To think that car insurance has gotten to be a scam

[MaloneMeadow]

Tell me in what world is it reasonable that I’ve just paid £4500 for my (very sensible) DD’s first year of insurance, whilst DM’s 80 year old best friend is still tootling around with severe eyesight issues and dementia, having a near miss on a daily basis yet paying next to nothing insurance wise! Absolutely scandalous that the government are sitting back and allowing the horrendous price gouging currently going on with car insurance in the UK.

Mine neither. He is 21 now, passed his test at 17 and bought a 1.0 litre small car. I think it was around £750 for the first year, but came down as he built up his no claims. He had a black box for the first 3 years. It went down to £400ish last year, but has gone up to £500ish this year as insurance costs generally have gone up.

Car insurance is a loss leader for most providers: on average it costs insurers £1.10 in claims and operating costs for every £1 received in premiums. It really isn’t a “scam”, you’re just paying what it costs to provide cover: parts and labour cost more than they did even a couple of years ago; modern cars are more expensive to repair, even a relatively minor accident can result in a significant repair bill or write off; insurance fraud cases and e.g. whiplash claims have skyrocketed in recent years.

Assuming that your 21 year old passed around 17 then that was 4 years ago. The world has changed

Dd got her first insurance 3 years ago (age 19) and it was £690 on my multicar insurance (her name me listed as second driver) the trick was not a typical young person car

Again, your DS passed 4 years ago. Insurance, especially for new drivers in that time has skyrocketed - it’s a different world

This!

Absolute bollocks that It's "a scam".

If they didn't prudently invest the premiums they receive they'd actually be making a loss.

Why don't people look into things before declaring them to be a rip-off?

Unfortunately it’s her own - she needs one to drive to work and placements as she’ll be starting an AHP degree in September, no real option for us to share as my car would be too big for her anyway

My dad is 85 his insurance increased this year from 900 to £1900 I think he's daft he drives about once a month I take him shopping and do all the running around buy he wants to keep his independence

That sounds alot, what are they driving?

Does she live in area that is particularly bad for theft? As that would increase the cost. I presume it is her own car rather than her being a named driver on yours?

I got a quote to add my 19yo DS as a named driver to my policy and that was around £900. Not worth it when he's away at university most of the year, so we'll use temporary insurance with Vaygo. 17yo DD has PAYG with Marmalade, this cost around £300 for the first 500 miles but will get cheaper the more she drives. As I said earlier, 21yo DS has his own car and his own policy, costs around £500 per year.

My conspiracy theory is they are setting the car insurance so high for youngsters that it'll make it impossible for them to comply so to fit in with a car-free ideology for the future generations. That is a crazy amount of money for insurance.

She has her own car as she needs it for commuting to placements etc, unfortunately no real option for us to share as my car would be too big for a newly qualified driver anyway

Nope, we’re in quite a ‘good’ and quiet area!

I also have a 19yo and a 17yo. Both passed their tests at 17. Have never had a quote that high.

A 1.2l 2016 Mini

My best quote on a 1.6 diesel cmax was £845, I'm 42 with 20yrs ncd.....

My 17 year olddaughters cheapest quote on any car I could find was £3500 (vw up)

Insurance has gone up a lot, I think lots of people have no idea how much teen insurance is. We are in a nice area so usually ok for insurance and teens in their own small cars are £4000/£4500. My teen is a named driver on my 9 yr old fiat 500 car - £2300.
Insurance does usually go up at older range but not like teen.
If you have concerns re an elderly driver contact police there’s usually an online form. A driver in his 90s knocked over my elderly mum and I was really impressed with police they had a special officer to deal with the shouldn’t be driving elderly. Officer went to see him he failed the test to read a licence plate and officer emailed dvla on the spot and his licence was revoked in 20 mins.

I think this too. Cars will only be driven by the wealthy.

Loads of stats here if you are so determined to believe it's all a scam.

https://www.uswitch.com/car-insurance/car-insurance-statistics/

Starter for ten... Motor Insurers are expected to have paid out over than 10% more than they took premiums last year, and it was nearly 14% in 2022.

Young drivers cause the most serious accidents- often writing cars off and causing damage to 3rd party property/injuries. Older drivers tend to have smaller knocks so any claims they have are significantly lower cost.
it’s based entirely on statistics. You say you live in a good area- sometimes that can increase costs and any cars/property around you would cost more to fix too.
The cost of claims have risen significantly- cost of repairs, cost of labour etc.

Yes, this. Not a scam or price gouging. And I suspect we’re all paying the price of how many electric vehicles are now having to be completely written off if there is even the slightest damage to the battery.

Thanks for this - all really helpful, will do!!

Did she end up going with the VW Up? They are lovely, DD really liked the one we went to see

For those laughably trying to portray teens as subsidising elderly drivers, have a look at these stats...

Young drivers are massively more likely to have serious accidents.

Elderly drivers pay far more for their insurance policies than teens relative to the level of KSI accidents - and therefore expensive claims - they're involved in.

Still doing lessons, but not decided... She really wants a mini....

Have you reported the unsafe driver to the DVLA or not? You keep ignoring the question.