Company Car for teen driver, cheaper insurance?

savercol

Whilst listening to the radio recently a Father told how he had purchased a car through his company and put his teen daughter as a driver. It was under £1500 including a decent car. Unfortunately the presenter didn't ask him to elaborate on this. Anyone know how it's done? I'm self employed and so can purchase a car for business for my Daughter.

Lum

This likely only works for large companies. They will have a gigantic policy for, say, 10,000 cars and 25,000 drivers, so the effect of adding one 17yr old doesn't really affect the overall premium and it's too much hassle to bill individually for it. It's also possible to self-insure by posting a bond of some ludicrous amount, I think it's in the millions, then you get to deal with accidents and damage yourself out of your own pocket, entirely at cost.

I get this privilege, I can basically add anyone in my household who has had a driving licence for more than 6 months, including children. There's only me and my GF, and obviously no children, but if there were I could add them. The caveat is that if it's anyone but myself driving there is a £500 excess.

As a self employed person, your insurance will be for one car with two drivers, one of whom is a high risk 17yr old who will bump the premium up to stupid money in the usual way.

savercol

Lum. thanks for the time.
I employ four people plus Wife. I did have a company van that had insurance for all employees over the age of 21 (plus other terms). But the impression I got was it was a specific car for Daughter who may well have been a non working 'employee'.

Lum

Like I said, a large company can do that, although most will not. The costs are taken out of the person's wages and a company car is provided that goes on the company insurance with the same economies of scale and caveats as I mentioned above.

There may also be tax liability issues.