July 30th, 2010 Administrator
A learner driver has been quoted a staggering £17,000 to insure his £2,000 Vauxhall Corsa.
Student James Hayes, who turns 17 next week, saved for months to buy his modest one-litre car but has been astonished at the sky-high quotes for insurance.
He will have to work flat out over the summer to pay the premiums.
His case highlights how insurers are increasingly using prohibitive premiums as a weapon against young male drivers.
The failure of insurers to offer reasonably priced insurance is being blamed on an explosion in uninsured drivers, which drives up the cost of cover for others and leads middle-class parents to commit a crime by putting themselves as the main driver on their children’s cars.
This reluctance to insure young men is based on accident statistics.
Men aged 17 to 20 are almost ten times more likely to be killed or seriously injured on the roads than older drivers, while one in five new drivers has a crash within six months of passing their test, according to road safety charity Brake.
The Association of British Insurers (ABI) says the average claim of a younger driver is also three times more than older drivers.
But their refusal to cover male teenagers for affordable premiums has led to almost a quarter driving uninsured, according to Brake.
And this ends up costing all motorists as they foot the £500million annual bill for accidents caused by uninsured drivers. 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.’
Car insurance premiums have rocketed 11 per cent in the past three months, according to the AA. 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.
Mr Hayes says: ‘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 most expensive comprehensive quote he received was from The Green Insurance Company at £17,000 per year.
Mr Hayes, who is studying for his A-levels, earns £5.60 per hour working at a supermarket during the holidays and weekends. As well as his insurance, road tax and MoT, he will also have to pay for driving lessons at £13 per hour.
Many youngsters get their parents to insure their car and go on the policy as a named driver – an illegal process known as ‘fronting’.
Mr Daley says: ‘This really is a middle-class crime. Families think: “Well, everybody else is doing it so why shouldn’t we?” ‘
Mr Hayes, who hopes to work in the film industry after he finishes his studies, does not want third party-only insurance and does not want to invalidate his insurance by fronting.
Direct line told him that it keeps all quotes generated by customers – so if someone initially got a quote for themselves, decided it was too expensive and got a new quote with their parent as the main driver instead, the insurer would not pay out on this policy because it has obviously been fronted.
A spokeswoman for Direct line says: ‘Fronting is fraud and the consequences could be grave – ranging from an additional premium being required, to the cancelling of a policy (and therefore non-payment of the claim) as well as the policyholder being added to the financial industry’s fraud database.’
Malcolm Tarling of the ABI says: ‘It is not uncommon for premiums for young drivers to exceed the value of their car.
‘The main risk is not loss or damage to the car itself, but the potential cost of personal injury awards made against the driver if they cause an accident. This can easily run into tens or hundreds of thousands of pounds.’
The best way for young drivers to minimise the cost of insurance is to shop around using comparison sites, such as Moneysupermarket.com, GoCompare.com, ComparetheMarket.com, Compare.dailymail.co.uk and Tiger.co.uk.
You could also find a local specialist broker on the British Insurance Brokers’ Association website www. biba.org.uk or by calling 0870 950 1790. For the cheapest cars to insure, visit www.thisismoney.co.uk/cheap
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.
‘Start with a small-engine runaround in order to build driving experience.’
From : Dailymail.co.uk
Txt-Drive driving school in Bedford has FULLY QUALIFIED driving instructors that can deliver the PASS PLUS course to you. The PASS PLUS course costs just £150.00 for 6 hours of driving lessons. The PASS PLUS course is designed for new drivers that have recently passed their driving test as it helps to develop their existing skills & it also provides more experience for the new driver. The PASS PLUS course covers motorway driving, night driving, all weather driving & much more. To book driving lessons in Bedford with Bedford driving school Txt-Drive, please call : 0800 8600 983 (FREEPHONE). To book yourself on the PASS PLUS course after your driving test call a Txt-Drive driving instructor in Bedford on the above FREEPHONE number or visit www.txt-drive.co.uk.
Posted in Bedford, Driving, Driving Instructors, Driving Tests, Pass Plus, Road Safety, Txt-Drive, car insurance | No Comments »
July 27th, 2010 Administrator
Millions of parents are said to be breaking the law in order to save money on car insurance for their children.
