The problem in relation to the cost and availability of motor insurance cover for young drivers is that motorists in the 17 to 24 age category have a significantly higher frequency of claims than other categories of motorists. This is borne out by the findings of a survey undertaken by the Motor Insurance Advisory Board 1993. The survey found that, in the age groups examined (17-24, 25-30 and 30+), under both comprehensive and non-comprehensive cover, the frequency and average cost of claim in the 17-24 age group was significantly higher than in the other age categories. Consequently, the difficulty in obtaining insurance cover experienced by the under 25 age group and the high cost of premiums charged for cover reflects the commercial reality of insurers' underwriting experience with young drivers as a high risk category.
As I have already indicated to the House, I have commissioned a study of the economic impact of insurance costs in Ireland and of the key contributory factors in this regard. The study will incorporate an economic analysis of the market for private motorist insurance, including the segmentation of the market and the issue as to whether the premiums charged to higher risk categories, such as young drivers, has any adverse economic impact.