Teenage motor insurance nightmare

yebaws

My 19 year old daughter has just totalled her car by backending somebody on the motorway in stop start traffic. Fortunately, nobody was hurt and the lady she crashed into was very reasonable. My daughter only had TPFT insurance (I told her to get fully comp, but that's another story), but there will be a claim against her from the other driver.
She's a full time student and is living at home during the summer holidays and needs a car to get to her summer job. I called our insurers (Budget) today to ask about putting her as a named driver on my wife insurance (1 litre engine Suzuki). They said that we would need to cancel existing policy (about £250 fully comp for my wife and me as a named driver) and take out a new one with our daughter as a named driver @ £3300. Needless to say, she may as well get a taxi to work, or not work at all.
This only needs to be until mid September time, as she's back to uni then and won't need a car. I didn't actually ask about how much it would have cost to just put her on for a month and a bit, but I'm guessing a bit more than the pro rata rate, if it was even possible to do this, which I don't think it will be.
I'm also thinking ahead about her getting another car and her own policy again at some point in the future. How long does it take before premiums start to come down a bit after an accident? And does it matter whether she has been driving or not? (If she was just not to drive any car for 6 months, would she end up paying more for a new policy than if she had been driving - without crashing - as a named driver for that period?
And I'd be grateful to hear about anybodies experience of PAYG insurance, which might be the best bet for her at the moment.

Would be particularly useful to hear from anybody in the industry. The way these things are worked out seems pretty random and opaque to the rest of us.

Thank you in advance

WellKnownSid

Pay as you go works fine - we’ve used it for learners and also for newly qualified gaining experience. Add-on insurance seems generally cheaper because the car is already insured in its own right.

Don’t know about prices post accident but most are just an app click away to find out. Veygo (Admiral) was always quite cheap and Cuvva was too (but only cars under 20 y/o).

Car_54

yebaws said:

 And does it matter whether she has been driving or not? (If she was just not to drive any car for 6 months, would she end up paying more for a new policy than if she had been driving - without crashing - as a named driver for that period?

It won't matter. Insurers have no way of checking whether someone has been driving - unless they've managed to have an accident or conviction!

prettyandfluffy

yebaws said

How long does it take before premiums start to come down a bit after an accident?

Whether she is seeking a policy in her own name or to be added to someone else's as a named driver, the accident will have to be declared.  At the moment most insurers are asking for the past 5 years motoring history.

Be aware that if she has an accident whilst driving as a named driver on someone else's policy (you suggested your wife's), then the policyholder - your wife - will have to declare that, too and will probably have to pay an increased premium.  I'd be inclined to let your daughter use public transport.

yebaws

Thanks for comments. Best way worked out to cancel our existing policy and take out a new one that was more realistic with daughter as named driver. £470 fully comp in the end.

Public transport not an option where we live unfortunately.

And PAYG insurance won't touch you - regardless of age or experience - if you've had an accident in the last 5 years!

Goudy

As already mentioned, it's usually 5 years that insurance companies want to know about convictions and accidents and they do take into consideration driving history in the way and that way is insurance history.

No claims discounts will be considered with any future premium.
The discount is transferable between between companies and it's usually accepted with a year or two break in dates. 

In 5 years the claim might not need declaring, so won't be considered but the lack of NCD built up on her own policy is probably going to hurt just as much, if not more.

A claimless 5 years motoring is worth around 60% discount which she will miss out on if she continues to be a named driver on someone else's policy.

That's not the whole story, there are the years and discounts in between.
4 years is 50%
3 years is 40%
2 years is 30%
1 years is 20%
Add it all up over those 5 years and it's a fair chunk of money.

In the short term, if she is just driving your car occasionally it makes sense to add her to your insurance though she won't qualify for any discount, only you as you are the policy holder.
Insurance companies won't take any notice of your record, even with her as a named driver when it comes to buying her own policy in the future.

Just as you might qualify for the discounts, you also take risks to your own NCD as already mentioned, if you have to claim with her as a named driver for whatever reason, then in future she will again have to declare that within 5 years.