[Rant] Car Insurance in the UK is a [censored] rip-off

[Zona]

Hey GTPlanet,

I just wanna get this off my chest.

So, my Dad and I are going to look at a JDM MK1 Mazda Miata (1990) next week and I have just been getting some insurance quotes for it. So, I go on Gocompare and put in my details as a learner driver (I've had 2 years ncb on my parents policy on my 1989 Minin which is currently £636 to insure) and I've added my parents to the insurance so they can drive it. The cheapest quote I've got from the insures of me as a learner driver is a little over £1300 fully comp. But when I pass my test in a couple of months time the insurance is £3300 even with my parents as named drivers.

As I am currently unemployed I won't be driving this car every day and I'll probably only be using it to get myself to job interviews, into town for shopping and the occasional Sunday drive and car show.

I'm 20 years old and a responsible driver, I don't enjoy going fast on the road or driving like a 🤬 as there's a time and a place for that (the race track) I don't see why I should pay £3300 to insure a Miata fully comp when my 16 year old cousin who just passed her test in the states can insure hers for way less than I can in the UK. It's just pure 🤬

Would I be better off by going to a specialist who specialized in classic car insurance? And I don't want to get a Corsa, 106, Saxo or Clio as they are over used and crap basically. I want something fun to drive.

/rant.

 

[Guardian]

Tell me about it.

For a 19yo, (with his dad and another adult on the policy) to insure a 1.2 Fiesta, it was £1500. I know that's not a-lot compared to some of the horror stories you hear about teenagers/young adults getting insured, but £1500 for a 1.2 hatchback?* I should explain, without the fore-mentioned people on the policy, it was £2700 for the cheapest.

The reason the Miata is so pricey to insure, is because it's a roadster. As soon as the insurer registers words like 'sport', 'roadster', 'TDI' etc. they rocket up the price. It's a stereotypically induced shame. They assume everyone between the ages of 18 and 25 are all driving saxos and crashing into trees and wheelybins. When in fact, most of the 'P' drivers I come across are incredibly courteous.

*the most expensive was roughly £17,000.

 

[Zona]

Tell me about it.

For a 19yo, (with his dad and another adult on the policy) to insure a 1.2 Fiesta, it was £1500. I know that's not a-lot compared to some of the horror stories you hear about teenagers/young adults getting insured, but £1500 for a 1.2 hatchback?

The reason the Miata is so pricey to insure, is because it's a roadster. As soon as the insurer registers words like 'sport', 'roadster', 'TDI' etc. they rocket up the price. It's a stereotypically induced shame. They assume everyone between the ages of 18 and 25 are all driving saxos and crashing into trees and wheelybins. When in fact, most of the 'P' drivers I come across are incredibly courteous.

I know. It's 🤬

My friend who is my age drives a honda s2000, he passed his test when he turned 17 but in that time he's gotten numerous speeding/reckless driving tickets and written off 2 cars (his saxo and first s2000).

 

[FordMKIVJ5]

But the insurance company doesn't know that you're a responsible driver. A fair amount of people crash within their first year of driving. Around 1/10ish new drivers at my college have crashed in their first year. Once you've got a year of incident free motoring under your belt (driving on your own- learner experience doesn't count for a lot because insurance companies assume you're not going to drive like an idiot with a parent/other in the car). For example mine was £1500 this year, but next year assuming I don't have an accident (touch wood ) it'll be ~£500.

However I do agree that it can be a bit excessive. I expect new drivers premiums to be higher, but the extent to which they are is a bit silly really.

 

[Famine]

The general sentiment is apt, but...

a JDM MK1 Mazda Miata (1990)

Hokay. Ignoring the fact a "JDM" would be a Eunos Roadster (Miata is North America), all imported cars are classed as higher risk because they are either higher specification, harder to get parts for or both. In the case of the MX-5, that's a bit harsh as they were all made in the same place and had badges put on afterwards.

Convertibles are also higher risk because of the increased risk of injury to occupants in a collision. And in fact without a collision even occurring. And the increased severity of injury.

Cars classed as sports cars are also a higher risk because... well, they're sports cars.

(I've had 2 years ncb on my parents policy on my 1989 Minin which is currently £636 to insure)

Double-check you can earn NCB on other people's policies as a named driver. This can be - but rarely is - the case.

It's also worth noting that you earn NCB on the driver/car combination. It's not yours, it's yours for that car. Insurers commonly mirror it onto other cars - so commonly I don't even know of it ever not occurring - but they don't have to.

The cheapest quote I've got from the insures of me as a learner driver is a little over £1300 fully comp. But when I pass my test in a couple of months time the insurance is £3300 even with my parents as named drivers.

The reason for this should be obvious.

A learner driver always has an adult over 21 who's held a full UK licence for more than 3 years sitting alongside them. A driver who has a full UK licence does not. A learner is thus a lower risk than a newly qualified one.

I'm 20 years old and a responsible driver, I don't enjoy going fast on the road or driving like a 🤬 as there's a time and a place for that (the race track) I don't see why I should pay £3300 to insure a Miata fully comp when my 16 year old cousin who just passed her test in the states can insure hers for way less than I can in the UK. It's just pure 🤬

UK and US accident statistics differ wildly, thus the actuarial data used to calculate the risk factors differs wildly. She's likely covered under a household policy (common in the US, nonexistent here) allowing multiple drivers to drive multiple cars rather than the individual policy you have. US cost of living is lower. US standard of living is higher. US average income is higher. The exchange rate.

Would I be better off by going to a specialist who specialized in classic car insurance?

They're typically limited to drivers over 21 and for second cars. If you can find one that isn't, give it a whirl

 

[Grayfox]

Alot of things go toward your premiums .

Robberys in area
Age of car
No Claim Discounts
Multi Policy Discounts
Massive Payouts

The Massive payouts hit me this year.

Last year I paid $1000 for my Compulsory Third Party Insurance & Comprehensive.
This year about $1800, I blame the QLD floods, since my insurer had to payout the victims they need to regain profits again.

 

[1stlsx]

Its not just in the UK you get screwed. When I was 17 and wanted to get my own policy they wanted $156 a month for insurance on an 86 Camaro base model, basically 1900 a year and I only paid 1750 for the car! Needless to say I stayed on under my parents. When I got my 98 Camaro at age 20 my insurance was just under 200 a month... Needless to say I pay much less now that Im over 25, but they screw you when you are younger!

 

[stumpydino]

You just have to wait it out. They don't make it up, young inexperienced people crash frequently and it affects everyone in the same categories, the model included. It's all statistics they see. I got penalised for driving an escort estate "because it's an escort"...
You can make adjustments in the policy to bring it lower and modern applications have a few more options to help bring it down but until you have a few years under your belt it might be a bit pricy, at least it won't get worse!

 

[Murcie_LP640]

Last year I paid $1000 for my Compulsory Third Party Insurance & Comprehensive.

...both on the same car?

EDIT: Never mind, skipped over the word Compulsory. That's cheap.

 

[gokartman78]

Sainsbury's was the cheapest I could find on my Citroen C2 1.1, and they wanted just under £3500. The car cost me a little over £2000. Thankfully a friend told me about co-op's young driver insurance. They put a black box in the car to check you are driving sensibly, and give you refunds accordingly. My quote was £1700 with them, a lot cheaper. I just got a 90 day review through, and got £188 back as I had been driving 'safely'.

I hate the kids at college who drive around at 50mph in a 30, get stopped by the police, get the 3 points, then complain about the cost of insurance. If it wasn't for them car insurance wouldn't be legalised fraud.