New driver - Insurance

[jamie.dunn]

I passed my test 3 and half years ago now. And got my first car not long after.

 

I had it the hard way. I'm then only one in my household that drives so I had to go in solely by myself.

 

My advice to anyone starting out to look for a cheap ( BUT ROADWORTHY) car in my case a 2002 Ford Fiesta on black box insurance ( altogether it cost me £1500 to buy,insure and tax it ) which for a 18 year old is super cheap.

 

Had it 18 months without a single issue. I'm now on to a 59 plate Fiesta which is running perfect and my insurance is just short of £400 without a black box.

 

Also because I'm a mechanic it pushes my insurance up by a little which is a pain but its something I can live with and is a lot cheaper then some of my mates.

 

The first couple of years driving are always expensive unfortunately.

[Joseph_Pestell]

This is a useful point for anyone thinking of buying a car for a young driver, whether their first car or not.

 

Insurance premiums are calculated from assessing a very broad set of risks factors, against historical insurance claims data.

There are many factors involved, such as the obvious ones, like post code (how high are the number of claims in that area), is the car garaged overnight, parked on or off the public road (theft and damage risks), age of the driver, amount of driving experience, previous insurance history, previous claims, previous traffic offences, criminal record (fraud risk) etc, etc.

 

When it comes to the car being insured, apart from factors like model, trim level, engine size, age of the vehicle, current value, estimated annual mileage, how expensive is the model to repair etc;  they also look at how commonly there are claims on that make and model of car.

Most importantly not only do they look at historical data on accidents and claims involving the same or similar cars with the same attributes....but also who was driving them.

 

When it's all added up, apart from the usual long list of risks that are factored in, the added risks and accident data associated with young and inexperienced drivers results in the highest levels of premiums.

 

Note:

young drivers under 25

mostly but not only male

the most common makes and models of car in which they drive (Fiesta, Corsa, etc,)

 

In other words, most accidents and claims involve young, mostly but not exclusively male drivers, driving small engined popular young driver's cars.

Many parents make the assumption that as most other youngsters drive these sort of cars, that must be OK for insurance. Not.

 

Choosing a car less commonly used by new drivers may reduce premiums, but it's not always the case if that model of car is more expensive to replace for repair, or in itself attracts a higher premium in general.

 

Simplistically, it's possible that a brand new car may be cheaper to insure in the youngsters name than a 5 year old one, based on the fact there are fewer youngsters driving brand new cars and therefore there are fewer claims.

 

There's also the factor that a driver is statistically more likely to be more careful and diligent with a newer car of higher value, especially if it belongs to a parent.

Therefore a newer, or new car, owned and registered in a parents name, but insured in the youngsters name, should attract a lower premium than if it is owned and registered by the youngster themselves.

 

It can be a minefield, but as with other things in life, it's worth doing your homework if you want to save a few hundred pounds.

On line insurance quote calculators are available to play with.

 

 

Fronting - Don't even think about it. Not only is it illegal, it will invalidate the insurance policy and the insurance company may also sue and are likely to blacklist you.

That can be an expensive mistake that could increase your insurance premiums for years.

It may also affect your house insurance premiums.

 

A couple of anecdotes...

 

A friend's son's first car was an old Land Rover.

It cost about £450 fully comp. in his first year, aged 18. (this was in 2010).

A relatively slow and un-sporty car.

Low value to replace if written off.

Very cheap repair costs and parts.

Very few 18 year old, first time drivers and historically a very low number of claims for such drivers, on that sort of vehicle.

 

At the same time, quotes to insure our 17 year old on a 6 year old Fiesta 1.0L ranged from £1900 to £2500 p.a

On a brand new Corsa 1.2L owned by and registered to Mum, but insured by our son (first car, first year of car insurance) we were quoted £1600

 

Good luck !

 

 

Ron

 

 

.

And if he crashed it, the other guy comes off worst

[Joseph_Pestell]

OK, here's the back story...

