Car Insurance for New Young Drivers.

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JohnD
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Car Insurance for New Young Drivers.

Post by JohnD »

I’m hoping to tap into the collective knowledge of the best - (maybe I mean cheapest) - way of getting a young person onto the car insurance ladder.

Last October, on his 17th birthday, my grandson took out a provisional licence. Shortly afterwards, I went off to Spain for the winter, leaving Sam to have some driving lessons with a local driving school. When I returned in March my C5 and diesel Saxo were due for insurance renewal with LV. I asked LV about naming Sam as a provisional licence holder on the Saxo. They wouldn’t even give me a quote, so I told them I would have to find an alternative insurer. They were happy with that. With the help of GoCompare I went with One Call who insured me comprehensively with my daughter as a named driver and grandson as a provisional licence holder for £350. That I thought was very reasonable. During the past few months with me in the passenger seat, he’s added nearly 400 miles to the clock and yesterday he was over-the-moon when he passed his test.

But the euphoria evaporated this morning when I talked to the insurers asking whether they wanted to know that he was no longer a provisional driver. The upshot was that the premium will now increase by a further £626, making the premium almost a £1000.

What I now want to know is whether to pay it and have him continue as a named driver or give him the car and the V5 and let him take out a policy in his own name. What's best?

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GiveMeABreak
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Re: Car Insurance for New Young Drivers.

Post by GiveMeABreak »

Obviously the lesser fee when on a provisional was because he would of been supervised, but now he's footloose and independent, he will be deemed to be a much higher risk.

The best thing is for him to build up his own no claims bonus in his own name - insurance companies treat named drivers on other policies differently - some may take this into account when he gets his own policy - but invariably, it would be better to build up his own policy IMO.

We have a lot of sixth formers at the local school who drive a car - invariably they are older small super mini cars in order to build up a no claims. I don't think you would be doing him any favours in the long run as he will have to start somewhere, and the sooner he builds up his own NCD, the cheaper it will be and sooner he will start saving in the long run. I think it also gives them a sense of personal responsibility by having to earn that discount by careful driving...

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Paul-R
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Re: Car Insurance for New Young Drivers.

Post by Paul-R »

Make sure that your grandson is the named driver for the insurance and then try adding an older driver (usually a parent) on as well. This will very often reduce the premium. If it doesn't, try a few companies until you hit the best price.

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Michel
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Re: Car Insurance for New Young Drivers.

Post by Michel »

JohnD wrote:
09 Aug 2018, 11:23
But the euphoria evaporated this morning when I talked to the insurers asking whether they wanted to know that he was no longer a provisional driver. The upshot was that the premium will now increase by a further £626, making the premium almost a £1000.

What I now want to know is whether to pay it and have him continue as a named driver or give him the car and the V5 and let him take out a policy in his own name.


Is that all? Seriously, that's a good price for a young driver. Pay it, and let him build up his own NCB. It'll drop considerably if he keeps out of trouble for a year..

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Michel
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Re: Car Insurance for New Young Drivers.

Post by Michel »

Michel wrote:
09 Aug 2018, 14:47
JohnD wrote:
09 Aug 2018, 11:23
But the euphoria evaporated this morning when I talked to the insurers asking whether they wanted to know that he was no longer a provisional driver. The upshot was that the premium will now increase by a further £626, making the premium almost a £1000.

What I now want to know is whether to pay it and have him continue as a named driver or give him the car and the V5 and let him take out a policy in his own name.


Is that all? Seriously, that's a good price for a young driver. Pay it, and let him build up his own NCB. It'll drop considerably if he keeps out of trouble for a year..



Whoops, ignore me, I misread and thought that was his own policy, not as a named driver on yours..

Hell Razor5543
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Re: Car Insurance for New Young Drivers.

Post by Hell Razor5543 »

If the insurers have the option of a 'black box' monitor that could be a way to (depending on driving style) improve the premiums. My landlords' grandson could not get affordable insurance (despite a lot of checking) until they went for one with the black box. I don't know the details, but without it he would be forced onto public transport.

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NewcastleFalcon
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Re: Car Insurance for New Young Drivers.

Post by NewcastleFalcon »

JohnD wrote:
09 Aug 2018, 11:23
I’m hoping to tap into the collective knowledge of the best - (maybe I mean cheapest) - way of getting a young person onto the car insurance ladder.


This thread may have some contributions to help, alongside many reminisces of how different it was when we were young!

One of the major factors we came across in our meanderings, was that postcode made a tremendous difference!

Your grandson needs to move to rural Northumberland, same quote £2000 less for a Northumberland postcode as opposed to a Manchester Postcode.

For a 17 year old trying to get their own insurance on any sort of car, anticipate several thousands, tiny annual milages, monitoring boxes, curfews and everything else even if you manage to get insurance at all.

