‘L plate hell for parents’

Confused.com warns learners that adding themselves to parents’ policy is a ticking time bomb to high premiums later.

·         Confused.com reveals that new passers without no-claims bonus may face nearly double premiums on their first car.

·         Building no claims on a banger is key to bringing down costs.

The latest Confused.com/EMB index revealed that parents are paying a high price for their offspring to learning to drive when adding them to their insurance policy. With 41-55 year old drivers bearing the heaviest brunt of the quarterly increases for comprehensive cover. Mums in particular faced a 14% penalty¹ for having named drivers other than their husband on their policies. But just how much is this extra pressure on the family premium helping young drivers?

Adding a 19 year old provisional driver to a policy can make premiums nine times² more expensive, which may still seem economical when compared to the sky-high prices for a learner in their own car but drivers who pass their test and want to go on to buy a car may well be in for a shock. Newly passed drivers who insure their first car without a no claims bonus behind them could stand to pay 67% more than a driver who does, even in a small, old car with a 1 litre engine.

Will Thomas, head of car insurance at Confused.com says “Insurers see young drivers as a high risk - mainly because they lack experience and are more likely to have an accident. Insurers like experienced drivers and especially those who don’t claim and this is the catch.

“To get cheaper premiums a young driver will need to build up experience and a no claims bonus. It will be expensive at first,but unfortunately this is a necessary evil. After the initial outlay a young driver will see their premiums dramatically reduce year on year. The quicker a driver can get this experience the less they will pay in the long run.

“It is important that drivers ensure they are getting the benefit of claims-free driving by having either a car insurance policy in their own name, or that the policy they are on allows them to earn no claims bonus as a named driver. “

¹  According to Confused.com/EMB Price index July 2010  – available on request

Scenario A :  19 year old male provisional driver going fully comp on a 1995 Ford Fiesta 1.1

Scenario B:  As above but with a new full licence and 1 year NCB

Scenario C: As above, without 1 year NCB

²Scenario D: 55 year old man living at the same address with a Ford Focus hatch 2005 with a modest 1.6 engine

Scenario E:  55 year old man living at the same address with a Ford Focus hatch 2005 with a modest 1.6 engine + 19 year old learner son.