A learner driver has been quoted £17,000 to insure his £2,000, 1-litre engined Vauxhall Corsa.
James Hayes, who celebrates his 17th birthday next week, told the Daily Mail, “I used six comparison websites and the cheapest comprehensive quote I found as a learner driver was £2,257 with ibuyeco. This rises to £3,555 with Admiral when I pass my test. It’s ridiculous when my car is only worth £2,000.”
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Prohibitively expensive premiums have caused many young people to insure cars in their parents’ names and put themselves as a named driver on the policy – an illegal practice known as ‘fronting’.
Many insurance companies keep all quotes generated by customers. This means if someone initially requests a quote for themselves, before applying for a new quote with their parent as the main driver instead, the insurer will not pay out on this policy.
Malcolm Tarling of the ABI told the Daily Mail, “It is not uncommon for premiums for young drivers to exceed the value of their car.
“The main risk is not loss or damage to the car itself, but the potential cost of personal injury awards made against the driver if they cause an accident. This can easily run into tens or hundreds of thousands of pounds.’”
Have you struggled to find an affordable insurance quote? Have you been tempted to ‘front’ your child’s insurance policy? Have your say below.
By Rhian Angharad Jones