Many brokers have abandoned market as young drivers use aggregators

Motor intermediary Provisional Marmalade is in discussions with brokers to help them find insurance for young drivers.

Founder Nick Moger said insurance brokers were finding it tough to place business for drivers aged between 17 and 22. Many brokers had stopped dealing in this market, because of a combination of young drivers increasingly using aggregators and insurers pulling away from non-specialist intermediaries, he said. But brokers still needed placements on clients’ requests.

Provisional Marmalade arranges motor insurance for youngsters and sets them up with a vehicle.

“Brokers keep asking for help,” Moger said. “I had quite a big one in Manchester, with a chief executive client who has an 18-year-old child. He couldn't get insurance below £6,000. A lot of commercial brokers do not normally want to turn a big client down."

As reported by Insurance Times, premiums for drivers aged between 17 and 22 have soared by 33% in the past nine months, according to the AA shoparound index. It could reach 45% by October this year.

Subscriber Exclusive: Young drivers in line for 45% increase in premium.