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.
Cardiff, UK (PRWEB) October 16, 2010
The latest Confused.com/EMB index revealed that parents are paying a high price for their offspring 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% penalty* 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 times** 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. "
For further information please contact:
Confused.com Press Office
02920 434 393
Notes to editor
*According to Confused.com/EMB Price index July 2010 - available on request
Confused.com is one of the UK's biggest and most popular price comparison services. Launched in 2002, it generates over one million quotes per month. It has expanded its range of comparison products over the last couple of years to include home insurance, travel insurance, pet insurance, van insurance, motorbike insurance, breakdown cover and energy, as well as financial services products including credit cards, loans, mortgages and life insurance.
Confused.com is not a supplier, insurance company or broker. It provides a free, objective and unbiased comparison service. By using cutting-edge technology, it has developed a series of intelligent web-based solutions that evaluate a number of risk factors to help customers with their decision-making, subsequently finding them great deals on a wide-range of insurance products, financial services, utilities and more. Confused.com's service is based on the most up-to-date information provided by UK suppliers and industry regulators.
Confused.com is owned by the Admiral Group plc. Admiral listed on the London Stock Exchange in September 2004. Confused.com is regulated by the FSA.