Car insurance and car for 17 yr old

Car insurance and car for 17 yr old

Author
Discussion

Moonhawk

10,730 posts

220 months

Sunday 7th February 2016
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Has car insurance actually gone up in real terms for young drivers?

I payed £800 TPFT in 1996 on a 1.1L Ford Fiesta (£1,373 in today's money). I was 20 at the time and had held a full licence for 2 years.

Rammon

Original Poster:

961 posts

182 months

Sunday 7th February 2016
quotequote all
Moonhawk said:
Has car insurance actually gone up in real terms for young drivers?

I payed £800 TPFT in 1996 on a 1.1L Ford Fiesta (£1,373 in today's money). I was 20 at the time and had held a full licence for 2 years.
Maybe I'm a bit out of touch with all this, as I say haven't had to deal with all this since I had my first car, a mk2 escort in 1986 lol
I don't remember paying more in insurance than the car was worth though!

Slow

6,973 posts

138 months

Sunday 7th February 2016
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Almost 4 years ago now I paid £2700 third party fire and theft. This was after alot of shopping around.

Been able to insure almost any car since I was 19, had a e46 320ci and a L322 Range Rover for £800 each.

Rammon

Original Poster:

961 posts

182 months

Sunday 7th February 2016
quotequote all
Slow said:
Almost 4 years ago now I paid £2700 third party fire and theft. This was after alot of shopping around.

Been able to insure almost any car since I was 19, had a e46 320ci and a L322 Range Rover for £800 each.
It's all about getting your NCB I suppose

Slow

6,973 posts

138 months

Sunday 7th February 2016
quotequote all
Rammon said:
Slow said:
Almost 4 years ago now I paid £2700 third party fire and theft. This was after alot of shopping around.

Been able to insure almost any car since I was 19, had a e46 320ci and a L322 Range Rover for £800 each.
It's all about getting your NCB I suppose
Would also point out I got 6 points at 18 and had to resit my test, would be even cheaper if I hadnt.

Rammon

Original Poster:

961 posts

182 months

Sunday 7th February 2016
quotequote all
Slow said:
Would also point out I got 6 points at 18 and had to resit my test, would be even cheaper if I hadnt.
Blimey!

itaa

148 posts

100 months

Sunday 7th February 2016
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You Guys Mad I now pay 40Eur/year for third party insurance?

ferrariF50lover

1,834 posts

227 months

Monday 8th February 2016
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98elise said:
Thats simply how insurance works. How is it abuse?
I've stated how it's abuse; mere correlation dressed up and sold as causation. Add to this the absence of 'zero option' and we end up in a situation where compete irrelevancies are used to justify increases in premium.

I have no wish to further derail the OPs thread. We've had this discussion on here before and people have expressed every standpoint under the sun. For that reason, I'm out.

Impasse

15,099 posts

242 months

Monday 8th February 2016
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Going back to mileage, we sold daughter's 1.0L VVTi Yaris with 130k on the clock, the next owners gave us the same amount we had paid for it a few years earlier - and said they were buying it for their daughter to learn in!

Oh and about a hundred years ago my first car was a MK3 Cortina 1.6L. £140 to buy, £225 to insure. 'Twas ever thus...

Antony Moxey

8,091 posts

220 months

Monday 8th February 2016
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My boy matched the OPs budget perfectly. His uncle, who works at a local dealership, got a part-ex 06-plate 1.2l Punto come in for £800. It needed a couple of things fixing but was a sound runner and has an MOT until next month (it should pass I'm told). Insurance is £1200, and that's with a black box fitted.

The boy's happy as he has his independence and it hasn't cost him/us a bomb (relatively), plus we get emailed progress reports from the insurance company on his driving and we can check online too.

Blanchimont

4,076 posts

123 months

Monday 8th February 2016
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I've found the likes of Aviva and Churchill would never insure me up until I was 21. Now I'm with Aviva.

I'd have a look at waiting for 6 months after they get their license. I did, it dropped the premium from £2800 to £1500. No other reasoning, the other quotes were exactly the same.

Add yourselves as named drivers, limit the mileage, consider a black box (although I wouldn't), look at the accelerator schemes some insurers offer (pay for 10 months, get a years NCB)

Think of left field cars. Something like a Civic Saloon?

Hol

8,419 posts

201 months

Monday 8th February 2016
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Last year we got my boy an Aygo and you should find a few early 55 plates for £2k, but a 53plate Yaris will definitely be in budget.

I didnt want him hamstringed by a black box (stories about kids being scared about accelerating/braking hard to avoid an accident situation bothered me) so I resigned myself to higher prices and looked for non-box policies.

