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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To be hacked off with insurance companies?

61 replies

StudiousSal · 30/09/2010 16:55

DS1 passed his driving test today, 1st time bless him, my dad left him his old car, which is not worth much at all.

I've been trawling the internet all day the cheapest company, want £3,553.00 a year.

He can't afford this, he's still looking for work, and I can't afford to help him out, he's so down now.

OP posts:
HecateQueenOfWitches · 30/09/2010 17:04

bloody hell.

It's because he's in a high risk group, isn't it.

Is this fully comp, or 3rd party, or £rd, fire and theft?

sockmonkey · 30/09/2010 17:07

Its not what the car's worth, it's how much damage he can do! Not to scare you but statistically all males between 17-21 will crash their car.
I'd seriously reccomend he do his pass plus as most insurance companies give a discount for having it.
What kind of car has he got?
He really needs to be in an 1.0l car, old, low insurance group rating until he's built up a bit of no claims bonus.

eek.

OldLadyKnowsNothing · 30/09/2010 17:07

Fully comp is, for some odd reason, often cheaper than the alternatives for youngsters. What engine size is the car? Could you swap it for something smaller?

nocake · 30/09/2010 17:07

I assume he's 17 or 18? He's a high risk. That's just the way it is and you can't blame the insurance companies for that. Despite everyone thinking the companies are ripping them off, car insurance is not a very profitable business. They make a very small margin on each policy.

Original poster
StudiousSal · 30/09/2010 17:10

Thats 3rd party, fire and theft, I know he's in a high risk group, but poor kid, he did it because it would give him the ability to travel further so that he could find a job. I phoned my insurance to see f I could put him on mine, but it bumps mine upto over £2000.00 where as now I pay £35 a month fully comp, how are youngsters meant to get a chance of bettering themselves.

OP posts:
laweaselmys · 30/09/2010 17:13

You might find it's cheaper if you add you to his insurance (as a named driver) or play around with who owns the car blah blah.

As long as he is still the named main driver if that is how it's going to be. And you correct the rest of the paperwork if necessary.

We just found this with our car. I have to be the owner and insurance holder, with DP as the main driver to get a quote of around £1000! (way cheaper) But then they wacked on 8.5% extra to pay monthly.

It's insanely expensive.

Original poster
StudiousSal · 30/09/2010 17:14

He's 19, whilst I appreciate yes he's statistically more of a risk, it's a 12 yaer old renault clio, 1000cc engine.

Nocake, it might not be profitable but at the end of the day, you wonder why so many go around without any car insurance at all!

OP posts:
tyler80 · 30/09/2010 17:15

My car was stolen earlier this year, but recovered undamaged. Yet my renewal premium went up by more than the total cost of the claim! In my mind it ceases to become insurance if they pass the whole cost straight back to you. Luckily I managed to get insured elsewhere for much less.

Car insurance manages to work in other countries without the ridiculous prices so why can't it work over here?

HecateQueenOfWitches · 30/09/2010 17:18

it's not so much about his car - it's about claims from other people.

Someone driving a little old car can crash into a top of the range bmw...

It is unfair, when you know that your particular youngster is not reckless, but they have to go on statistics.

Chil1234 · 30/09/2010 17:21

He may have passed his test but if he can't afford to run a car just yet, maybe he should sell the Renault, bank the cash and get around on public transport until he's got some more money and the insurance rates are a bit cheaper? That's what I did when I passed my test aged 19... didn't own a car for another 2 years.

DilysPrice · 30/09/2010 17:21

You could shop around to see if you can get a better quote for you and him, then cancel your existing policy (or threaten to and haggle them down). Try googling for other tips (newspaper money sections often cover this subject, or try Moneysavingexpert).
But you won't be able to bring it down to what you feel is a reasonable amount I'm afraid, because insurance companies have to pay out multi-million claims from teenage male drivers all the time, and they've learnt their lesson.

harassedinherpants · 30/09/2010 17:25

Ahh just spotted your problem.....it's because it's a Clio and it's considered a "boy racer's" car!! Even with that little engine.

My ds1 passed at 18 and had a Corsa and paid £1200 for 1st year. Bought the car for £300!!

The 2nd car he bought, he did lots of research first to get one he liked the look of, but wasn't seen as a boy racer car.

