Young Driver Insurance Cap

dacouch

flea72 wrote: »

Have just insured DD today on an 11yr old KA. Its cost us £1200 and thats on a provisional licence as she hasnt passed test yet.

We did consider waiting til she passed her test, but quotes were coming in at £2.5k (companies with bad reviews) or £3.5k (well known companies)

Having spoken to insurance company, once she passes test, the premium wont rocket, she just needs to pay an amendment fee of £50 to show change of licence

Am in no rush for her to pass as the longer she is chaperoned, the more NCB she can build up, before going it alone and renewal, which hopefully will bring prices down a bit, or similar to currently paying, rather than the £2-3k ones

Make a note of the persons name and date/time of the call as it's not unusual for the quote staff to say anything to get the business on the books as many are on commission or targets.

victorias_dad

my sons premium as a provisional license holder was £ £2,400, with a full license £9500, come on guys do you really think £9.500 is a fair quote?

dacouch

victorias_dad wrote: »

my sons premium as a provisional license holder was £ £2,400, with a full license £9500, come on guys do you really think £9.500 is a fair quote?

It's a price that reflects the chances of him having a claim. If it was not then other companies would be offering a lower price to gain the business.

Insurers sell Insurance to try and make a profit, they price their premiums accordingly. They're not there to be fair or provide a service to the community.

The typical net profit margin for an Insurer is circa 5% on a premium, this would include your son's £9500 premium

The only way young drivers premiums will reduce is through more training, restrictions when they first pass their test eg no passengers at night and ultimately reducing the frequency and value of their claims. The only way this will happen is through changes in the law.

Capping young drivers premiums will just result in no insurers offering cover so no young drivers could drive.

The only other alternative is the government subsidising their premiums, but this will only be popular with people whose children are coming up to driving age.

forgotmyname

Curious as to what cars and postcodes your putting to get £7000 quotes..

£9,500 may not be a fair quote, But it maybe small change compared to a claim if they have an accident.

Is it fair that i have a long claim free record but have to pay nearly £500 a year?

YoungBusinessman

First car was 1.4 206. Paid £3,000 to insure it at 17 when I passed. Now 21, 4 years driving behind me, 3 years no claims(had a 2 month break where only used workvan, should have kept it running but hey ho) and I am now getting quotes on 1.6, 1.8 litre cars for £300 odd. It soon gets easier. Can't see where £7000 is minimum, have you tried firms that don't come up on search engines? Put in highest excess you can that will bring it down. Keep mileage down, get it parked offroad at night, add older drivers. You will find it cheaper.

worried_jim

YoungBusinessman wrote: »

get it parked offroad. You will find it cheaper.

Mine is cheaper for parking it on the road!

iolanthe07

When you witness the mad stupid things some young people do when they get behind the wheel of a car, you can see why their premiums are so high. It's a shame that the innocent suffer along with the guilty, but insurance is all about risks and statistics. In my opinion no one should be allowed behind the wheel of a car until they are 20 - that should weed out most of the recklessly immature.

xmodz

iolanthe07 wrote: »

When you witness the mad stupid things some young people do when they get behind the wheel of a car, you can see why their premiums are so high. It's a shame that the innocent suffer along with the guilty, but insurance is all about risks and statistics. In my opinion no one should be allowed behind the wheel of a car until they are 20 - that should weed out most of the recklessly immature.

that is not true, I would say the majority of the young drivers are safe

I wouldnt even think about breaking the speed limit or acting stupid on the road.

notanewuser

worried_jim wrote: »

Mine is cheaper for parking it on the road!

Most are (since thieves started breaking into houses to steal the cars off driveways ).

forgotmyname

xmodz wrote: »

that is not true, I would say the majority of the young drivers are safe

I wouldnt even think about breaking the speed limit or acting stupid on the road.

Your in a minority i think. Pay the insurance and dont crash and it goes down. We all started there.

When i were a lad zzz...zzz.. My little 1100cc base model car which couldnt have had anything less and still be called a car was £200 a year.
I bought a sporty car next with a huge 1300cc engine.. £800 please...
Even they laughed when the quote came in.

£1500 car £800 to insure. This was in the 80's

So doesnt seem that dear to me.