A new innovation in car insurance products, aimed at young drivers has been launched, hoping to lower their chances of paying high premiums.
The policy, which has been introduced in the last week by insurance provider, Swinton, offers a six-month "trial period" for those who have just passed their tests, the Guardian newspaper reports.
It was developed as a reaction to the more costly insurance fees currently levied on younger drivers, due to the age group representing a proportionally higher accident risk.
With some of these premiums costing in excess of £2,000 a year, the firm has moved in with a discount offer. Under the new policy's terms, the driver takes out insurance for six months; then, if they have not made a claim in that period, they are granted the opportunity to renew for a further year at a 30 per cent discount.
Andy Roden, a spokesman for the firm, said: “People hoping to sign up to the new policy should also make sure that they drive "smaller, lower-powered cars" in order to get a "reasonable" price. This is because lighter, slower models generally represent a smaller accident risk, and cause less damage if they are involved in a crash.”
|