My son's 19 next month and after a few lessons, he's booked an intensive course with that 5-day place in Norwich (the company with the annoying yet catchy radio jingle).

So, assuming that in a couple of months, he'll be legally mobile, thoughts have turned to his first car.

I'm getting a little bored with driving around in the little automatic Citroen C3 that my wife uses as a shopping trolley so I'm happy to buy something in my name and to insure it in my name. It need only be for a year, as our emigration date is looming (perfectly timed to coincide with the aftermath of Brexit).

We've kinda agreed on a 2006 Seat Leon 1.6... engine size might be a bit bigger than a new driver needs, but it's a decent car with good visibility. It will never turn any heads, but hey - I don't care about that. My son is fussy and insists he wants to be a little bit different with car choice. Initially he fell in love with a 1999 Alfa GTV 2.0 TwinSpark (yeah, right... the perfect car for a new driver, not). Having lived in Spain and owned a couple of Ibizas, I have no issue with Seat, in fact I rather like them - they're a common car but not so common as a Corsa, Fiesta, <insert boring little hatchback here>, etc etc.

My question is... if I give him the money, he buys the car, registers it in his name and gets an insurance quote soley in his name, it will cost at least two arms and half a leg (which will make the car impossible to drive). Now if I buy it, insure it in my name and add him as a named driver, the insurance takes a leap up from what I'd expect to pay as sole driver, but it is still much more affordable than scenario 1.

Are there any small-print pitfalls to watch out for with "named driver" policies. Remember, I'll be using it more than him... he'll probably only take custody of it at weekends for trips to Acle to visit the girlfriend, etc etc.

What's not to like about a Seat Ibiza? All the benefits of VW Polo but at a much lower price.

[Joseph_Pestell]

Much less safe when he crashes it too, if you're bothered by such things.

 

If one has a truly major "off", yes. In most cases a pretty marginal difference.

 

Obviously, one would not recommend a "classic" without seatbelts and there are even probably some around now with airbags. I was witness to a truly amazing "off" about 22 years ago where a lady barrel-rolled a Vauxhall Tigra. She was completely uninjured apart from some slight glass cuts incurred as she got out through the rear window.

 

I would be quite interested to see how that Alfa GTV fared if insured through the Owners' Club, or perhaps a slightly older one.

[MJI]

I have heard Volvos and Mondeos are cheap to insure, not the usual type of learner car.

 

How about an old Volvo 245 or similar

 

Safe, classic, reliable, worth looking at.

[The Stationmaster]

Pete, 

 

With both of our offspring we they have got down the route of car owned and insured in their name with me as a named driver (Mrs Stationmaster doesn't drive).  Adding me as a named driver removed a reasonable percentage from their insurance cost plus, interestingly, going for Fully Comprehensive Insurance instead of 3rd party Only also reduced the cost.  Laddo made his way through ownership of two Fiats before progressing ti his current Mini Cooper and something like a Fiat Punto is definitely cheaper to insure than an equivalent Ford model (although parts tend to cost a lot more/

 

I appreciate you are heading southwards in a year or so but I really think son owned/insured plus you as the named driver is probably the best course.

[Ron Ron Ron]

How about an old Volvo 245 or similar

 

Where on earth would you find one of those?

Surviving roadworthy examples must be quite rare now, nearly 30 years on from when they stopped making them.

 

 

.

[njee20]

If one has a truly major "off", yes. In most cases a pretty marginal difference.

 

Obviously, one would not recommend a "classic" without seatbelts and there are even probably some around now with airbags. I was witness to a truly amazing "off" about 22 years ago where a lady barrel-rolled a Vauxhall Tigra. She was completely uninjured apart from some slight glass cuts incurred as she got out through the rear window.

