Astronomical car insurance for 19 year old!

mark_dumpleton

Hmm. Is there any way to be a named, but main, user of a vehicle that would be insured (and owned etc) by my mum?
Have put my mum as a named driver, doesn't make quotes anywhere near the £800 I was quoted.

simon_templar_2

Young drivers have to get over this, in time the price comes down. The older you get it will be cheaper. Have patience young man!

Blue_Diamond

worried_jim wrote: »

name a female on the policy - sister perhaps ? this will bring it down a liitle bit

...Good idea - but I think this may affect NCB

cajef

If you are the main driver of the vehicle then it should be insured in your name, for someone else to insure the vehicle with you as a named driver when in fact you are the main driver is known as 'fronting' and in the case of a claim you may find the insurance will not pay out as it is in effect fraud.

http://news.bbc.co.uk/1/hi/programmes/moneybox/7052569.stm

raskazz

LeeSouthEast wrote: »

the young are a good market to target, and the insurance companies know it.

As cajef points out, the opposite is actually true. For example, the insurer I work for doesn't cover under 25's at all - they will only consider drivers under that age on referral where there is some sort of commercial significance to consider (i.e. if the policyholder holds a lot of other business with the insurer or with a significant broker).

JonBoy_SCFC

raskazz wrote: »

As cajef points out, the opposite is actually true. For example, the insurer I work for doesn't cover under 25's at all - they will only consider drivers under that age on referral where there is some sort of commercial significance to consider (i.e. if the policyholder holds a lot of other business with the insurer or with a significant broker).

if as a company you target young drivers then i would have thought there were lots of advantages - less competition is one i can think of, plus higher premiums at the same margin would be more profitable

out of interest, assuming you set the prices to accurately reflect the claims risk, what would you say are the advantages of targetting the older drivers? maybe they shop around less at renewal and you make more money in the 2nd year?

Quote

The world would be a much better place if you weren't allowed to take your driving test until you were 25 years old.



*stands back*

JonBoy_SCFC

Quote wrote: »

The world would be a much better place if you weren't allowed to take your driving test until you were 25 years old.



*stands back*

i actually agree it should be lifted to say 19 or 20, think of the extra lives that would be saved, and the extra money people would have to spend on other things

dacouch

A lot less claims than you would get from young drivers especially young male drivers and the claims they have would be many many many times less expensive.

The older driver market is highly competitive so the margins are very very small as the vast majority of Insurers target this part of the market as its low risk

raskazz

JonBoy_SCFC wrote: »

if as a company you target young drivers then i would have thought there were lots of advantages - less competition is one i can think of, plus higher premiums at the same margin would be more profitable

out of interest, assuming you set the prices to accurately reflect the claims risk, what would you say are the advantages of targetting the older drivers? maybe they shop around less at renewal and you make more money in the 2nd year?

There are of course positives and negatives to targeting younger drivers. My company mainly writes commercial motor business, niche private car, motorbikes and fleets - there simply isn't much demand for under 25's in those markets so there's not much point in chasing it. It might add a nominal amount of profit but almost certainly at the same time as introducing an unacceptable level of volatility to the portfolio.

Companies like Quinn can go after that market because they employ a very hard-nosed claims ethos, and don't have a great reputation for the way they handle claims. You've also got to factor in that not only are claims payments higher where young drivers are involved, but also that on average more claims are submitted, and more claims involve personal injury - so the costs of handling claims also increases.