Cant get my son a loan or reasonable car insurance!

Hazzer

Hi Martin and thanks for a great site. I have used your site before but this is the first forum post so please bear with me! My son is 18 passed his test a few weeks ago got a car and now its a nightmare getting insurance! He is an engineering apprentice through a Nuclear partnership, has been banking with Lloyds TSB since he was quite young but they wont give him a £2,000 loan over 12 months to pay his insurance outright as they say he needs to be with them as an adult for a period until they decide if he can have one or not?! We have had insurance quotes of 2 up to 4 thousand pounds with a lot added on for direct debit and it is frankly I feel daylight robbery! I support fully the need to eradicate death and injury on the roads but this is not, I feelsolely all young people, and that there are just as many other age groups who drive badly?! It seems wrong to punish all young people for other peoples crimes and only serves to make it hard for young people to get started on the no claims pathway. Tescos were the cheapest quote but its still £200.00 a month. Any suggestions Martin please? Many thanks Harry Brannigan.:money:

CH27

Have you looked at the insurers who fit a box to the car to monitor driving?
If he drives well the insurance reduces.

sparklefrog

Try http://www.insurethebox.com/ my colleague at work has similar issues with her son and used this type of insurance with driving monitoring, which reduced his costs

Hazzer

Hi CH27 yes and Tescos are the cheapest! Thanks for trying though. Kind Regards Hazzer.:beer:

Hazzer

Thanks Sparklefrog. Kind Regards Hazzer.:beer:

Buzby

If you have a motor policy, add him as a named driver to yours, as this will help him get a foot in the door. This won't help him insure his car (when he gets it) and I'm not suggesting you 'front' for him, simply ease the path as your insurer may be happy to treat his use of yours as counting to his NCD.

19lottie82

i'm afraid this is the norm for young drivers these days.

is it really so much more expensive to pay off the insurance in installments? im pretty sure the apr on this would be cheaper than a 2k loan over 12 months. (I'd guess about 20-30% apr, which would equal £200-300)

lippy1923

I sympathise with your sons situation. It sucks!
Could he try getting a 0% credit card and pay using that? There could be an additional fee (£5) or something small, but its still cheaper than paying monthly. And it will help build him a credit score at the same time
If hes not accepted though, perhaps you could get one in your name and add him as an additional card holder.

chanz4

The reasons banks / insurance dont like them is hes likely to smash the car up or default. Boys whern turn 18 with a license feel untouchable when driving.

DCFC79

chanz4 wrote: »

The reasons banks / insurance dont like them is hes likely to smash the car up or default. Boys whern turn 18 with a license feel untouchable when driving.

True, they like to show off which can end up very nasty.

cajef

Hazzer wrote: »

I feelsolely all young people, and that there are just as many other age groups who drive badly?! It seems wrong to punish all young people for other peoples crimes

So the fact that young drivers under 21 are twice as likely to have an accident in the first few years after passing their test has nothing to do with it.

Insurance is based on risk and that is why it is far more expensive for young drivers to get insurance than older people, they are a bigger risk.