Well there are basically no circumstances where a classic car will fare better than a modern one in an accident. So yes, a minor “off”, as you charmingly put it, may well be totally survivable without crumple zones, airbags etc, but given the likelihood of such an incident occurring, and the chance being high that it’s not that minor then it’s not a risk I’d take with my kids.YMMV.

[Guest]

Well there are basically no circumstances where a classic car will fare better than a modern one in an accident. So yes, a minor “off”, as you charmingly put it, may well be totally survivable without crumple zones, airbags etc, but given the likelihood of such an incident occurring, and the chance being high that it’s not that minor then it’s not a risk I’d take with my kids.YMMV.

 

Pulling out into traffic and taking a car to the driver's door springs to mind as something not that unlikely and where an older car will offer zero protection.

[PMP]

Our daughter (20) started on named driver policy on a fiat punto (not fronted), wife named owner. Had use of that for a year, last year with increasing mileage, punto was shot, and she took over an 05 fiesta 1.3, base level model. Me as owner, and her own insurance. Cost of fully comp, that vehicle only, no TP to drive others, and one fault claim (company vehicle) price was 1200. This year it’s dropped to £800, the company is LV, we found them the best value against many others.

Edit: no usage restrictions eg. curfews, and includes commuting to one location, myself and wife named drivers.

 

We chose fiesta as it’s cheap, reliable, simple mechanically, and pretty comfortable and economical. Young drivers get massively loaded, she pays more for one, than I do for two high performance vehicles.

Edited June 15, 2018 by PMP

[IWCR]

Dont  get  a  decent  car  for  a  first  time  driver.

Get  something  cheap,  the  first  year  or  two  will  often  result  in  minor  problems  as  experience  is  gained  and  the  confident  feeling  arrives  a  bit  to  early.

Unlikely  a serious accident  but  minor  bangs  on  kerb  edges,  "hedge  rash"  etc  are  likely,  these  can  generally  be  ignored  on  an  cheap  vehicle  (hence  no  claim)  but  require  expensive  cosmetic  repairs  on  something  good.

Once  a  couple  of  years  experience  is  gained  (and  premiums are  dropping)  then  get  the  car  you  really  want.

Yes  its  nice  to  impress  your  mates  with  the  cool  car  but this  can  be  costly.

I  once  stopped  to  help  someone  on  a  country  road  at  night,  they  were  a  new  driver  and  had  just  rolled  the  family  car,  he was  unhurt  but  totally  distraught about  how  to  tell  his  parents  who  had  only  just  finished  paying  for  it.

The  car  was  a  mess  having  clipped  a  tree  then  rolled  more than  once,  I  couldnt  even  identify the  make.

 

Pete

[royaloak]

Why not buy him a cheap boring car and have him insure it with you as a named driver, that can reduce the premium by almost 50%, of course kids will want a flash car and the insurance quote will reflect that.

 

Another trick is to spend time on a price comparison site looking at the premiums for different makes and models of cars and engine sizes.

Edited June 15, 2018 by royaloak

[Moxy]

 

There's also the factor that a driver is statistically more likely to be more careful and diligent with a newer car of higher value, especially if it belongs to a parent.

Therefore a newer, or new car, owned and registered in a parents name, but insured in the youngsters name, should attract a lower premium than if it is owned and registered by the youngster themselves.

.

 

One of the reasons for insurance is to return the owner of the property to the position they were in before the loss.  It is known as having an insurable interest in the property (in this case a car).  In the quote above (my highlights), it is not the youngster who would suffer the financial loss, it's the parent.  The youngster doesn't have an insurable interest in this scenario, so it's unlikely insurers would pay out in the event of a claim.

[Kris]

I would recommend going for a car the young people are not often seen in, I did it when I passed (far too long ago) and my annual premium was significantly less than that of my friends driving "popular" cars, yet I had a bigger engined car then theirs.

