£17,000 Insurance Quote Betrays Young Driver Risk
A popular daily tabloid has this week published a story about a teenager who was quoted £17,000 to insure his 1-litre Vauxhall Corsa, which is worth approximately £2,000. Sixteen-year-old James Hayes, who is 17 next week, purchased his Vauxhall Corsa ahead of driving lessons. As many youngsters in his position have discovered, however, obtaining insurance can be far more difficult and costly than purchasing the car itself. Indeed, James was quoted a seemingly exorbitant £17,000. With other quotations for comprehensive insurance as high as £3,555, James would be forgiven for thinking the worst of insurers – but do his concerns fail to appreciate why the premiums are so high? Firstly, James obtained the quotations while still aged 16, which could affect the insurers' risk assessment of him. If this made little impact on the premiums quoted, the fact that James would be a provisional driver for a period of his policy, could also prompt concern. However, James is most heavily disadvant...