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"Young drivers get a raw deal," says Deputy McGrath
Deputy Paul McGrath expressed his surprise and disappointment that insurance companies have been found to be making more profit on young drivers under 25 years of age than on almost any other category of driver.
"The cost of insurance for young drivers is extremely high and in many cases prohibitive," says Deputy Paul McGrath. "I find it incredible that insurance companies should target these young people to enhance company profits.
"This information has come from a report on the Motor Advisory Insurance Board which looked at ‘the books’ of the largest insurance companies and it questions the idea that drivers under 25 years were a non profitable risk," says Deputy McGrath.
"The report reveals that insurers make an average profit of £211 per head on drivers aged 22-24 between 1993 and 1997. The report also shows that young female drivers aged 19 and 20 delivered a profit of £730 to their insurers," says McGrath.
"This report also questions why some companies refuse to quote for drivers under 30 and in some instances give quotations which are totally prohibitive.
"I acknowledge the very high carnage on our Irish roads and the fact that more than 50 young drivers (under 25) were killed in accidents in 1998 is very frightening. The high level of admissions to casualty units is also a clear indication that this age group are prone to accidents," says McGrath.
"Fine Gael launched a policy document on young drivers and the cost of car insurance some time ago and this document outlined a positive approach on the need for young drivers to improve their skills. The proposals included
- the provision of subsidised driving lessons
- a payment of £300 to those who had completed a proper training course
- a reduction by insurance companies for those who had completed this course.
"Driving lessons should also include night driving experience as well as lessons on dual carriageways and motorways," says Deputy McGrath.
"With our roads becoming more crowded, proper driving tuition must be encouraged," says McGrath.
"I call on the Government to put in place a programme to reduce insurance costs for young drivers and to stop insurance companies ripping off young drivers," says Paul McGrath.
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