[Ron Ron Ron]

One of the reasons for insurance is to return the owner of the property to the position they were in before the loss.  It is known as having an insurable interest in the property (in this case a car).  In the quote above (my highlights), it is not the youngster who would suffer the financial loss, it's the parent.  The youngster doesn't have an insurable interest in this scenario, so it's unlikely insurers would pay out in the event of a claim.

 

 

It appears to not be the case.

Our son and no.1 daughter both started out using a car (the same one handed down), owned by and registered to my wife.

Each had their own insurance policy, with both my wife and I as named drivers.

 

Our son had to make a claim on his policy when someone accidentally took their foot off the brake while waiting at traffic lights, damaging his rear bumper.

The insurance company processed the claim quickly and provided a free loss recovery service to obtain costs from the other drivers insurers.

The repair bill was dealt with by the insurance company, therefore there was no financial outlay to claim back.

His premium went down the following year.

 

A few years later, No 1 daughter had her driver's door damaged, in a car park.

The culprit admitted it and provided details.

Different insurer (her insurance this time).

Again no problem in settling the claim.

 

 

.

Edited June 15, 2018 by Ron Ron Ron

[newbryford]

As mentioned above, putting parents on as "named drivers" can often lower the insurance premium - which does seem a little strange. Be careful in your choice of occupation. For some reason "Company Director" can attract a higher premium than "manager"

 

Another one - if the car is a recent model rather than an old banger (i.e. more expensive), there is more chance that the young/new driver will be more respectful of it and drive accordingly, The result is a lower insurance premium.

 

 For example my 20-y-o daughter's premium came down by about £50 when she changed from a 52 plate 1.0 Nissan Micra to a 13 plate Fiesta 1.5 diesel. 

Although the cost of the vehicle was a lot more, the "whole life cost" taking depreciation into account may well be less. 

[Joseph_Pestell]

Pulling out into traffic and taking a car to the driver's door springs to mind as something not that unlikely and where an older car will offer zero protection.

 

I do recall an incident locally (in Beckenham) about 40 years ago where a young person died after a collision of this type (and not her fault). Despite quite low speeds the door was severely damaged.

 

So some cars not good but to say that all old cars offer "zero protection" in this scenario is wrong.

[RANGERS]

I've been through this twice over the past decade but in my case, both sons were using the car as much as me, one of them probably more, and we dissected all the possibilities and permutations. In both cases it, having a policy in their name ultimately proved to be the best option.

 

Some interesting things did surface though, the newer the car, comparatively, the cheaper the insurance. In both their cases, having an experienced named driver further reduced the policy, one quote was £2300 with just him and £1200 with two named drivers over 40. The insurer we opted for in his first year quoted £1350 with two named drivers and just over £1600 with just him

 

We looked at the classic options, a MK2 Golf, but came up against some hefty restrictions imposed by the specialist classic insurers which made it impractical. One refused "agreed value" comprehensive cover with him driving, another imposed curfew restrictions, most imposed fairly modest mileage restrictions which is the norm for their specialism.

 

As I had my own car also, the insurers were taking great interest in any other cars in the family and it was later explained by an insurance specialist that this kind of thing was flagged on the proposal details and would inevitably lead to more detailed scrutiny in the event of a claim.

 

The assumption that insurance falls with increasing age is slightly misleading, we trialled some hypothetical quotes with and added year of driving experience, with and without NCB and the baseline policy figure didn't fall that much, making the no claims worth a sizeable amount. Unfortunately my eldest never progressed to any no claims until he'd been driving three years! 

 

Ultimately with both, they went down the route of their own policy on a car in their own name, which seems to have worked out. At a rough guess, the youngest paid around £3000 in insurance during his first three years, including accumulated NCB. If we'd gone down the route of him as a named driver, it would have cost circa £1800 over three years but he'd still have been starting from scratch at that point. The accumulated NCB in his fourth year was worth around £450, so taking a similar difference each year until he reached full NCB, I doubt there would have been a great deal in it. The named driver approach can work but in essence, its just kicking the can down the road, they all have to start somewhere.