In reply to Neil Williams:
I completely agree that younger drivers are more likely to have accidents, and paying more makes total sense, however the costs in the UK far exceed what I would expect to pay.
I struggled to get an insurance quote for less than £1300-£1500 initially, normally with a £500 excess. The exception to this price bracket was £790 on a certain Ford Focus estate. I've no idea why it came out so low.
For a point of comparison, in South Africa a few years ago at 19 I paid ~£300 fully comp on a Mercedes C Class 2.2l while visiting family there. Similarly, in the States my girlfriends family pay a couple of hundred dollars extra to have a 17 and a 21 year old on their policy.
According to the department for transport, around 500000 17-25 year olds pass their driving tests yearly. Assuming half get a car and that number has been constant, that puts four million 17-25 year old drivers on the road (bit high maybe). Brake.org reckons 25% of these drivers will have an accident, which makes for a million accidents. Assuming the younger driver is at fault 100% of the time, if each driver pays £1300 or so including excess, that pretty much leaves £5200 for each incident. Most minor ones should cost less than that to be sorted, leaving a chunk left over for bigger incidents. Which sort of makes my point a bit moot.
So after that pointless arithmetic exercise, it kinda sounds like it'll break even, meaning the profit must come from older drivers. Insurance works because many people pay a little bit into a pot to cover the few who screw up. I should go do something more productive now.
Post edited at 09:03