Manufacturer based ‘free insurance’

Wonka_2

18yo has recently passed her test and we’re re-evaluating the household fleet.

whilst I’m generally against ‘new’ and haven’t had a ‘new’ car for over 20yrs I need to look at all options

All the Google searches are coming back with pre-Covid results so are any manufacturers (or dealer groups/conpanies) doing all-inclusive deals any more before I start visiting all the manufacturer sites independently ?

Brie

I thought all these sorts of deals were only for drivers over 25.  I can't imagine any company is going to want to underwrite a new driver, particularly one so young.

Wonka_2

Brie said:

I thought all these sorts of deals were only for drivers over 25.  I can't imagine any company is going to want to underwrite a new driver, particularly one so young.

Back in 2019 Citroen/Peugeot were offering to 18yo’s - given no other responses then I’ll start searching tomorrow and see what, if anything, is around now 

Car_54

Wonka_2 said:

Brie said:

I thought all these sorts of deals were only for drivers over 25.  I can't imagine any company is going to want to underwrite a new driver, particularly one so young.

Back in 2019 Citroen/Peugeot were offering to 18yo’s - given no other responses then I’ll start searching tomorrow and see what, if anything, is around now 

Peugeot's "Just Add Fuel" scheme - which seems to have disappeared - was probably the highest-profile of these "all-inclusive" schemes.

However, when it was still available, the small print said that the payments "will include a contribution towards the cost of your motor insurance which is based on the age of the youngest driver on the policy, your residential postcode and model selected. "

Sorry, OP, I don't think you're going to find a scheme to suit.  

Aretnap

Notoriously, a good few years ago Direct Line got badly burned by underwriting a the years free insurance with a new Citroen Saxo deal, with no limit on age, driver experience, driving record etc.

At the time the Saxo was a car mainly driven by old ladies and they priced on the assumption that this would continue to be the case.

Instead teenagers (or their parents) across the country found that it was cheaper to buy a new Saxo and get three years free insurance than it was to buy a more traditional old banger and insure it themselves. Soon enough, horribly modified Saxos became the car of choice for boy racers . It cost Direct Line an absolute fortune.

So now insurers have learned their lesson and "free insurance" deals come with limits on age and claim/conviction record. Good luck with your search, but I suspect that you'll be disappointed.

Wonka_2

Aretnap said:

Notoriously, a good few years ago Direct Line got badly burned by underwriting a the years free insurance with a new Citroen Saxo deal, with no limit on age, driver experience, driving record etc.

At the time the Saxo was a car mainly driven by old ladies and they priced on the assumption that this would continue to be the case.

Instead teenagers (or their parents) across the country found that it was cheaper to buy a new Saxo and get three years free insurance than it was to buy a more traditional old banger and insure it themselves. Soon enough, horribly modified Saxos became the car of choice for boy racers . It cost Direct Line an absolute fortune.

So now insurers have learned their lesson and "free insurance" deals come with limits on age and claim/conviction record. Good luck with your search, but I suspect that you'll be disappointed.

I lived through that - but already with a car whilst younger friends bought Saxos (and AX’s before that) 

As you suggest I suspect it’s not an option now but looking at every avenue and wondering how everyone else manages a £2.5k+ insurance bill 

Goudy

I believe those deals are long gone.
Citroen has a habit of cocking up every now and then.

The all inclusive insurance was one, but later they started offering very attractive PCP deals on their small cars which typically attracted thousands of customers.
Trouble was the cars GFV's were too high, which hammered the used values even further.

It was no bother to those that kept them at the end of the contract, but anyone trying to trade them were looking into a black hole so most handed them back and Citroens Finance arm got hammered at the auction. 

As for new/nearly new, newer cars usually tend to attract lower premiums anyway.
Most have better safety kit than older cars, things like active braking systems, lane departure warning, blind spot monitoring etc as standard and that tends to reflect in the premiums.

Our nephew was in a similar position recently and it was suggested he look at something much newer then the usual used first car line up, which to be honest were all bloody expensive anyway.

It's obviously a trade off, insurance cost vs car, but the new/nearly new cars quotes were considerably lower.
He pushed is budget a little and got a latest model car but with a lower premium that should last him far longer (touch wood).
So it's worth doing a few calculations first.

DullGreyGuy

Aretnap said:

Notoriously, a good few years ago Direct Line got badly burned by underwriting a the years free insurance with a new Citroen Saxo deal, with no limit on age, driver experience, driving record etc.

They did screw up very badly and got burnt even worse but let's be fair, there was an age limit on the "GTI" model (was it VTS in Citroen language?) of 21 

Goudy said:

Citroen has a habit of cocking up every now and then.

Citroen didn't cockup at all, in the above case they were paying circa £150 per year flat rate wholesale price to Direct Line Group for each vehicle sold. Without doubt they sold vastly more cars as a consequence and DLG's massive losses were DLG's problem not Citroens. 

I bought my Citroen for exactly that reason, I wanted a 106 but they were offering 1 years free fuel whereas the Saxo came with 2 years free insurance worth about £3k at the time and so more than half the price of the car. 


All-In-One lease arrangements are not the same thing in many cases, they normally are driver rated and so a 18 year old driver your payments go up. In principle there is nothing stopping anyone offering long free insurance but insurers have learnt from DLG's mistakes and are much more restrictive on terms and/or charge the manufacturer based on the insured meaning the manufacturers themselves decide to be restrictive.