A teenager learning to drive has been quoted a massive £17,000 to insure his £2,000 Vauxhall Corsa.
James Hayes, who turns 17 next week, saved for months for his one-litre car but was shocked at the sky-high quotes for insurance.
The failure of insurers to offer reasonably priced insurance is being blamed on a huge increase in uninsured drivers, which increases the cost of cover for others. Many middle-class parents now commit a crime by putting themselves as the main driver on their children's cars.
According to road safety charity Brake, men aged 17 to 20 are almost ten times more likely to be killed or seriously injured on the roads than older drivers.One in five new drivers has a crash within six months of passing their test.
The Association of British Insurers (ABI) says the average claim of a younger driver is also three times more than older drivers.
Brake believe the high premiums have led to almost a quarter driving uninsured, according to Brake.
This costs £500million each year for accidents caused by uninsured drivers, which insured drivers have to pay. Fines for driving without insurance can be as small as £200 plus six points on the licence.
James Daley, editor of Which? Money, says: 'Uninsured driving is just a knock-on effect of insurers charging high premiums. If insurers really want to combat this then they need to come up with innovative solutions to help young drivers reduce their costs.
'It's in everybody's interests to encourage young people to be better drivers and those who are responsible and maybe need to drive for their job should not be made to feel as if they're being discriminated against.'
According to the AA, car insurance premiums have increased by 11% in the past three months. The average premium for drivers who shop around is £704, but most young drivers can expect to pay at least £1,500 more than this.
James Hayes said about his search for a quote: '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.' The Green Insurance Company offered the most expensive quote at £17,000 per year.
With insurance, road tax, MoT and driving lessons, the cost really stacks up for James and his £5.60 an hour job.
Mr Hayes does not want third party-only insurance and does not want to invalidate his insurance by 'fronting' (where his parents are the main drivers on the policy).
Malcolm Tarling of the ABI says: 'It is not uncommon for premiums for young drivers to exceed the value of their car.
Will Thomas of Confused.com says: 'When you've passed your test, take the Pass Plus course. Only 6 per cent of 17 to 25-year-old males do, but it saves them £1,037 on average before they reach 25.
Source: Daily Mail
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