Car Insurance: Young People

Debate between Stuart Blair Donaldson and Anne Main

Monday 20th March 2017 Westminster Hall

[Stuart Blair Donaldson (West Aberdeenshire and Kincardine) (SNP)]

It is a pleasure to serve under your chairmanship, Sir Roger, and to speak in the debate.

I must declare an interest as a 25-year-old driver who has just renewed his car insurance. It was not as bad as I thought it would be, which is good to report. I do not expect any hon. Members present today to lend me their car, for any amount of money, but the fact that 185,000 people signed the petition shows how much of an issue insurance is for young people. I grew up in and represent a rural area and I know how important cars are to enable young people to get around for work, leisure and social life. In rural Aberdeenshire, much of that takes place in Aberdeen, and people need a car to get there. I used to have to walk for 40 minutes to get the bus before I could drive, so this is a real issue.

The increased use of cars in every aspect of young people’s lives does increase risk. However, like any other age group, young people are not all the same; there are good drivers and bad drivers. Obviously, the statistics show that young people are more likely to have an accident, but as the hon. Member for Bexhill and Battle (Huw Merriman) mentioned, using black boxes to measure the driving ability of individuals is so important. The son of one of my members of staff has just passed his driving test and has a black box in his car; he refuses to let his mum use the car because she puts the bad driving statistics up. It is important to say that not all bad drivers are young drivers and not all novice drivers are young drivers, although the cost of insurance tends to go down once somebody reaches 25.

Car insurance costs rose by 102% from 1994 to 2011; as has been mentioned, that is in no small part due to whiplash claims, which now add approximately 20% to each policy. That is particularly damaging to young people—96% of young drivers now think they are being priced off the road. The issue is further compounded by the increase in the standard rate of insurance premium tax from 10% to 12% from June, which will hit individuals with the highest insurance premiums hardest: young people and those living in high-crime areas. That, along with a whole lot of other things, is hurting people.

It has been said that millennials—my generation—will probably be the first generation who are worse off than those who came before them. We have to look at that as a whole when it comes to premiums for young drivers. Obviously, many jobs require individuals to be able to drive; I would not be able to do my job if I could not drive. Being able to drive can still be the difference between successfully securing a job and failing to secure one.

As has been said, the issue is fundamentally about social mobility. Making longer distance travel easier for those without access to quick, regular or close-by public transport could increase their chances of employment. Another problem that young people face, particularly in rural areas, is sometimes having to wait up to five months to get a driving test. As hon. Members will imagine, that increases their frustration and also means that they have to spend more money on taking top-up tests.

I would like to see powers in this area devolved so that they can be better tailored to rural areas in Scotland and Scottish drivers. I learned to drive when I was 16 in a field with my grandpa, who is a farmer and a former Member; unfortunately, it did not help me to pass my test first time. However, I thought what my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (Calum Kerr) said about 14 year-olds being taught how to drive in school was interesting. I was taught how to cycle in school time—I did my cycling proficiency test in primary school; I do not know how many other hon. Members did that—so I thought that idea was interesting and should be considered more widely.

I have disagreed with some points that have been made, such as preventing younger people from driving at night. Where I come from in the north-east of Scotland—

[Mrs Main]

It is dark all the time.

[Stuart Blair Donaldson]

It is dark all the time—absolutely. In winter, it gets light after 8 o’clock in the morning and gets dark at about 4 o’clock in the afternoon. Not driving at night would be a real issue and prevent a lot of young people from working.

The constituency that I represent, West Aberdeenshire and Kincardine, has the second highest number of road deaths in the UK, for which there are a number of reasons. Councils, the police, the fire service and the Scottish ambulance service in Grampian run a programme called “Safe Drive Stay Alive”. It has been going for 11 or 12 years; it was certainly on when I was at school. It brings local schools together and shows them a presentation that, to be honest, is pretty horrific. It has graphic images of car accidents, speeches from people who have lost loved ones and speeches from people who have been paralysed by car accidents.

The programme has a huge impact on young drivers, and to some extent I think it is effective in scaring young people into realising that, when they are learning to drive and when they pass their test, they are in charge of a machine that can quite easily kill somebody. It is important to emphasise that learning how to pass a test is not the same as learning how to drive; I am still learning how to drive to some extent.