Car insurance puzzle

[Jon39]

I had a feeling that two driver motor insurance policies are cheaper than single driver, so when obtaining a quotation recently, I first had a one driver quote, then edited to husband and wife.

One driver .......... = £X
Two drivers ........ = £X minus 15%.

I cannot understand how a car used by two people, has less risk to an insurer, than the same car only used by one person.
Obviously not complaining, but out of interest, can anyone provide a logical explanation.

No jokes please about my wife's standard of driving.

[Scrump]

I cannot explain it but have found even more reductions in the premium with a third named driver.

[alscar]

No doubt some clever actuaries will use statistics and claims data to justify.
This will feed through to their underwriting price models with the additional computer modelling software used.

[Jon39]

Scrump said:

I cannot explain it, but have found even more reductions in the premium with a third named driver.

Thank you. I can try that next time.

[Robertb]

I think it depends who is being added.... When we tried adding my teenage daughter to the policy of my CLS, it increased the premium by £7,500 (not a typo!)

[Scrump]

Robertb said:

I think it depends who is being added.... When we tried adding my teenage daughter to the policy of my CLS, it increased the premium by £7,500 (not a typo!)

When I was young I named my parents on my policy to lower my premium, nowadays I am named on my parents policy which lowers their premium.

[TwigtheWonderkid]

Jon39 said:

I cannot understand how a car used by two people, has less risk to an insurer, than the same car only used by one person.
Obviously not complaining, but out of interest, can anyone provide a logical explanation.

Because policies with 2 drivers (providing the additional driver is a similar or better risk than the policyholder), cost insurers less money than single driver only policies. Ultimately, that's all you need to know.

If you're asking why that should be, here are some possibilities.

1. Husband and wife on a long journey. They can share the driving, rather than one person driving tired.
2. Husband has a drink with his meal out. May still be under the limit but wife drivers home having not drunk at all.
3. Couples perhaps less likely to default on monthly premiums with 2 people running the finances, and maybe 2 incomes. Less admin for insurers.
4. If policyholder is a young driver, and additional driver is mum, when mum is driving, the young driver isn't. So overall less risk.

All or none of the above may apply, and there are probably other factors.

[TwigtheWonderkid]

Robertb said:

I think it depends who is being added.... When we tried adding my teenage daughter to the policy of my CLS, it increased the premium by £7,500 (not a typo!)

That's cheap. I got a quote for a 911 of £250, or £12500 with my son as a driver

[phil squares]

On our two-car policy, we lowered the excess to 0, which was and continues to be the cheapest way for us. It makes no sense but it is what it is!!