BIBA Sets Out Plan in Parliament to Reduce Young Driver Insurance Premiums

28th February 2017

The British Insurance Brokers’ Association (BIBA) is set to give evidence today to the Petitions Committee, which is working jointly with the Transport Committee on the cost of car insurance for young people.

The debate comes the day after the Government made changes to personal injury awards which could increase young driver premiums by £1,0001. BIBA’s Executive Director, Graeme Trudgill, is set to urge the Government to reconsider the personal injury claims award model and will explain the industry’s risk based-pricing approach.

A  petition, signed by more than 180,000 people, calling for a cap on the cost of car insurance for young people triggered the debate.  Trudgill will warn that if a cap is introduced then the cost of young driver claims would have to be passed on to other motorists through even further increased pricing.

Instead he will urge the Committee to consider BIBA’s eight point plan which, if implemented, will provide safer roads and cheaper premiums for young drivers.

Trudgill is also set to warn the Committee that potential increases to Insurance Premium Tax (IPT), the tax on insurance in next week’s budget, could further increase premiums. In the period from November 2015 to June 2017 IPT is set to double having a significant effect on young driver premiums increasing the average tax they would pay for a £1,500 policy from £90 to £180.

Trudgill will outline the eight point plan including calls for a reduction in the rate of IPT to zero for young drivers using telematics policies, for the driving test to include learnings from speed awareness courses, for greater promotion of safety measures in vehicles such as autonomous emergency braking and for the Government to utilise BIBA’s Find-A-Broker service to match young drivers with specialist brokers providing discounts for features such as dash-cams and telematics.

The remaining points include calls for greater promotion and recognition, VAT breaks and sponsorship of post-test advanced driving courses for young drivers, for Government to implement the legal and regulatory reforms to reduce the £2billion cost of whiplash claims as per the Prison and Courts Bill, and for the implementation of all 26 recommendations of the Insurance Fraud Taskforce.

The evidence session will be followed by a debate in Parliament on 20 March.


Notes to editors


  1. 1 PwC


  1. Young drivers make up just 12% of licence holders but they are involved in 25% of road deaths and serious accidents, and these claims tend to be far more expensive. 17-20 year old male drivers are nearly ten times more likely to be killed or seriously injured than an older driver.


  1. For further information please contact:

BIBA press office:
Leighann Forsyth; Deputy Head of Communications
020 7397 0223
[email protected]

  1. About the British Insurance Brokers’ Association

The British Insurance Brokers’ Association (BIBA) is the UK’s leading general insurance intermediary organisation representing the interests of insurance brokers, intermediaries and their customers.

BIBA membership includes just under 2,000 regulated firms, employing more than 100,000 staff.  General insurance brokers contribute 1% of GDP to the UK economy, they arrange 52% of all general insurance and 78% of all commercial insurance business. Insurance brokers put their customers’ interests first, providing advice, access to suitable insurance protection and risk management.

BIBA helps more than 250,000 people a year to access insurance protection through its Find a Broker service, both online and via the telephone.

BIBA is the voice of the sector advising members, the regulators, consumer bodies and other stakeholders on key insurance issues.