Insurance for a new driver...any tips?
Discussion
My son is about to start driving lessons and has earmarked a car to buy - nothing special, a 1989 1.1 Fiesta Ghia. Now comes the tricky bit - insurance. Taking out new insurance himself results in several laughable quotes from uninsurable to around £2K (we live in a Wiltshire village and the car is to be garaged)!
An alternative is to insure the car myself and put him down as a named driver, but one insurer told me that companies have rumbled that one and set the premium to the age of the youngest insured driver.
This is why so many drivers take a chance and drive without insurance (the fine's cheaper than the insurance) with the result that the premium for the rest of us increases year on year (mine rose by 10% compared to last year, which the company said they were 'pleased with'!).
If, however, new driver insurance was affordable and perhaps geared to taking further post-test lessons (Pass Plus is one I think) with appropriate realistic discounts, then maybe we could all get down to some realistic premiums.
Perhaps a PistonHeader in the business might care to comment?
An alternative is to insure the car myself and put him down as a named driver, but one insurer told me that companies have rumbled that one and set the premium to the age of the youngest insured driver.
This is why so many drivers take a chance and drive without insurance (the fine's cheaper than the insurance) with the result that the premium for the rest of us increases year on year (mine rose by 10% compared to last year, which the company said they were 'pleased with'!).
If, however, new driver insurance was affordable and perhaps geared to taking further post-test lessons (Pass Plus is one I think) with appropriate realistic discounts, then maybe we could all get down to some realistic premiums.
Perhaps a PistonHeader in the business might care to comment?
If you go through the usual e-insurance sites - e-sure, tesco, direct line etc you find that if you put son as named driver it works out cheaper to insure the car with 0 no claims than having him as insuring the car himself. For the first 5 years I recall its cheaper to do that than have the £2K premium reduce with no claims earned.
However....I have been the named driver since I passed my test 5 years ago. I am now looking for my own car and the insurance that goes with it, and the quotes are just plain ridiculous as the companies don't recognise that I have 5 years accident free motoring under my belt - they just see me as a novice driver.
Possibly worth considering taking the pain now for your son's benefit later - why not ask him for half, he should thank you later on when he (hopefully) has lots of years no-claim bonus built up.
Possibly worth considering taking the pain now for your son's benefit later - why not ask him for half, he should thank you later on when he (hopefully) has lots of years no-claim bonus built up.
I have had my own insurance since i passed my test, and now has 3 years NCB which lets me insure my 205gti for £500 TPFT at 22 (well, 21 when i took out the policy). I shudder to think what that would be if I had no NCB.
Personally I'd go along the route of getting your own insurance policy as soon as possible. I would never be able to own a fast car if I didn't and I expect the difference to be a lot more when I graduate and buy something better.
Endsleigh do discounts for students so they could be a good place to try (although they weren't especially good for my Land Rover or 205). Another option is to maybe get something a little more specialist. At 17 I got a Land Rover and my mate got a Spitfire which we both insured under specialist schemes from car clubs - at a lower cost than friends with metros or fiestas.
If he is going to go down the route of a conventional car then I'd go for the cheapest 3rd party only cover available and build no claims. Another advantage of this is that if he does crash then it will go down under his name not yours!
PS. I did the pass plus scheme which helped with the first year policy, i don't knwo how much it is now, but it only cost me £60 at the time and way worth a lot more with the saving! It also gives some good experience of different driving conditions like motorway driving (which should be assessed in the test anyway.....)
Personally I'd go along the route of getting your own insurance policy as soon as possible. I would never be able to own a fast car if I didn't and I expect the difference to be a lot more when I graduate and buy something better.
Endsleigh do discounts for students so they could be a good place to try (although they weren't especially good for my Land Rover or 205). Another option is to maybe get something a little more specialist. At 17 I got a Land Rover and my mate got a Spitfire which we both insured under specialist schemes from car clubs - at a lower cost than friends with metros or fiestas.
If he is going to go down the route of a conventional car then I'd go for the cheapest 3rd party only cover available and build no claims. Another advantage of this is that if he does crash then it will go down under his name not yours!
