Insurance options for a 17 year old

[McSam]

brickwall said:

Give 'em your GCSE results (I may get flamed for this, but I reckon (particularly among young males) there's an inverse correlation between academic performance and crash risk), voluntary curfews (less as a risk mitigator more as a signaling mechanism) etc. More accurate risk profiling is fairer for everyone.

I like it! Though to keep this idea alive, it's a good job I didn't tell my insurers I got 8 A*s and 2 As before binning the Mondeo at 17...

Oh - and that'd be the two-litre Mondeo I insured from passing my test at 17, for those saying that even 1.4 is too big to be possible!

[brickwall]

McSam said:

brickwall said:

Give 'em your GCSE results (I may get flamed for this, but I reckon (particularly among young males) there's an inverse correlation between academic performance and crash risk), voluntary curfews (less as a risk mitigator more as a signaling mechanism) etc. More accurate risk profiling is fairer for everyone.

I like it! Though to keep this idea alive, it's a good job I didn't tell my insurers I got 8 A*s and 2 As before binning the Mondeo at 17...

Oh - and that'd be the two-litre Mondeo I insured from passing my test at 17, for those saying that even 1.4 is too big to be possible!

Sure, there are always exceptions to the rule...;)

But here's the crucial thing: the minute you started being insured, insurers can start collecting info on you that creates a more accurate risk profile. Namely, they record when you binned the Mondeo. The second and subsequent years' quotes will be increasingly accurate as to your risk profile.

But it's that first quote that's the issue.

Of course, the real problem is that the whole insurance industry is based on an adaptive expectations model. Does anyone out there have a decent model for rational expectations?

[Liquid Knight]

Once you've passed you test (well done if you have already by the way you are now property of the nanny state), do the pass plus and join the I.A.M. Then get a Thatcham alarm/immobilizer/steering lock cctv for your garage with at least five thatcham approved padlocks on the door and two ex-Royal Marine security guards. Motion sensetive floodlights in every corner of your property, more cctv on the outside of the building. Fit a tracking device to the car and as an app' on the drivers phone. Have the car fitted with parking sensors front and rear, F.O.D Radar, GPS controlled engine management so the speed limit can not be exeeded without the cruise control overiding the driver and finally coat the car with a special bioethical impact resistant material (cotton wool).

Have a tuck operation, implants and a course of HRT.

Then get a quote.

[Mark_Karting]

I'm having similar problems. I've finally got learner specific insurance, but looking for me as a named driver on my mums car after I passed my test, the price is extorcionate. It would be c£200 for her with her 2 crashes on record, another £50 adding my dad with points on his licence then to add me it's another £1500+ even with a 5000 mile limit!!

[Liquid Knight]

Mark_Karting said:

I'm having similar problems. I've finally got learner specific insurance, but looking for me as a named driver on my mums car after I passed my test, the price is extorcionate. It would be c£200 for her with her 2 crashes on record, another £50 adding my dad with points on his licence then to add me it's another £1500+ even with a 5000 mile limit!!

That has to be a good case of age discrimination and nothing more.

[ZOLLAR]

Mark_Karting said:

I'm having similar problems. I've finally got learner specific insurance, but looking for me as a named driver on my mums car after I passed my test, the price is extorcionate. It would be c£200 for her with her 2 crashes on record, another £50 adding my dad with points on his licence then to add me it's another £1500+ even with a 5000 mile limit!!

New driver named on a parents policy, that would look like fronting to an insurer so they would load the premium.

[deveng]

LeeThr said:

Thats for a ford KA not your avaerage "well bangin modified boy racer mobile init", the OP stated a vauxhal astra, which is a bit more common with young drivers. Which will attract higher premiums.

My point is that insurance doesn't have to expensive. Sell the astra and buy a ka, if the ka is more expensive then youll save a fortune in insurance.

[LeeThr]

Opara said:

If they can base quotes on age,gender etc than why not ethnicity or religion? If it's all to do with statistics and profiling, and it could be proved for example that Religion-X had a disproportionate amount of claims then could they charge more?

valid point but i think you would run into racial or discrimination issues there unfortunatally =/

[Tom H]

LeeThr said:

Opara said:

If they can base quotes on age,gender etc than why not ethnicity or religion? If it's all to do with statistics and profiling, and it could be proved for example that Religion-X had a disproportionate amount of claims then could they charge more?

valid point but i think you would run into racial or discrimination issues there unfortunatally =/

Well there was a insurer called 'Salaam Halal Insurance', but due to high loss ratio they went out of business and lack of new business business. I but assume that this was not a requirement to be Muslim to have had a contract with them therefore not racial discrimination, That said if you were not Muslim I'm guessing that you wouldn't necessarily take cover from them.

For the record I wouldn't have a problem if their premium and cover was better than anyone else's as they would have had to have been FSA regulated etc

See here .... http://www.insurancedaily.co.uk/2009/11/20/islamic...

[jonno990]

Have you tried these http://www.coverbox.co.uk/ ? I was speaking to a neighbour the other day who has just passed his test. He was getting quotes of around 2k down to £500 with a limited mileage of 5k I think. he is in his 30's though.
In fact does anyone have any experience of them?
I know they fit a tracker, is this always activated? (monitoring your speed maybe)

[ZOLLAR]

Opara said:

If they can base quotes on age,gender etc than why not ethnicity or religion? If it's all to do with statistics and profiling, and it could be proved for example that Religion-X had a disproportionate amount of claims then could they charge more?