He's 21 now and has never had an accident (there are lots of sensible young driver out there!). He recently bought a Subaru estate so he could fit in his family (gf and 1yr old dd) but also use it for work if necessary (roofer). It's cost £900 3rd party even now! That was through Norwich Union, but he's used Swift Cover before and they were good.

What about chatting with an insurance adviser?

Really hard for teenagers these days!

Itsjustafleshwound · 30/09/2010 17:26

Unfortunately (as others have said) it is just that your son falls in a bracket of 'insure at a big cost' .... young boys are more likely to claim on the insurance.

Insurances for all has become really expensive - I read somewhere that it is due to fact that there are a lot more uninsured drivers and more personal injury claims - the insurance houses claim that for every £1 of insurance premium received, the industry pay out is in the region of £1.72 !!!

shongololo · 30/09/2010 17:31

play around with the excess. Play around with the value of the car. Look more realistically at the number of miles he is likely to do. You may be able to bring the premium down more.

Itsjustafleshwound · 30/09/2010 17:32
Marjee · 30/09/2010 19:28

Yanbu, insurance companies are the work of the devil Angry

5Foot5 · 30/09/2010 19:42

Hecate has it right - it doesn't matter that his car is old and maybe not worth much, they are looking at what damage he could do to someone else. In fact in an old car they could easily take the view that he will be less concerned about damaging it then if it was a shiny new one and would therefore be less careful. Hence, he might pay less insurance for a more expensive car.

Infuriating I know.

Earlier this year I told my (then) insurance company that I was doing far less annual mileage than I originally predicted because I had changed job and lived within walking distance of work. I actually thought this would bring the premium down a bit. In fact they said it would put it up by £100s because statistically a person driving so little was more likely to have an accident Hmm I changed insurance company!

LookToWindward · 30/09/2010 19:46

Young male driver, just passed his test = statistically likely to drive like a numpty and be involved in something expensive = insurance reflects this.

A pass plus is usually a good idea as is a tiny engined, old car (like a Micra). You can also play about with excess and level of cover but you'll never see a premium in three figures I'm afraid.

Some places do "accelerator" schemes where you get a years NCD after ten months. Might be worth a look in to...

And whatever you do, don't put yourself as the main driver and your DS as a named driver. You're opening yourself up to all kinds of trouble if you do that.

HecateQueenOfWitches · 30/09/2010 19:55

can I ask why, LookTo. I ask because my husband is planning to do that with me. Is it not allowed?

emmyloulou · 30/09/2010 20:01

YANBU, it's one vicious circle peddled and started by the insurance companies.

"It's because of all the uninsured" the companies say, well no shit most will balance up the points and likely fine and will still be £1000's better off! And so the cycle continues and grows.

Othersideofthechannel · 30/09/2010 20:05

Hecate, any false declaration is considered fraud. The insurance company could refuse to pay for the claim and if it is known you have committed fraud, it could be difficult to get insurance afterwards.

emmyloulou · 30/09/2010 20:08

Hectate it's called "fronting" saying you are the main driver when your are not to get a smaller premium.

Your insurance won't pay out and it's a criminal offence on 2 counts, fraud and you are then driving without insurance.

HecateQueenOfWitches · 30/09/2010 20:14

what about if it's 2 people sharing one car? How do you decide who is the main driver? work out who drives the car most often?

And how would the insurance company prove anything if you both drive the car?

Am trying to understand the way they work.

CMOTdibbler · 30/09/2010 20:20

Alas, what really racks up the cost of insuring young, male, drivers, is the fact that they tend to drive around with a car full of other young men and drive aggresively. With the cost of paying for the lifelong care of a para/tetraplegic 18 year old running into several millions, you can see where the premiums go.

A 'classic' car like an elderly mini is cheap to unsure as those drivers tend to take more car of them - dnephew is paying 500 pounds odd for his

Do not do fronting - insurers look very carefully for it, and take a v dim view. If you have insurance declined, you will find it hard to get any type in the future

emmyloulou · 30/09/2010 20:24

Fronting can be picked up in many ways, for example if you crash the car on the school run and DH is the main driver, how can he be if you use it daily for the school run, or if it's stolen outside of your work etc.

That's really simplistic examples, but insurance companies look bloody hard for fronting, it's hard enough to get a full claim settled on a genuine policy, don't underestimate the ability for insurance companies to try and avoid a payout, they have huge depts to look into fronting for duel policies.