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Cost of insurance hitting young drivers

Thu, 30 Mar 2006

The growing cost of regulation within the insurance industry is pushing up motoring costs for many Young Drivers.

The Association of British Insurers (ABI) believes that many consumers are being forced to pay more to help companies offset the cost of increased paperwork and regulation.

Recent research by ABI estimates that such regulation costs total around £400 million a year and are simply being passed on to consumers in the form of higher premiums. This could mean that many Young Drivers will see their motoring costs rising even higher.

The new rules introduced by the Financial Services Authority (FSA) at the start of the year force brokers to tell potential customers details about their work during the sales process including complaints procedures and how many different products they offer.

ABI director general, Stephen Hadrill, stressed that the extra paperwork means that consumers will find it harder to shop around for a good deal and he called for the FSA to rethink the need to provide customers with "excessive" information on policies in order to cut costs and reduce time.


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Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.