Insurance for youger drivers

[paulhumphries]

Insurance for younger drivers is a regular topic.
This might be worth reading for anyone who is considering insuring in a parents name for cheaper premium as it lays it out in back and white how the insurance industry regards such actions.

http://www.insurancedaily.co.uk/2007/11 ... g-problem/

Paul Humphries

[AndrewSkinner]

The problem is though we are forced into doing it.

Some of us actualy care about our cars and dont drive like idiots. we cant afford 1K a year just on insurance! it is stupid.

If we actualy had a way of getting reasonable car insurance then maybe the insurance companies wouldnt have this problem! they bring it on themselves.

I had my mum added to my insurance which brings it down, but who is to say that I added her for that? The real reason was so that every now and then, if she needed to she could use my car.

the whole topic on insurnance for younger drivers revs me up because it is completely ridiculous what they are allowed to charge.

Is anyone else with me?

[MoggyTech]

is anyone else with me?

Yes and no. While there are some excellent young drivers on the road, the simple percentage figures of who is more likely to have an accident is what the insurance companies work to. A driver under 25 is 5 times more likely to be involved in an RTA. So if you take my premium for a Polo Sport of £180/annum and then get a quote for 21 year old driver it will come out to about £900 (180x5) It really is that simple.

What I would like to see, is an optional advanced drivers test for younger drivers, that can be used to lower premiums.

If you look at it from the Insurance companies perspective, they have no way of telling who is a sensible young person, and who is a boy racer.

[AndrewSkinner]

is anyone else with me?

What I would like to see, is an optional advanced drivers test for younger drivers, that can be used to lower premiums.

yes! that is a good idea. I just dont think the system is good enough. things should be taken into more consideration. pass plus is a joke. my friends litteraly did nothing to get it and insurance compaines are starting to see this.

[Orkney]

Really sympathise with you Andrew.
Trouble is you only have to look at the majority of the boy racers and realise that evryone of a certain age is tarred with the same brush & premiums accordingly.
Its a real shame that the insurance companies cant appreciate that theres a heck of a market for a reasonable priced policy for young enthusiasts Would think in a fair and just risk assesment it would be a good assumption that any youngster driving a classic is a lot less likely to be a hot head and certainly less likely to be involved in an accident.
Alas pretty much what MT said they have no way to differntiate, however if they wernt such a bunch of money grabbers they would use the type of car as a starting point to do so.

[chrisd87]

I am with you Andrew, I'm 20 but still paying stupid amounts for insurance and it annoys me greatly.
I have 3 years NCB now but the premium is only slightly less than when I started out - how can that be? Basically I think that if you're a young bloke then they know they've 'got' you, so can pretty much charge whatever they fancy as you have to buy insurance by law. Which is why I'd prefer the Aussie rego system, but that's a different topic.

My mum did this 'fronting' for my brother until fairly recently. I never knew it was illegal to be honest. Still, I am not a big fan of insurance companies so anything to minimise the amount of money you give them is good.

[aupickup]

yes and so did i when i was 20 back in the late 60`s

[8009STEVE]

an optional advanced drivers test for younger drivers, that can be used to lower premiums.

It is called Pass Plus, but must be done within 1 year of passing the test.

[superchargedfool]

I am 37 and can still remember being young!

i would always say insure in your own name, i did.

I realise insurance is very expensive when young but it is because of the amount of young guns that crash un-neccesarily in there first few years. Nobody else to blaim there i'm afraid.

I drove a modded TR6 at 21 and just paid the premium which was a lot higher than my mates in 1300 fiesta's, but hey it worked with the ladies!

Seriously though, if you drive a small engined car for a bit longer than your friends, do it all in your own name, don't fall off the road or hit an innocent, you will end up with more sensible premiums in the end.

[callyspoy]

insurance is a bit of a joke to be fair for us young folk(no offence to the elders) but...you can't argue with the statistics. i agree with superchargedfool about keeping insured on a smaller engined car for longer, it does make sense. i had my Supra before the mog and it cost 1100 to insure, the mog cost 300. quite a massive difference to me! i wish i had got a mog sooner! it depends on the car as well i guess...a 1 litre corsa cost my friends brother more to insure than a 1.5 Daewoo, which seems daft to me...bu then what boy racer wants to drive a daewoo!

[paulhumphries]

Dear insurance for younger drivers is nothing new.
It was exactly the same when I started driving in early '70's.

Paul Humphries

[bigginger]

...and '80s. Plus ça change...
a

[SteveandWilliam]

I didn't6 know the practice was illegal! I have a 17 year old son and soon he will have a provisional. What would I expect to pay for insurance on a Morris, if he was the first named driver?

I know several 17 year olds, and a couple have already lost their licence for getting 6 points on the licence, so you can see why its expensive.

[matt993fod]

I am only 18 and Footman James quoted me a mere 380 pounds for limited mileage cover of 3000 miles a year. The next best company is AON, who charge only 500 pounds for the same mileage.

That is one of the many reasons why I love my moggy. It costs me a pittance to insure, no tax, fuel costs that make lawn mowers look thirsty and more fun than you can possibly have in anything newer.

My brother also has a moggy, and pays just as little to insure his.

