On what basis do insurers set premium rates?
A – For each individual, based on the proportion of the loan amount to the overall cost of the vehicle
B – For groups of customers, regardless of personal details or even dangerous hobbies
C – For individual customers, based on the values of the vehicles being purchased
D – For specific groups of customers, but excluding those with high risk personal details or dangerous hobbies
B: Insurers apply premium rates to groups of customers, taking no account of their personal details or generally the extent to which they engage in dangerous activities.
A: Reinstatement B: New for old C: Indemnity D: Replacement
A: At review premiums can rise, fall or stay the same.
According to Department for Transport figures, what percentage of young drivers can expect to have an accident within 12 months of passing their driving test?
B: DfT figures suggest there are around 1,700 road deaths per annum, with drivers aged 17-25 accounting for only 12% of drivers but 25% of road deaths.