Higher insurance premiums for inexperienced HGV drivers are creating a major barrier to entry for younger recruits and worsening the sector’s looming driver shortage crisis, according to Driver Hire Training.
The recruitment and training specialist said haulage operators are often reluctant to employ newly qualified Class 1 and Class 2 drivers because insurers either significantly increase premiums or refuse cover altogether for drivers with limited experience.
John Keelan-Edwards, Driver Hire Training MD, warned that the issue risks undermining efforts to attract a new generation of drivers at a time when more than half of the current workforce is approaching retirement age.
“With a large portion of the UK driver cohort retiring in the next five to 10 years, the industry needs an influx of new drivers,” he said.
“Higher insurance costs for less experienced drivers can pose problems for companies, and as a result impacts much-needed new drivers finding work.”
Industry bodies have repeatedly highlighted the age imbalance within the UK logistics workforce. According to DfT figures, more than 55% of HGV drivers are aged between 50 and 65, while fewer than 2% are under 24.
Operators and training providers say insurers frequently impose excesses running into thousands of pounds for drivers under 25 or those with less than two years’ experience. In some cases, firms report annual fleet premiums increasing by 10% to 30% if younger drivers are included on policies.
Insurance broker estimates have also suggested that claims involving younger HGV drivers can cost significantly more because of vehicle repair costs, cargo losses and third-party liabilities, making insurers cautious about underwriting inexperienced drivers.
Keelan-Edwards said the result is a “catch-22” situation for newly qualified drivers.
“We all know that for car drivers, insurance companies often charge more for young or inexperienced drivers, or may even choose not to offer cover. The same is true for professional drivers,” he said.
“This creates a cycle where newly qualified drivers may struggle to find jobs because they lack experience, but cannot gain this experience because of difficulties with insurance.”
Driver Hire notes that other countries have adopted insurance systems that avoid penalising operators for hiring younger drivers.
In Germany, HGV insurance is typically attached to the vehicle or fleet rather than the individual driver, allowing multiple drivers to operate under the same policy without substantial premium increases for inexperienced staff.
Keelan-Edwards said the Netherlands operates a similar approach, with insurers placing greater emphasis on fleet safety systems, telematics and driver management procedures rather than solely on driver age or experience.
“These drivers come under one policy within the business, and the costs for insurance do not change depending on how many inexperienced or young drivers a company has working for them,” he said.
“Instead, the cost is calculated based on how many safety systems the company has and telematics.”
The company believes the UK could benefit from adopting more fleet-based insurance models combined with structured mentoring and graduated training schemes.
“The logistics sector keeps the country running, and right now our system is putting up barriers for the next generation of drivers, instead of making it easy,” Keelan-Edwards added.
