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£32,000 to insure a Teenager’s Second Hand Car

Published: 25/03/2011 by Comments

The real price to insure a Vauxhall Corsa is actually £32,819, an astounding figure for most UK citizens, not to mention a teenager dreaming of his first car. This eye-popping figure was what the 17 year old Jake Redshaw came across when he tried to shop for an insurance quote. Such an amazingly high sum isn’t for the faint hearted, but Jake did get an apology from the AA, the insurers who quoted him this much.

The Corsa cost only £3,000, and the quote is about 11 times more expensive than the car itself. While checking new offers, Jake found himself other ridiculous quotes that were about twice the value of his little Vauxhall. The young man chose patience over cost, and is now waiting until he turns 18. He said: “It’s not as if I was trying to insure a high-powered sports car. I was gobsmacked.”

Jake’s case isn’t the only one. Daniel Grey, age 18, also got a quote from the AA, a quote that reached a staggering £24,100. This happened only a week before Jake’s case, and this time a Volvo was involved. £24,100 and £32,819 are both insurance quote errors, but Jake Redshaw’s quote did stir controversies among many of UK’s young drivers in search of a quote. Jake also said: “The average was probably about £12,000, £13,000 and the cheapest was £5,700. And I got £33,000 from AA. I was amazed because I was expecting to pay £3,000, £4,000, but not that high.”

Insurers claim they have one side of the truth, and it appears to be for good reason. The Association of British Insurers shed some light about why young drivers find such high quotes. The 17 to 24 age group is the one responsible for about one third of the accidents registered in the UK. Jake’s quote was a fluke, and a spokesman from AA did apologize for it: “The quote he received is clearly ridiculous and this should not have happened. For that I apologise. Sometimes insurance companies would prefer not to have that business and rather than not quote they quote figures they do not expect to be taken up.”

Although this particular age group seems to be a “risky business” for insurers, they are ready to adopt an insurance type called “black box”. This type of insurance is meant for young drivers which are encouraged to avoid driving during late hours, or the whole night. A measure such as this will keep both the number of accidents and the price for quotes a little lower.

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