Those statistics don't exist because no insurer records ethnicity or religion when a claim is opened.

[megatron]

ZOLLAR said:

megatron said:

Innocent until proven guilty!
I fully understand a degree of a price hike on young drivers insurance due to the high risk, but its going too far now. Personally i cant afford to run a car over my summer break from university even if it is necessary for me to due so as i find public transport rather difficult with a tool box and a variety of hedge trimmers and power tools. This means a total re-think of my summer work is in order.

Stop being a typical bigot and come down from your high horse!

So what do you suggest is done?, insurance companies can't force prices to stay low otherwise they wouldn't have the money to pay claims that policyholders are responsible for, the fact is young drivers are high risk and thus have to pay the premium associated with a high risk driver.

Also i'm not a bigot as i'm not intolerant to peoples opinion if it differs from mine, i'm stating a fact so lets keep the conversation on a respectable level rather than allowing it to descend into name calling.

Just try some quotes as a young driver on a typical car a young driver can afford to drive. £1500 worth of hatchback. You will then see the extent of the problem. I stated i understand the price hike for young driver however the prices have gone too far,(around 80% of the average 17-18 yo males income). Its pricing many people off the roads not allowing them to gain the experience necessary to become the competent drivers that i`m sure many of the posters on PH are. I believe that it will only cause more problems in the future as many drivers wont be able to afford to run a car for several years after passing a test. We all know the best thing to do is hit the ground running with driving but the insurance companies are not letting people (especially males) even near the wheel of a car.

[sidewaysthough]

I dont know if its any help at all, but the Astra is a car that is seen as "Cool" by many younger drivers. Could you sell it privately, and get something a bit different.

When passing my test, I went on the lookouts for the usual, 1.2 corsa, fiesta 1.3 etc, but found it cheaper (by half) to insure a 309gti. Unpopular car, I then went on to a zx estate, and a 406 estate. Cheaper to insure than the lil supermini's, as they tend to be the youngsters choice. I couldnt quite believe it, worth having a look at and seeing?

[Soovy]

Think a bit different.

Astras, Corsa and Saxos are expensive because they're bought by youngster who then wreck them and cause death and destruction.


Sell it, buy him a Saab, or a Volvo.


Better cars, safer cars, and much much much cheaper to insure.

[ZOLLAR]

megatron said:

Just try some quotes as a young driver on a typical car a young driver can afford to drive. £1500 worth of hatchback. You will then see the extent of the problem. I stated i understand the price hike for young driver however the prices have gone too far,(around 80% of the average 17-18 yo males income). Its pricing many people off the roads not allowing them to gain the experience necessary to become the competent drivers that i`m sure many of the posters on PH are. I believe that it will only cause more problems in the future as many drivers wont be able to afford to run a car for several years after passing a test. We all know the best thing to do is hit the ground running with driving but the insurance companies are not letting people (especially males) even near the wheel of a car.

I do alot of quotes for young drivers so i'm fully aware of the costs, you mentioned £1500 worth of hatchback , it has nothing to do with the value of the car (in most cases) its down to the risk the driver is to third parties which can go into millions of pounds.
I agree with you that price of insurance in many cases is very high however people seem to think that its all the insurers fault when mainly it isn't insurers have to pay out for claims that policyholders cause and in recent years this has been exacerbated by people making more hyberbolic injury claims.

You are right in certain circumstances that people arn't driving for years after they pass but they are then likely to be more cautious on the road and also have a higher maturity level than a 17/18 yr old thus reducing the amount of risky manoeuvres they would be willing to take and stastically thats a fact.

[Mini1275]

Tell him to do the pass plus scheme, it can knock up to 30% off of insurance costs.


ETA: I've just seen someone's posted that above.

[R12HCO]

Try admiral elephant.

Put his mum and dad and you as additional drivers. Will save a fortune. Female additionals are even better.

[McSam]

brickwall said:

Sure, there are always exceptions to the rule...;)

But here's the crucial thing: the minute you started being insured, insurers can start collecting info on you that creates a more accurate risk profile. Namely, they record when you binned the Mondeo. The second and subsequent years' quotes will be increasingly accurate as to your risk profile.

But it's that first quote that's the issue.

Of course, the real problem is that the whole insurance industry is based on an adaptive expectations model. Does anyone out there have a decent model for rational expectations?

Absolutely so thankfully, as my risk profile becomes more and more accurate, so my renewal prices decrease

Getting the first quote is the problem, as you're always heaped in with people like me who cause a write-off within a month of passing, and the insurer has no reason to assume anything other than that will happen. So:

R12HCO said:

Try admiral elephant.

Put his mum and dad and you as additional drivers. Will save a fortune. Female additionals are even better.

Here endeth the lesson. It doesn't get better than that. Admiral, two additional named drivers over 30 and below 60, preferably at least one female.

[paddyhasneeds]

Are kids statistically having more accidents than they used to?

When I started driving in 1995 my first premium was around £600 and that was on a G plate Nissan Sunny 1.4.

[va1o]

I really do think insurance companies have lost the plot.

I got a quote yesterday for a car I'm going to buy, resubmitted it on confused.com today and the price is up by £30? WTF. This makes no sense, do they even work on weekends? No details changed whatsoever. This is with Elephant.