New figures suggest that 41% of parents deliberately lie when filling out policy applications.
Parents are claiming to be the main drivers on the policy, when in fact it is one of their children who is the main driver, or owner of the car.
The practice known as fronting potentially offers large savings but could lead to prosecution.
‘Risky move’
Research by Co-operative Insurance found that 41% of parents were actually fronting policies at the moment, and 61% would do so in the future.
Typically, insurance companies identify the practice when a car is registered to the parents’ address in say, Manchester, but the car seems to spend most of its time in Leeds, where a child may be studying at university.
The industry is warning that it is an extremely risky practice.
“The view that motor insurance fronting is harmless and does not hurt anyone could not be further from the truth,” said Tim Franklin, of Co-operative Financial Services.
“Parents who believe they are helping their children to save money by fronting are not only risking prosecution, but harming their chances of obtaining insurance in the future.”
Costs
Tom Dunn is a 17-year-old who is learning to drive in Milton Keynes.
But that could be the closest he ever gets to owning a car for himself, because he acknowledges that he cannot afford to pay for the insurance.
“I think I would be able to buy a second-hand car, but I do not think I would ever be able to buy the car and pay for the insurance,” he said.
In a test to see how much Tom would have to pay to insure the car he is learning in – a Vauxhall Corsa – the cheapest was £4,000. That was assuming the car was kept on a private driveway.
Some parents are trying to reduce such costs by any means they think is legal.
Tom’s driving instructor, Bryan Greenall, said he was seeing more and more parents who are tempted to break the law by fronting their car insurance.
“I basically tell them to make sure everything is above board and legal. You do not want to be going down the route of something that is not legal, even though you do not know it is not legal,” he said.
Premiums
At the Motor Insurers’ Bureau – set up to compensate victims of uninsured drivers – they insist the high cost of insurance should never justify lying on an application form.
They say the premiums being charged are not excessive.
“Yes, £4,000 is an awful lot of money but it accurately reflects the risk posed by young drivers,” said Ashton West, the bureau’s chief executive.
Mr West is keen to stress that fronting was an attempt to obtain money by deception, and therefore amounted to stealing.
And it was not just a criminal record parents could be saddled with. Insurers could refuse cover, and deny insurance in the future.
“If you cause injury to a third party, you will have to pick up their costs as well,” said Mr West.
“That could be hundreds of thousands of pounds, and those consequences could stick with you for the rest of your life.”
To see for ourselves whether parents were aware of the illegality of fronting, the BBC spoke to some as they parked up in the centre of Milton Keynes.
Within the space of 15 minutes, we spoke to three parents who told us they would be perfectly happy to put themselves as the main driver on a policy, even when it was not true.
“Anything that saves money is a good idea,” one woman said.
When asked whether she knew it was illegal, she said, “I had no idea.”
Another woman admitted to actually having fronted in the past.
But she too was unaware of the illegality, or of the consequences.
The survey says hard times may be forcing parents to try and save money on insurance. But it warns that if they do so illegally, the ultimate price could be prosecution.
From : BBC website
Bedford driving school Txt-Drive offers the PASS PLUS course to newly qualified drivers in Bedford. The PASS PLUS will usually reduce the insurance by one year no-claims (this can be a saving of HUNDREDS of pounds). The course gives further experience to the driver & allows them to develop their driving skills – which they have learnt when learning to drive on their driving lessons.
Posted in Bedford, Driving, Pass Plus, car insurance | No Comments »
May 31st, 2010 Administrator
Charlotte from Bedford passed her driving test in Bedford.
She passed on her 2nd attempt & made just 5 minors during her driving test in April 2010.
Charlotte joined Txt-Drive from another driving school, which uses BMW Minis, as she was not happy with her driving instructor & had failed her driving test before.
Charlotte wrote to Txt-Drive to say : “I have not been driving that long with Txt-Drive, as I was previously with another driving school. In my previous driving lessons with the other driving school, it was not an ideal environment as it did not help my confidence. With Chris from Txt-Drive I quickly became a lot more confident in my driving & my abilities & passed second time with only 5 minors!! The confidence boost Chris gave me really helped & look at the result! Thanks Chris, I can’t wait for Pass Plus!!”
She did indeed go on to take the Pass Plus course with Txt-Drive & is just waiting for her certificate to arrive in the post.
