MPs to debate £1200 insurance cap for under 25s.

MPs to debate £1200 insurance cap for under 25s.

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Discussion

xjay1337

Original Poster:

15,966 posts

117 months

Wednesday 22nd March 2017
quotequote all
http://www.bbc.co.uk/news/business-39327089

What do you think?

PS Sorry if discussed elsewhere.

s3fella

10,524 posts

186 months

Wednesday 22nd March 2017
quotequote all
Anyone over 25 will have to pay more then?

£1200 is not a lot of money and I'd think it will push up premiums for others.

It's not uncommon to see young people driving about in some quite pricey motors, 20k plus and if they then moan about insurance prices, I don't have a lot of sympathy tbh.

Edited by s3fella on Wednesday 22 March 18:04

caveman87

10 posts

97 months

Wednesday 22nd March 2017
quotequote all
My insurance is £1239 a year £1200 for what a moped

PositronicRay

26,957 posts

182 months

Wednesday 22nd March 2017
quotequote all
If they cap ins premiums the ins companies will just decline cover.
Stupid debate, waste of public money.

grumbledoak

31,499 posts

232 months

Wednesday 22nd March 2017
quotequote all
Stupid idea. Stupid debate. Waste of public money.

If the insurance companies are forming cartels to keep these prices artificially high, Parliament should deal with that. Any other form of intervention is just market manipulation at the public's expense.

Gargamel

14,957 posts

260 months

Wednesday 22nd March 2017
quotequote all
If they limit it to say 2.0 litre cars or below then I see no reason not to. Insurance is mandatory after all. some premiums are just outrageous.

we have all kinds of market interference I don't see what is different here

BlackLabel

13,251 posts

122 months

Wednesday 22nd March 2017
quotequote all
PositronicRay said:
If they cap ins premiums the ins companies will just decline cover.
Stupid debate, waste of public money.
They are only debating it because an e-petition on this subject got the required number of signatures to trigger a debate. They're just going through the motions.

Puddenchucker

4,036 posts

217 months

Wednesday 22nd March 2017
quotequote all
How about another suggestion:

Keep the premiums for young/inexperience drivers the same as now but with, say, a 50% refund if they go the year without any (at fault) claims/accidents or convictions.

i.e. a tangible financial incentive to drive sensibly.

Dixy

2,913 posts

204 months

Wednesday 22nd March 2017
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If MPs want to effect the cost how about not taxing it.

anonymous-user

53 months

Wednesday 22nd March 2017
quotequote all
[quote=Gargamel]If they limit it to say 2.0 litre cars or below then I see no reason not to. Insurance is mandatory after all. some premiums are just outrageous.

Premiums are outrageous for obvious reasons. No insurance company is going to write insurance at a loss which means they will simply refuse cover. The unintended consequence would be an effective ban on the under 25's from driving interesting cars (in their own name) or ban youngsters who live in stty areas from owning a car at all. It's an idiotic idea.

Ian Geary

4,462 posts

191 months

Wednesday 22nd March 2017
quotequote all
I would only agree if the cap was set on a fairly low insurance group.

Insurance premiums do act as (sort of) check and balance for youthful exuberance in cars.

Obviously it will be funded by all other age groups. I wonder if the debate also incuded a cap on payouts?


Ian

98elise

26,374 posts

160 months

Wednesday 22nd March 2017
quotequote all
Puddenchucker said:
How about another suggestion:

Keep the premiums for young/inexperience drivers the same as now but with, say, a 50% refund if they go the year without any (at fault) claims/accidents or convictions.

i.e. a tangible financial incentive to drive sensibly.
Where is the money coming from to pay the rebate. Do the insurance co staff have to hand back half their salaries, or to the people that crash only get half their car fixed?

Sheepshanks

32,528 posts

118 months

Wednesday 22nd March 2017
quotequote all
They could include 3rd party cover in the price of fuel. That'd boost the value of big engined older cars as teenage lads competed to buy them!

menguin

3,762 posts

220 months

Wednesday 22nd March 2017
quotequote all
Non story - they're only debating it because it reached 100,000 signatures. It'll never get any further.

anonymous-user

53 months

Wednesday 22nd March 2017
quotequote all
Puddenchucker said:
How about another suggestion:

Keep the premiums for young/inexperience drivers the same as now but with, say, a 50% refund if they go the year without any (at fault) claims/accidents or convictions.

i.e. a tangible financial incentive to drive sensibly.
rolleyes You don't see a teeny little problem with this business model no?

spaximus

4,230 posts

252 months

Wednesday 22nd March 2017
quotequote all
They could do this easily. Choose a group of cars that fit a low performance, low model criteria and then set a maximum on those cars.

Anything outside that and you get to pay whatever it takes. So flash boy in a Fezza can still have one but his parents pay accordingly.

It might make manufacturers build cheap low tech cheap to repair starter cars so they could be included in such a scheme.

It might stop so many having no insurance and getting behind the wheel of unsuitable cars.

98elise

26,374 posts

160 months

Wednesday 22nd March 2017
quotequote all
Gargamel said:
If they limit it to say 2.0 litre cars or below then I see no reason not to. Insurance is mandatory after all. some premiums are just outrageous.

we have all kinds of market interference I don't see what is different here
Insurance prices are based on how much your risk group costs the insurance company. For it to be caped someone else needs to make up the difference.

Mr Happy

5,694 posts

219 months

Wednesday 22nd March 2017
quotequote all
spaximus said:
They could do this easily. Choose a group of cars that fit a low performance, low model criteria and then set a maximum on those cars.

Anything outside that and you get to pay whatever it takes. So flash boy in a Fezza can still have one but his parents pay accordingly.

It might make manufacturers build cheap low tech cheap to repair starter cars so they could be included in such a scheme.

It might stop so many having no insurance and getting behind the wheel of unsuitable cars.
The problem there is that even the crappiest Axiam 600 would still be able to get up to enough speed to kill or seriously injure people.

A cap as low as £1200 is a pipe dream, if it happens then I could see a lot of the main line insurers declining under 25s as a matter of course.

Murph7355

37,649 posts

255 months

Wednesday 22nd March 2017
quotequote all
Puddenchucker said:
How about another suggestion:

Keep the premiums for young/inexperience drivers the same as now but with, say, a 50% refund if they go the year without any (at fault) claims/accidents or convictions.

i.e. a tangible financial incentive to drive sensibly.
You don't really understand how insurance works, do you smile

caelite

4,273 posts

111 months

Wednesday 22nd March 2017
quotequote all
Murph7355 said:
Puddenchucker said:
How about another suggestion:

Keep the premiums for young/inexperience drivers the same as now but with, say, a 50% refund if they go the year without any (at fault) claims/accidents or convictions.

i.e. a tangible financial incentive to drive sensibly.
You don't really understand how insurance works, do you smile
Yup, they take your money, and spend it all on figuring out ways to give you as little as possible back. So it all kind of falls apart when you obligate them into actually paying out for once biggrin.