Motor Insurance. Complex Problem If you like it

murphydavid

Hi
My daughter asked me a question and its too hard for me. I wondered if someone would like to take up the challenge.

My Daughter is under 25 and has Motor insurance with 2 years no claims. Her partner is over 25 and is insured as second driver for her (their) car. I suppose they will eventually have a car each. Soon the insurance comes up for renewal. (Option 1.) A quote for my daughter under 25 with 3 years no claims and partner as second driver is more expensive than (Option 2.) Quote for her partner over 25 with no no claims and her as second driver.

So this year it would be financially better for them if they took Option 2. However the question is what about the long term. Should she sacrifice her no claims? Also I believe that after she is 25, being a women, she will get cheaper insurance than him (though the EEC is trying to change that). My gut feeling is that if they take the more expensive option 1 they will be better off in the longer term?

Also I got to thinking about me own situation. My wife and I have the situation where I am first named on the insurance for both cars I get full no claims and hope to keep it that way. If I made my wife first named and took the susequent loss of no claims discount would my insurance eventully become cheaper and thus recoup the loss and then gain some?

scheming_gypsy

If they take the cheaper option you daughters no claims will remain there for about 2 or 3 years. Might as well take the cheaper option and then review it next year but just make sure she takes over 1 year so not to lose her discount

marble

The only thing to watch out for is who is listed as the main driver on the policy. Many companies assume the policy holder is the main driver (and owner!) of the car. If your daughter drives the car to work every day, then an insurance company could argue she is the main driver, not her partner. Of course, the chances of this causing any problems is minimal, but always worth bearing in mind.

As to your situation, you have two lots of no claims bonsu in your name? Many insurance companies allow you to transfer it between yourself and your wife. Also look into 2nd car policies, many will mirror your bonus for yor wife (to give her maximum immediatly).

Al