Charlotte booked driving lessons in Bedford with Txt-Drive by calling the FREEPHONE number 0800 8600 983. You can also request a FREE call back from a Txt-Drive driving instructor by leaving your details on www.txt-drive.co.uk & an instructor will call you back to discuss any questions you may have or will book you in for your first driving lesson.
Posted in BMW Mini, Bedford, Driving, Driving Instructors, Driving Lessons, Driving Tests, Pass Plus, Txt-Drive | No Comments »
May 31st, 2010 Administrator
Tom passed his driving test FIRST TIME & made just 6 minors.
Tom, a Sharnbrook Upper School student, took driving lessons in Bedford with Txt-Drive driving instructor Chris Deverell.
Tom was so happy with his experience with Txt-Drive that he recommended 3 friends to start taking driving lessons with Txt-Drive driving school.
Shortly after his driving test Tom said : “I would continue to thoroughly recommend Txt-Drive driving school as I have already recommend many friends. Thnks Chris, can’t wait for the Pass Plus course mate.”
Tom did go on to complete the Pass Plus course with Txt-Drive & is waiting to receive his certificate from the DSA. He is also hoping to receive a discount on his car insurance when he buys his own car.
You can book driving lessons in Bedford with a Txt-Drive driving instructor in Bedford by calling FREEPHONE 0800 8600 983 or you can text DRIVE to 80039 (standard text message rate). For more information or to request a FREE call back from a Bedford driving instructor you can enter your details on www.txt-drive.co.uk
Posted in Bedford, Driving, Driving Lessons, Driving Tests, Pass Plus, Txt-Drive | No Comments »
March 17th, 2010 Administrator
A hi-tech device which records the time of day a car is on the road will be used to discourage young drivers from getting behind the wheel after 11pm.
Drivers who agree to have the I-kube fitted will have their insurance premiums reduced by up to 40 per cent, and its makers hope the device will dramatically reduce the number of fatalities involving young people on the roads between 11pm and 5am.
A spokesman for I-kube said: ”Learning to drive is a rite of passage for many young people, but getting on the road can be costly in more ways than one.
”The use of this type of technology is more common in Europe, particularly Italy and Spain and not just for young drivers. Pay as you drive systems have been tried here, but we wanted to come up with something much simpler.
”Insurance premiums are typically very high for young drivers because the risks of them being involved in an accident are relatively high.
”For parents of teenagers, it’s understandably a real concern. We know that driving between 11pm and 5am is the most dangerous time for young drivers.
”So, by discouraging drivers from being on the roads between these hours, we reduce their risk of accidents, and therefore can significantly reduce the cost of their insurance.”
The I-kube works using a small hand-sized GPS device, which is installed on the car in around 10 minutes behind the dashboard.
It sends out a signal to advise the insurance company when the car is driven between the hours of 11pm and 5am.
If the car is driven during this time, known as the “red hours”, the policy holder will be charged £45.
Makers of the I-kube came up with the idea after it was revealed 17-25 year-olds made up more than a quarter of deaths as a result of road traffic accidents between 1999 and 2008.
And of the fatal accidents involving that age group, more than one in three happened between 11pm and 5am.
One in ten happens between midnight and 1am. Men are also twice as likely to be involved in a car crash than women.
A spokesman for I-kube added: ”Early indications are that I-kube is working brilliantly.
”Over 80 per cent of policyholders already insured with us are not driving at all during the red hours.”
”It’s proving particularly popular with parents of students who might be a long way away, as it can offer real peace of mind that their son or daughter isn’t running the risk of being on the roads late at night.
”We see the use of this sort of technology as a win-win for young drivers. It makes driving more affordable and ultimately, far safer.”
From : Telegraph website
Low cost driving lessons with Bedford driving school Txt-Drive are offered in addition to low cost Pass Plus courses. Become a safer driver by doing the Pass Plus course in Bedford. You will develop your existing driving skills (which you have gained whilst learning to drive) & have new driving experiences like driving on motorways, rural roads, night driving & all weather driving. Completion of the Pass Plus course should result in lower car insurance as you will be more experienced & safer driver.
Posted in Bedford, Driving, Pass Plus, Road Safety | No Comments »
