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Young Person Car Insurance Claim

Hi all, I would love some advice please. My son who recently turned 18 and has been driving for only 2 months got into a car accident through no fault of his. The other party has admitted liability. Unfortunately, his car was written off and we are currently waiting to see how much the Insurance company will give him for it. I understand that even though my son was not at fault the claim will affect the cost of his insurance in the future, but it not clear as to how much. My son has been looking into replacing his car and his current insurers have said that he can transfer his current policy to a new car. However, he has been running quotes for other insurers to get an idea of the increased amount he will have to pay and he has yet to find someone who will insure him. So, it may be that even if he replaces his car now and transfers his existing insurance, he might not be able to get insurance next year when it comes to renewing it. My son needs a car to get to work, otherwise he will lose his job, he does not work on a bus or train route. Has anyone had a similar things happen and can anyone offer some advice or insight into this matter? Many thanks.

Comments

  • ButterCheese
    ButterCheese Posts: 112 Forumite
    100 Posts Second Anniversary
    Might be easier to take the hit and keep with current insurance company so at least he's insured.  Bear in mind that next year he will have another years' driving experience on his record which might mean, by the time next year comes, he will be accepted for other policies. 

    With regard to the new car - I always advise people to search for (5 or 6) cars that they can afford, and compare quotes for each car.  i.e. don't get the car you like and THEN see how much it is to insure.  At that age, where prices will be around the 2 grand mark, you haven't got the luxury of getting the car you want; you are limited to less popular cars if you want cheaper insurance.  For example, my nephew wanted a small car and because small cars are often driven by new drivers, and new drivers make up a higher percentage of claims, the smaller cars often command much higher premiums.  He ended up getting an old range rover and paying £900 instead of £2000.

    In summary, these days young drivers will never get a good deal and you may just have to go with whatever policy you can get if public transport is not an option.  To throw in a curveball, is a moped an option?  Our 16yo pays £420/year so although not ideal, is best of both worlds; gives him his own transport whilst being much cheaper than getting a car at 17
  • Mark_d
    Mark_d Posts: 1,622 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 4 October at 9:46AM
    OK so your son will use the insurance payout to buy a new car and get his insurance transferred.  His existing insurer may continue to insure him at renewal time but this can't be guaranteed.  If he names you as a names driver on the policy, this might reduce the risk associated with your son's car.
    If your son's insurer refuses to renew his policy, then he might be able to get a lift to/from work with a colleague.  Cycling all or part of the way might be an option.  But the most realistic options are for him to move to accommodation nearer is workplace, or to change jobs.  It's not ideal but car insurance for an 18 year old is expensive as it is, and would likely be unaffordable if you can get a quote for an 18 year old male who's had a claim already.
  • ButterCheese
    ButterCheese Posts: 112 Forumite
    100 Posts Second Anniversary
    zopoll said:
    The other party has admitted liability.

    Also forgot to say - I had a scrape with another party who denied liability.  2 years on they have now admitted liability so I was refunded the excess I had to pay on my repair, and a bit more (which they said was a readjustment for the last year, when technically I was paying for a policy with an at-fault claim, when actually I should have been paying less for a non-fault claim).  I don't know if that helps
  • FlorayG
    FlorayG Posts: 812 Forumite
    Sixth Anniversary 500 Posts Name Dropper Combo Breaker
    My lodger had similar, no fault write-off after only 4 months insured. She bought another car the same as the one that was totalled and her insurance has gone up by £20 a month (so an extra £320 for the rest of this year).
    I can't see why the current insurer won't re-insure, they clearly know it wasn't his fault? But yes, they will charge a lot more
  • cw8825
    cw8825 Posts: 305 Forumite
    100 Posts Photogenic Name Dropper
    zopoll said:
    Hi all, I would love some advice please. My son who recently turned 18 and has been driving for only 2 months got into a car accident through no fault of his. The other party has admitted liability. Unfortunately, his car was written off and we are currently waiting to see how much the Insurance company will give him for it. I understand that even though my son was not at fault the claim will affect the cost of his insurance in the future, but it not clear as to how much. My son has been looking into replacing his car and his current insurers have said that he can transfer his current policy to a new car. However, he has been running quotes for other insurers to get an idea of the increased amount he will have to pay and he has yet to find someone who will insure him. So, it may be that even if he replaces his car now and transfers his existing insurance, he might not be able to get insurance next year when it comes to renewing it. My son needs a car to get to work, otherwise he will lose his job, he does not work on a bus or train route. Has anyone had a similar things happen and can anyone offer some advice or insight into this matter? Many thanks.
    Its going to depend majorly on what car he is changing to?
    The most sensible option would be that he gets the same/similar car to what he currently has and continues with the same insurer for now
    If he is quoting for a new policy,right now he will not look a good risk 2 months driving with a claim, this will be different  come renewal
  • DullGreyGuy
    DullGreyGuy Posts: 13,942 Forumite
    10,000 Posts Second Anniversary Name Dropper
    zopoll said:
    Hi all, I would love some advice please. My son who recently turned 18 and has been driving for only 2 months got into a car accident through no fault of his. The other party has admitted liability. Unfortunately, his car was written off and we are currently waiting to see how much the Insurance company will give him for it. I understand that even though my son was not at fault the claim will affect the cost of his insurance in the future, but it not clear as to how much. My son has been looking into replacing his car and his current insurers have said that he can transfer his current policy to a new car. However, he has been running quotes for other insurers to get an idea of the increased amount he will have to pay and he has yet to find someone who will insure him. So, it may be that even if he replaces his car now and transfers his existing insurance, he might not be able to get insurance next year when it comes to renewing it. My son needs a car to get to work, otherwise he will lose his job, he does not work on a bus or train route. Has anyone had a similar things happen and can anyone offer some advice or insight into this matter? Many thanks.
    Presumably its 2 months since he passed his test rather than just 2 months of driving?


    It's highly unlikely that no one will insure him, even people with terrible records can get quotes from specialist insurers who dont operate on comparison sites. If it's affordable or not is another question. Unless there is only a few weeks left on his current policy it's too early to worry about it now. Prices change daily, insurers typically review their approaches at least monthly if not more often. When he comes to renew he'll be older, the accident further behind him etc. 
  • MeteredOut
    MeteredOut Posts: 2,102 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 4 October at 10:40AM
    FlorayG said:
    My lodger had similar, no fault write-off after only 4 months insured. She bought another car the same as the one that was totalled and her insurance has gone up by £20 a month (so an extra £320 for the rest of this year).
    I can't see why the current insurer won't re-insure, they clearly know it wasn't his fault? But yes, they will charge a lot more
    How many months are in your year? :smile:
  • DullGreyGuy
    DullGreyGuy Posts: 13,942 Forumite
    10,000 Posts Second Anniversary Name Dropper
    FlorayG said:
    I can't see why the current insurer won't re-insure, they clearly know it wasn't his fault? But yes, they will charge a lot more
    Fault has nothing to do with blame but if at the end of the day do they have a net £0 outlay. If there is a third party who accepts they are to blame and they had valid insurance then its likely it will end up as non-fault but insurers dont like risk and will typically treat any open claim as a fault because there are left field things that happen that means they ultimately dont get their money back after all. 
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