Seems nobody has mentioned the effect ACC has on the availability of vehicles "unsuitable" for younger drivers. As a teenager in Europe try buying a GTO or WRX and see how far you get. The first thing the dealer is going to say is "certainly sir, just show me your insurance details". No insurance, no car. In the UK a typical teenager can get insurance for non-sports cars under 1600cc easily enough although even then the cost is far more attractive for something like a 1200cc Starlet. Want to modify it? Sorry, no.
Insurance companies make their living assessing risk, none of them would cover an 18 year old driving a GTO, (for example) at any price. ACC does, at the same price as you're Mum in her corolla. This is one example of how an artificial market creates huge inequities in costing, the real cost of personal insurance for kids in badly modified sports cars is just plain unacceptable, no matter who’s paying for it.
I also have a problem with lending institutions behaviour. If you look at the price of cars in low socio-economic areas they’re damn near twice that of others. Same with yards that specialise in “boy racer” models and accessory shops. Why? Because they’re not selling cars they’re selling finance. High interest finance, because it’s high risk lending, they expect a high rate of defaulters. I don’t know where the line between ethically valid financial lending and outright usury is but I reckon that’s well over it. If high risk vehicle owners had to pay the full costs of purchasing and insuring their vehicles up front a lot of our problems would disappear overnight.
Go soothingly on the grease mud, as there lurks the skid demon
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