PS. I did the pass plus scheme which helped with the first year policy, i don't knwo how much it is now, but it only cost me £60 at the time and way worth a lot more with the saving! It also gives some good experience of different driving conditions like motorway driving (which should be assessed in the test anyway.....)
Having had this problem, I found that ringing everybody was the best way to go, a thousand pound range of prices is normal!! Alternatively internet means you get a quote vaguely as you want it.
Also if going for your son's own insurance, investigate sticking you on as a named driver, made saved me £100 difference to have my dad on the certificate, he never drove it but still, worth looking at.
Also if going for your son's own insurance, investigate sticking you on as a named driver, made saved me £100 difference to have my dad on the certificate, he never drove it but still, worth looking at.
I was with CIS for my first insurance - however don't go thinking you can just pick up the phone and give them your credit card details, they actually send a bloke round for a cheque and bits of paper to sign! 
Though even with just one year NCB its now cheaper to insure both my cars through Footman James. (getting the NCB confirmation from CIS took an age too)
Though even with just one year NCB its now cheaper to insure both my cars through Footman James. (getting the NCB confirmation from CIS took an age too)
Thanks for the replies guys - I have phoned around and spent some time on the web and found that there are some companies that will still permit a 17 year old as a named driver, but others are stinging the more experienced driver because of the young named driver. I have done the sums and found that you may spend £1500 in order to gain £200 the next year in NCD, whereas if he is a named driver with myself as the main driver, it will cost around £700 - £800 which far outweighs the £200 NDC each year. Then once he's turned 20, he could start his own insurance.
Of course, I'd prefer him to get his own NCD - but these high premiums do not encourage this route.
Of course, I'd prefer him to get his own NCD - but these high premiums do not encourage this route.
The thing to do is find a company that specialises in younger drivers (if there are still any in business!).
You'll find that if you don't fit the risk profile that a particular company is interested in, you'll get a ridiculous quote, no matter what your personal circumstances.
For example, Churchill only like to insure older drivers in underpowered cars (generally speaking), so they won't usually quote for a young-ish driver in a decent car. (In fact, I have a couple of friends who work for Churchill and IIRC, they don't insure through the company, even with staff discount!)
When I were a lad, Eagle Star seemed to be pretty good at insuring under-20's. Don't know if that's changed, though.
As has been posted before, ring everybody - its the only way to find out for sure.
Oh, and if you go down the named driver on parents' policy route, can you afford to take the NCB hit if the worst should happen? If not, don't even consider it.
IMO, if the new driver has their own policy and NCB to build up, (a) it makes life easier in the future and (b) gives that extra incentive not to have an accident (if any were needed)
You'll find that if you don't fit the risk profile that a particular company is interested in, you'll get a ridiculous quote, no matter what your personal circumstances.
For example, Churchill only like to insure older drivers in underpowered cars (generally speaking), so they won't usually quote for a young-ish driver in a decent car. (In fact, I have a couple of friends who work for Churchill and IIRC, they don't insure through the company, even with staff discount!)
When I were a lad, Eagle Star seemed to be pretty good at insuring under-20's. Don't know if that's changed, though.
As has been posted before, ring everybody - its the only way to find out for sure.
Oh, and if you go down the named driver on parents' policy route, can you afford to take the NCB hit if the worst should happen? If not, don't even consider it.
IMO, if the new driver has their own policy and NCB to build up, (a) it makes life easier in the future and (b) gives that extra incentive not to have an accident (if any were needed
) Ah yes, some points I did miss on my original post.
Adding parents to my insurance does noticibly cut insurance premiums (unless tha parents have appauling driving records i guess!) I have had both my parents on mine since I began driving (my mum will NEVER drive any of my cars!)
and as has already been said several times - spend ages ringing around, it'll be worth it.
Adding parents to my insurance does noticibly cut insurance premiums (unless tha parents have appauling driving records i guess!) I have had both my parents on mine since I began driving (my mum will NEVER drive any of my cars!)
and as has already been said several times - spend ages ringing around, it'll be worth it.
egomeister said: I have had my own insurance since i passed my test, and now has 3 years NCB which lets me insure my 205gti for £500 TPFT at 22 (well, 21 when i took out the policy). I shudder to think what that would be if I had no NCB.
