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Car Insurance - £72,000 to cover a £600 Corsa

Joe Chute, an 18-year-old living in Slough, Berkshire was amazed to see that he had to pay a whopping £72,000 in order to insure his £600 vehicle. He didn’t believe his eyes when he saw the incredible fee and wondered if it was real or just an error made by the car insurance firm. The car Joe drives is a Vauxhall Corsa which has a tiny 1 Liter engine. Something was really amiss because the insurance was 120 times the value of the car itself.

Joe chose the Corsa just because it had the small engine and believed this will surely spare him a large amount of money on insurance. When the young man checked with First Central Insurance he got a first payment consisting of £16,745 and another 10 other payments of £5,540 each. The cheapest insurance he managed to find was £7,000. Joe Chute said: “If I had that kind of money, I wouldn't need to drive. I could get taxis everywhere or hire a chauffeur. Insurance companies are punishing me because of my age and where I live.”

Robin Pegg from First Central Insurance said that Joe was one of the unfortunate ones to get such a price. The 70 thousand pound insurance quote happened due to a computer malfunction, but Mr. Pegg also said that the young man “did not fit the company’s customer profile.” There was a reason why First Central was adding more zeroes to the quote as the company didn’t want certain people to sign for a quote with it.

Joe did find an insurance to fit his pocket in the end, but this wasn’t cheap either. At £2,469.09 the quote was still a lot cheaper than what he previously had found.

Insurance prices are getting higher and higher in the UK as a result of last year’s 40% increase in premiums. This isn’t any good news for young drivers, who may feel discouraged to even buy a car in the first place and settle for taxis, biking, or plain walking.

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