A fifth of young motorists are driving without car insurance, a new report from the Motor Insurance Bureau (MIB) revealed today.

The MIB, which is funded by the motor insurance industry and pays compensation to those involved in an accident with an uninsured driver, estimates that around 243,000 drivers aged between 17 and 20 are uninsured.

The report found that one in 10 young drivers claim not to know that motorists must purchase car insurance by law. However, this group poses a particular danger on the road, because young people are 4 times more likely that average to be involved in claims.

Ashton West, chief executive of the MIB, said: “Young people make up a significant number of uninsured drivers, and with one in five newly qualified drivers having an accident in the first year of driving they need to make choices based on the consequences of driving without insurance and not just on price alone.”

The cost of insuring a 17-year-old male driver on a car can be as much as £2,000-£3,000 a year, which puts off many young motorists from taking out car insurance, the report said.

“While we recognise the financial pressures for drivers taking to the roads for the first time, it is also a criminal offence to drive without proper insurance cover,” West said.

Drivers caught without car insurance could have their vehicle confiscated, be fined and receive up to eight penalty points on their license, while those who cause a fatality on the road when they are uninsured could face two years in prison. Each year, around 230,000 people are convicted in the UK for driving without insurance.

Director of AA Insurance Simon Douglas says that whilst the latest figures are not surprising “it is shocking to see this statistic confirmed”.

“Uninsured driving is not a victimless crime. Young drivers are 10 times more likely to be involved in a collision than more experienced drivers. If they have no insurance, any claim has to be met by the MIB, which in turn is funded by honest insurers.”

This entry was posted on Thursday, August 27th, 2009 at 3:45 pm and is filed under Car Insurance, Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.