My brother did a similar thing and now has a Mk3 Golf GTi fully comp for £750 with AXA online (On the phone they quoted £900
) and he is 21 as well with 3 years NCB. I've got no NCB but 1 year as named driver and it costs me £1001.34 fully comp with no excess or £1034 TPFT!!! for my 205 diesel. theaa.com sure have funny ways of working out their costs....
I got free ins with my first car (corsa SXi) but afterwards I shared the pain with my dad & now I have a (nearly) race prepared Mini 1293cc with 3 yrs NCB @ £585 fully comp - My advice is to try Tesco Online - 5% discount & even though I called almost everyone in the phonebook they were still best (no excess either!)
Why is the quote so high?! I have a 1994 1.3 Fiesta and the quote is £950. Thats third party fire and theft and I am 20 with no no-claims discount. I am insured through elephant.co.uk
They also run a scheme where you pay a reduced rate but only pay for 11 months cover. At the end of this period they award you [hopefully!] with a years no-claims discount. This allows you to build it up a little quicker.
My advice would be to stick out the premiums, it is worth it in the long run, as your son will build up a no-claims discount himself. And if you do have to make a claim consider the options. On a old ford it is often cheaper to do the repairs youself than claim on the insurance and have the premium goes up!
Hope that is helpful.
They also run a scheme where you pay a reduced rate but only pay for 11 months cover. At the end of this period they award you [hopefully!] with a years no-claims discount. This allows you to build it up a little quicker.
My advice would be to stick out the premiums, it is worth it in the long run, as your son will build up a no-claims discount himself. And if you do have to make a claim consider the options. On a old ford it is often cheaper to do the repairs youself than claim on the insurance and have the premium goes up!
Hope that is helpful.
minimax - go on, you know you want to sign up to www.minispecial.com! Nearly 10 people have so far! OK, more than 5 people have so far! OK, 6. 
robp said: Why is the quote so high?! I have a 1994 1.3 Fiesta and the quote is £950. Thats third party fire and theft and I am 20...
Well the lad is a learner, he is only 17 for a start.
Having had 4 teenagers go through this process I know the feeling of being "ripped-off" by the insurance complanies, however the reason you are being quoted such high figures is down to 3 things, i) your son is (obviously) male - girls are cheaper to insure, ii) The car is a 1.1, try to get a car under 1000cc as a learner car until he has passed his test e.g. 950 Fiesta, Citroen AX 950 Metro or something, and iii) The car is a Ghia!
In fact the 2K you quoote does not surprise me (been there done it). You should get down to around £1,250 if you get something "smaller"! Rich...
Try Bell Direct... they have an "accelerator" scheme... you buy insurance in 9 month bloks (instead of the usual 12), but they reward you with 1 years NCB (assuming you don't hit anything)... check out the implications, since you may HAVE to stay with them for it to remain valid.
Otherwise, Tesco, Elephant or CIS are probably the best options...
Otherwise, Tesco, Elephant or CIS are probably the best options...
Wolosp,
As mentioned by podie, Bell Direct. I recall using these people when 17-18 and was paying less than most of my friends.
You may also want to ask them the price difference betwean the 1.1 ghia and 1.1 l, from what I rememeber the ghia put the insurance up another group?! and for what exactly, electric windows and a sunroof....
My parents were never hot on the idea of insuring the car on my behalf. Firstly because your not really meant to. But also because in the event that I had stacked it, once I became a named driver they werent willing to protect NCB.
--Mark
As mentioned by podie, Bell Direct. I recall using these people when 17-18 and was paying less than most of my friends.
You may also want to ask them the price difference betwean the 1.1 ghia and 1.1 l, from what I rememeber the ghia put the insurance up another group?! and for what exactly, electric windows and a sunroof....
My parents were never hot on the idea of insuring the car on my behalf. Firstly because your not really meant to. But also because in the event that I had stacked it, once I became a named driver they werent willing to protect NCB.
--Mark
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