Question to the Department for Transport:

To ask Her Majesty's Government what assessment they have made of the cost of vehicle insurance for young people between the ages of 17 and 20 years old; and the implications of such costs on the employment prospects for young people in deprived areas.

Motor insurers are responsible for setting the terms and conditions of the policies that they offer and it is for them to decide the level of risk that they take in issuing any policy to a given applicant.

The Government recognises that the cost of motor insurance can be high for new drivers. Motor insurance premiums can vary according to the potential risk that a driver poses and this can include factors such as the age of the applicant, the types of vehicle being driven, the postal area where the applicant lives and the driving experience of the applicant.

As promised in the Road Safety Statement, the Department for Transport has commissioned a £2 million research programme to explore the effectiveness of a range of measures to improve the safety of young and novice drivers, both before they take their test and after they have passed. The Government would like to see improvements in young driver safety reflected in their insurance premiums.