Regards Neil

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bobins
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Re: Car Insurance for New Young Drivers.

Post by bobins »

Have a look at the moneysavingexpert guide to reducing the the insurance cost for young drivers. There are various tips on how to get the cost down.
https://www.moneysavingexpert.com/car-i ... g-drivers/

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Timmo
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Re: Car Insurance for New Young Drivers.

Post by Timmo »

I dont know the ins and outs anymore, but do know how much a friends daughter is paying for her seat ibiza fr, '63 plate, she Was on £1700 a year with both parents named, black box etc. (she did do the Pass plus course after she passed), she got a warning for driving aggressively and exceeding a speed limit through to her mums phone, then a good couple of months and then had a 'bad drive' and hit 3 bad indicators in one evening and promptly had her policy revoked!
Cue an entire day of phoning insurance companies and managing to get a policy with another black box but a premium of £5700! If she has 10 months good driving then gets 2 months free!
A very expensive lesson learned!

Another friend who's an aussie said the system they use Works, when you pass the test, you are restricted to daylight hours, curfew set, no passengers allowed under 21,no more than 3 in the car, car engine size restricted and power,
Seems like a logical step to me!

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GiveMeABreak
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Re: Car Insurance for New Young Drivers.

Post by GiveMeABreak »

Completely horrendous prices - and to be honest, if they did more to stop these insurance ram and crash scams that put all our premiums up....

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EDC5
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Re: Car Insurance for New Young Drivers.

Post by EDC5 »

I wish we had a wither a european insurance system or an american insurance system where the car is insured regardless of driver(s) or the driver was insured regardless of car.

Our system is possibly the most distorted example of 'the market' operating to squeeze the last penny from motorists. Case in point: why is third party cover no cheaper than fully comp? drastically different levels of cover yet no real difference in price. They know how much a motorist can afford to pay and will charge as close as possible to that value.

I'm still under 25 meaning thst I can't drive anybody elses car (third party), which is such a pain when I'd like to borrow a van or land rover for the day etc. Similarly if it wasn't for insurance I'd have at least two cars, maybe more, but the fact that they need their own policy is nuts! How many cars can they think a person can drive simultaneously!

Bastards... the lot of them.... ahem.

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Paul-R
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Re: Car Insurance for New Young Drivers.

Post by Paul-R »

EDC5 wrote:
15 Aug 2018, 19:43
Bastards... the lot of them.... ahem.
No argument from me...

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Pug_XUD_KeenAmateur
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Re: Car Insurance for New Young Drivers.

Post by Pug_XUD_KeenAmateur »

not something I know a huge amount about, but I'd say to sell him the car (probably best for there to be a paper trail showing he "paid" you for it)

....but also have a look see if there's any value in him buying an alternative vehicle at or near the bottom of the Insurance Groupings.

As much as a Saxo Diesel is hardly the most exciting thing on four wheels (I rather like them but....); I'm thinking that possibly the 1.5 engine pushes the premiums up.

If you can find what cars would merit a Group 1 risk, maybe it'd be worth an Insurance search based on the credentials of an advertised vehicle to see if the savings make this worthwhile.

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Re: Car Insurance for New Young Drivers.

Post by JohnD »

I’m grateful to those members who have shared their opinions and experiences regarding insurance for first time drivers. After a lot of thought, this is what I’ve done.

Originally I had my twenty year old Saxo insured for myself, and to lower the premium slightly, I included my eldest daughter on the policy. When my grandson started driving lessons I wanted to include him on the policy however, LV – my insurer for the past several years just refused to give me a quote. I had no alternative other than to change insurers. Go-compare gave me several quotes and Onecall offered me the reasonable premium of £350 for the three of us, fully comprehensive.

After my grandson passed his driving test, I rang Onecall to ask how it would change the premium. They wanted a further £626 – making the annual premium £975. Several forum members mentioned the fact that it would be better if he owned the car and started immediately building his own no-claim bonus. But the lowest quote I could find was £1600 with a box fitted. I talked to Onecall again and they agreed that with grandson as a named driver, if at the end of the year there had been no claim, he would be credited with one year’s no-claim bonus. For me, that was the clincher. I accepted the policy at £975.

Samuel has yet to drive the car on his own, but with the over-confidence of youth, he has asked me if he could drive the car (round the M25 and down the M3 for 70 miles) to Southampton. After I’d stopped laughing I explained that his first step would be to put on some ‘P’ plates and take a few drives with me on the local motorways………….. It’s back to the train for now!!

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Timmo
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Re: Car Insurance for New Young Drivers.

Post by Timmo »

Well that would most certainly come under 'In at the Deep end' for motorway driving experiences!