Good drivers no longer need to subsidise the bad - First Link

Innovative short-term insurance broker, First Link today (Friday, 1 September) announced the launch of a new product that enables good, experienced motorists to end the system of de-facto insurance subsidies to high-risk drivers.

Its First Value motor insurance policy will be available only to those with a driving and claims record that demonstrates their discipline and care on the roads.

By redefining the risk pool and only grouping good drivers together, the broker can offer big price advantages to the motorist who drives safely and sensibly.

First Link Personal Lines Managing Director Aryeh Klein points out: "Mass motor insurance products create a disguised subsidy across a wide risk pool. In effect, the general level of premiums means the good driver ends up meeting part of the cost created by the bad driver.

"First Value is not intended for the mass market. It is a niche product with strict focus on good, experienced drivers who are rewarded for their defensive driving ability through a significantly reduced premium."

First Value is underwritten by Regent Insurance.

Before qualifying for access to this special risk category, factors such as the drivers age, licence age and previous claims experience are taken into consideration.

Klein adds: "The traditional approach to risk and premium structures gives little incentive to drivers who show a sense of responsibility to their fellow-road users. When good and bad drivers are grouped together with no attempt at differentiation, the socially responsible road user pays the same premium as the individual with a poor driving record.

"First Link believes it is time to reward the good drivers by applying a quality filter to the risk pool and providing significantly lower premiums."