Named Driver No Claims Discount Worthless with Direct Line

lisyloo

Why should Fully Comp be cheaper as with FC you can claim for your own car to be fixed??

I agree it's counter intuitive but fewer companies offer TPF&T which means there it's less competitive.
If you never intend claiming e.g. old banger you'd just scrap, then it can be cheaper to get Fully comp with a really big excess as you'll never pay the excess.

Quentin

ShotsDad wrote: »

My argument - the FSA can decide soon, is that it is misleading to say there will be a discount when it is off a wildly high premium that will say to named drivers "Now go away". The advert is not honest and would not pass the ASA but they don't regulate financial advertising. As for the 206 - this is the smallest car we could buy for him as he is 2.15m = 7ft!! That's another story.

Why should Fully Comp be cheaper as with FC you can claim for your own car to be fixed?? The whole business is not very transparent.

We found that the quote went down with me as a named driver on the Peugeot 206 even though (1) I am insured to drive it with permission anyway (2) I only drive it v occasionally.

You could also ask the train companies why sometimes first class can be cheaper than standard.

Companies make business decisions, the FSA won't be able to get them to change their pricing!

Adding mature drivers usually brings down the price (even when the policyholder os also mature!)

InsideInsurance

As said, there are two factors involved in why TPFT is higher than Comp - firstly those that insure with TPFT tend to be high risk drivers (eg young drivers) and so because the pool of money the insurer collects isnt stablised by all the low risk premiums they collect they need to further inflate premiums.

Secondly there is simply less insurers that write TPFT than Comp and so supply and demand naturally says premiums will be higher because supply is restricted

Finally, as you say, the difference between TPFT and Comp is predominately AD cover to your own vehicle. AD to Ph vehicle makes up a relatively small proportion of claim costs. If you paid £2,000 for your son's car and he has an accident where he hits a TP car carrying a family of 4 and writes off his car. Realistically settlement value for the car is probably £1,500 from which at least a £500 excess is deducted and so they'll pay £1,000 for the AD element.

£1,000 wouldnt even cover the cost of emergency treatment for the occupants of the other vehicle let alone the cost of compensation for their injuries nor the solicitors dealing with each of their cases. Even with relatively minor injuries then 8 years ago we'd have put a case reserve of £25,000 on the TP claims -v- the £1k for your AD claim

forgotmyname

TPFT is dearer because they assume you dont care about the car so will drive like an idiot.

Bumps and scrapes wont bother you as long as it keeps going. Also will you service it and repairs faults or keep driving it in a dangerous condition?

Small cars are not always cheaper to insure. I would imagine a 206 would be quite high risk.