Putting both my wife and I on the policy have lowered the premiums, but increasing the excess had no material impact TBH.

Annual first year premium before passing his test was only £500.
After passing his test, the first years 'annual' premium was £2400 with the same insurer).

He took nearly 6months to get around to passing, so we actually paid £250 for the first half-year and £1200 for the second half. Total first year premium was £1450.

This year, with his no claims we shopped about and he got a non-box policy for £1050 lump sum premium (it would have been nearly £1400 in installments) with legal cover and recovery included.



The thing to take from this is that they dont start paying the higher premium, until they pass their test, but they start acruing no-claims immediatey.






Edited by Hol on Monday 8th February 09:35

TheFinners

543 posts

128 months

Monday 8th February 2016
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skyrover said:
TBH there's really bugger all difference between them (57hp or 74 hp)... i.e slow or slower
The 1.2 is 23% more powerful which is very significant for low powered cars. A friend had a 1.0 for a while, it was barely quicker than walking, especially since he never really revved it either. The 1.2 would probably be better suited, not fast by any means but just powerful enough to not feel really gutless on the open road. From my experience there was never a huge difference between 1.0/1.2/1.4's when getting quotes for my first year.

V8RX7

26,905 posts

264 months

Monday 8th February 2016
quotequote all
Moonhawk said:
Has car insurance actually gone up in real terms for young drivers?

I payed £800 TPFT in 1996 on a 1.1L Ford Fiesta (£1,373 in today's money). I was 20 at the time and had held a full licence for 2 years.
My Dad paid £500 to insure me at 17 to have a MKII Ford Escort 1.3 in 1987 !

Which equals £1268 today, which I suspect is almost half what a 17yr old would expect to pay.

That was also pre internet so he just called his broker and didn't add himself on etc

Piersman2

6,599 posts

200 months

Monday 8th February 2016
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When my son was taking his lessons (2 years ago now) I bought him a 1.2 Corsa SXi as I couldn't stand to see him in a Micra like the one I'd bought his sister 3 years before.

It also turned out to be about the cheapest of all the likley candidates to insure, certainly not much more than the usual suspects like the Micra, Fiesta, Peugeots etc....

IIRC, the cost of a the initial insurance as a learner was about £800, then, when he passed his test 6 months later it cost him another few hundred to upgrade to having 'Passed'. When that policy expired he now had a years NCB and his renewal was only about £900( IIRC).

Did similar with my daughter when she was doing her lessons/tests about 5 years ago and the numbers were very similar except for her the upgrade after passing her test was only £90, much to my surprise. She was doing it in the little 1.0 Micra though.

shoestring7

6,138 posts

247 months

Monday 8th February 2016
quotequote all
I faced this last year. My son passed his test soon after 17 and ended up insuring his car via Tesco in his mother's name but with him as main driver (inc commuting to college and his part-time job) for £800-.

The vehicle part was a lottery - I tried many and most tiny engined hatchbacks (Fiesta, KA, Yaris, Micra etc) were about £1400-£1200. However there were anomalies; a 1995 VW Polo 1600 was £800 (a '96 Polo 1400 was £1100 - go figure) and he ended up with a mk2 Golf 1.6D. He's looked after the car so its worth more than he (and I) paid for it.

He's going to have to renew soon, but hopefully the 1 year NCD they've accrued should keep the premium at the same level.

My advice; use the aggregate sites (and Tescos) trying various reg. numbers of likely cars until you find one that's cheap, and as long as you're open about the main driver don't worry about insuring in a parent's name.

HTH

SS7

V8RX7

26,905 posts

264 months

Monday 8th February 2016
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shoestring7 said:
. My son passed his test soon after 17 and ended up insuring his car via Tesco in his mother's name but with him as main driver (inc commuting to college and his part-time job) for £800
Is that possible / legal ?
How can a policy be in someone else's name but the child as the main driver ?
Would a crash on that policy affect your wife's car insurance ?



skyrover

12,674 posts

205 months

Monday 8th February 2016
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It's called "fronting" and it's illegal

Sir Bagalot

6,486 posts

182 months

Monday 8th February 2016
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And no one on PH ever does anything illegal do they.....

We've just been through this.

18 yr old. Citroen C1. Black box. A shade over £1K. Added myself onto policy and it saved £250yes

V8RX7

26,905 posts

264 months

Monday 8th February 2016
quotequote all
skyrover said:
It's called "fronting" and it's illegal
I've heard of fronting but if the child is declared as the main driver I can't see how it's fronting, equally if the child is the main driver I can't understand the insurer accepting the policy in the adult's name nor giving circa 70% discount.