By comparison, it would cost me 2000 pounds a year to insure my grandmother's Pugeot 205 automatic, 1700 pounds a year to insure the Wolseley 1300 my Father used to own, 1100 pounds to insure an 80s 1100 fiesta (the minor is faster and handles better than one of these!) and 800 pounds to insure an 800cc old fiat panda.

An amusing aside is when we called those "quote you happy" people, they first asked if the Minor was a Rover, then quoted us 1700 pounds a year.

[Kevin]

I didn't know the practice was illegal!

Its because the second driver is supposedly doing only a small mileage as they are not the main driver but if in reality its the other way round the insurance company will say you have not supplied the correct information and therefore the insurance is not valid under the policy, as in your case Steve if he is the main driver it wont be a problem.

[dunketh]

The trouble with insurance is a lack of any sensible regulation.
I know someone who was quoted nearly a grand for a 957cc Fiesta mk1.

How do they justify that? The car has no material value whatsoever.
Thats nearly £1000 a year straight into the fat-cats pockets. How do these people sleep at night?

The thing is you never get it back. I've paid insurance all my life yet never claimed - so where's all my money gone?
Makes me want to crash into a new merc just to get some value from the agreement... but then they'd put up my premiums despite the fact I've already paid for the 'privelidge' of having an accident

I honestly don't blame any young drivers for not having legal insurance. Its the insurance industry's fault for pricing them out.

[Furrtiv]

I'm afraid I'd have to disagree, having needed my insurance on more than one occasion! And no, I'm not a manic driver, just somewhat unlucky.
I pay my insurance on the basis that, if indeed I do hit and damage or write-off a very expensive car, I won't have to worry about finding the money out of my own pocket.
Insurance companies do have to take risk calculations on groups of drivers, there's simply no way you can take someone with little or no driving history and give them an accurate quote tailored for them, as you've no idea what they're like as a driver. The unfortunate fact is that younger drivers are statistically more likely to have more accidents than those in older age groups, and that is where NCB should come in (although often it makes little difference, it seems - I have none, and still have a small insurance cost on my moggy). If you have a large number of years on NCB, then obviously you're a safer driver than someone who has none, according to the way the insurance companies will see it.
What's really needed is maybe a system similar to Pass Plus, but much tougher to pass and much stricter, so that it can count for a lot more when you're starting out as a motorist.

[dunketh]

I pay my insurance on the basis that, if indeed I do hit and damage or write-off a very expensive car, I won't have to worry about finding the money out of my own pocket.

But that's when the 'scam' kicks in.
Correct, you wont have to foot your own or anyone elses big repair bill but... you'll pay for it indirectly.
Your premiums will double from that day forth. So although you didnt have to worry about finding the money 'up front' you certainly haven't saved anything in the long run.

The Pass Plus idea is a good one. The test needs to be much harder. When I passed my driving test it was a doddle. We didn't even hit any 'fast' roads and if you're immobile in traffic for half the lesson you still passed as they're only allowed 30 minutes (or whatever it is now) in which to test you.

[Furrtiv]

But what about if I can't afford the money up-front to repair that nice Roller I've just wrecked, eh? I'd rather pay for insurance, plus they sort out all the legal stuff for you too - I hit the back of a modern hatchback a few years ago in my second Minor (wrote it off), and it helped me repair the other party's car and sort out their compensation claim without nme having to do anything. If someone sues me for a few tens of thousands or more and I don't have insurance, I'm ruined. I couldn't even afford to pay for court costs, and I wouldn't get legal aid because I am working, but I don't earn enough to pay a lawyer/solicitor, yet am just above the threshold for free help.

And if someone uninsured hit you, wrote off your car and possibly injured you, how would you claim it back from them if they lacked the wherewithall to pay it up-front? You may be able to claim something from a fund for road victims, but if they were insured it would all be sorted out for you with the minimum of fuss (hopefully).

It's been said before a few times, but insurance companies work on risk factors - if you've been driving years, in a low-risk car like a classic Moggy that you'll take care of, and you never have any accidents or make a claim, then you'll get lower premiums. If you really want to get lower insurance premiums for younger drivers, get somebody to do something to seriously tackle the amount of younger drivers involved in accidents.

My partner hasn't even started to learn to drive yet and he's in his mid-thirties; he figures that will help his insurance premiums when he gets hit for it the first time he needs to pay out for insurance.

So no, I don't believe that insurance is a scam. It is a shame that younger drivers have to pay such ridiculously priced premiums, but there are reasons for that. In any given area, especially in cities and suburbs, you can see why youg drivers get higher premiums; many seem to have expensive first cars bought for them by mum or dad, and treat it as much as an accessory as a vehicle. I knew young ladies at college who wouldn't even dream of topping up their oil, let alone changing a tyre or recharging the battery, or god forbid, servicing the car yourself! So I hope you can see what I'm getting at here; SOME younger drivers make it bad for the rest. If these were being dealt with effectively and the statistics changed, then the insurance companies might take notice.

I'm not having a go at anyone, I just maybe see things a bit differently, having needed my insurance on more than one occasion!

[MoggyTech]

Forgot to mention before, Insurance premiums are also a post code lottery. If you live in a high crime area premiums can be double that of other areas. So you are indirectly paying for the actions of criminals, not just your own age status or driving record!

It's good to see cars being impounded when caught driving with no insurance. Sad truth is the majority of law abiding people, pay through the nose, for the actions of a minority