A rather strange post in which the first point tells us that most young people either don't bother driving or if they do, are unisured. Goverment stats show that in the 90's, 48% of 17-20 year olds held a licence - 10 years later the figure dropped to 26% and has crept up a little ever since. So even if just one driver did not have insurance or their parents fronted the policy it falls into the 'most' category.

The situation regarding untaxed/uninsured cars is improving with ANPR systems. Chances are your neighbour does not have a licence or has a few endorsements that would make it impossible to get an insurance quote in the future. An IN10 - driving without insurance - is a criminal conviction that stays on the licence for a long time. Once people are in that circle it is difficult to do anything. Pray that he does not hit your car and you have to make a claim against the fund that everyone already pays for to cover insured claims.

The biggest payout for the insurance companies is claims, the industry average is over 80% of premium receipts (closer to 100% for young drivers) - reducing the marketing costs and office overheads will not bring the insurance levels down to NZ levels. Your figures are way out. All your proposal will do would significantly increase the costs for drivers of all age groups to help a few more young drivers and end up with poor levels of administration. If you drive well without making any claims you still pay the same as an idiot like your neighbour - don't think that is a good idea and it is better left on the other side of the world.