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This is a long thread! Warning you now!
This sort of stemmed from a debate I had with a friend over the Pay As You Drive Insurance scheme, which has the restriction for young drivers not to drive between 11pm & 6am, or you’ll be punished financially.
It’s a known fact that younger driver’s are statistically more likely to have an accident and make a claim, especially at night. Now I started to think, what percentage of these were younger drivers uninsured? Let’s not forget, an accident with an uninsured party still means the innocent person will have to claim through their insurance, thus pushing claims up.
The stats the insurance companies tend to draw the attention away from, is the amount of young driver's driving around without insurance because they can't afford the premium, even for the basic Third Party (which I think has almost been scrapped). Why do you think there are so many modified cars around at night? I'd bet a big percentage of them either do not have all/any mods declared and I would put my neck on the line and say that a healthy percentage of the cars are most probably uninsured. They have an accident, as they’re young, the rest of England’s young driver’s are affected.
I was reading a thread a while ago and someone mentioned about a flat rate fee to be paid for first time drivers, instead of the PAYD scheme. I’ve argued this also and in theory, it could work with the following restrictions (all info is not in anyway been thought through, but to be used as a guideline):
Young People Policy insurance is £1000 to start with.
1. If you do Pass Plus and/or any other Post Driving Test Scheme, your premium falls by £150 per scheme (or maybe 1/8th per scheme?). Incentive for people to do further driving courses either way
2. No car over insurance group 4-5 can be insured on the 'Young Driver Policy' (Group 5 cover's 1.9 turbo diesels, so may be an idea to cap it at Group 4!)
3. If you are found at fault for an accident, your insurance is terminated with immediate effect.
4. If you receive any points on your licence, the same applies as point two.
5. You do not modify the vehicle in any shape or form.
6. The contract is for 6 months, and if you stick to the above, you'll pay a further £X (say, 1/5th of original premium) amount for another 6 months.
7. Stick to these guidelines for 12 months, you will qualify for insurance for normal people!
I'd leave age of the car as one for you guys to consider, an older car may be cheaper to repair but also may be easier to steal...
There was more to the list but I can't think of it right now! But the basis is, we'll give you cheap (er) insurance, under the strictest terms & conditions, breaking these means you agree to terminate the contract of insurance.
I personally think PAYD works well in theory, but it'll never work on a big scale as for most people, it's too precise. Give us kids one chance to prove our worth, under the insurance company special rules for a cheaper quote. If it works, the company has a repeat customer, making their whole point in being a business worthwhile. The young driver market can be a gold mine, just don’t restrict when they drive, just what they can drive!
Equation from above: £1000 - £125 (1/8th) = £875
After 6 months: £875 + £175 (1/5th of £875) = 1,050
So after 18 months of driving, you'd have spent £1,050, and gained yourself a years no claims. The company could go further and offer a top up insurance for another 6 months at a certain amount (say £400) which will leave you having paid under £1500 and earning 2 years NCD.
Would that not encourage you to be a safe new driver? Does a contract like this not give young driver's incentive to not only insure their car, but to drive sensibly?
This sort of stemmed from a debate I had with a friend over the Pay As You Drive Insurance scheme, which has the restriction for young drivers not to drive between 11pm & 6am, or you’ll be punished financially.
It’s a known fact that younger driver’s are statistically more likely to have an accident and make a claim, especially at night. Now I started to think, what percentage of these were younger drivers uninsured? Let’s not forget, an accident with an uninsured party still means the innocent person will have to claim through their insurance, thus pushing claims up.
The stats the insurance companies tend to draw the attention away from, is the amount of young driver's driving around without insurance because they can't afford the premium, even for the basic Third Party (which I think has almost been scrapped). Why do you think there are so many modified cars around at night? I'd bet a big percentage of them either do not have all/any mods declared and I would put my neck on the line and say that a healthy percentage of the cars are most probably uninsured. They have an accident, as they’re young, the rest of England’s young driver’s are affected.
I was reading a thread a while ago and someone mentioned about a flat rate fee to be paid for first time drivers, instead of the PAYD scheme. I’ve argued this also and in theory, it could work with the following restrictions (all info is not in anyway been thought through, but to be used as a guideline):
Young People Policy insurance is £1000 to start with.
1. If you do Pass Plus and/or any other Post Driving Test Scheme, your premium falls by £150 per scheme (or maybe 1/8th per scheme?). Incentive for people to do further driving courses either way
2. No car over insurance group 4-5 can be insured on the 'Young Driver Policy' (Group 5 cover's 1.9 turbo diesels, so may be an idea to cap it at Group 4!)
3. If you are found at fault for an accident, your insurance is terminated with immediate effect.
4. If you receive any points on your licence, the same applies as point two.
5. You do not modify the vehicle in any shape or form.
6. The contract is for 6 months, and if you stick to the above, you'll pay a further £X (say, 1/5th of original premium) amount for another 6 months.
7. Stick to these guidelines for 12 months, you will qualify for insurance for normal people!
I'd leave age of the car as one for you guys to consider, an older car may be cheaper to repair but also may be easier to steal...
There was more to the list but I can't think of it right now! But the basis is, we'll give you cheap (er) insurance, under the strictest terms & conditions, breaking these means you agree to terminate the contract of insurance.
I personally think PAYD works well in theory, but it'll never work on a big scale as for most people, it's too precise. Give us kids one chance to prove our worth, under the insurance company special rules for a cheaper quote. If it works, the company has a repeat customer, making their whole point in being a business worthwhile. The young driver market can be a gold mine, just don’t restrict when they drive, just what they can drive!
Equation from above: £1000 - £125 (1/8th) = £875
After 6 months: £875 + £175 (1/5th of £875) = 1,050
So after 18 months of driving, you'd have spent £1,050, and gained yourself a years no claims. The company could go further and offer a top up insurance for another 6 months at a certain amount (say £400) which will leave you having paid under £1500 and earning 2 years NCD.
Would that not encourage you to be a safe new driver? Does a contract like this not give young driver's incentive to not only insure their car, but to drive sensibly?