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Has the World of Car Insurance Gone Mad?

May 31, 2011

We have all heard about how car insurance for teenagers is astronomical.  If you are a young driver then you can expect to pay quite a bit if you want to get car insurance.  The reason for this is because young drivers do not have experience on the road and they are considered to be a higher risk due to them being more reckless when driving.  So it is understandable that they will be expected to pay a bit more for car insurance.  But what about being asked to pay one hundred and twenty times more than the value of your car?

Well that is exactly what happened to a teenager from Berkshire when he requested a car insurance quote for his £600 Vauxhall Corsa.  The eighteen year old was in for a big shock when his quote came in at a staggering £72,000 for one year’s car insurance.  This is a ridiculous sum of money which will only serve to keep the youngster off the road so how is he expected to gain any driving experience with quotes like this.

The madness continued when the insurance company in question, First Central Insurance decided that the teenager should be expected to pay an upfront payment of £16,745, followed by ten monthly payments of £5,540.  Thankfully he looked around and then found himself a much more affordable yearly quote of just under £2,500. 

A source from First Central Insurance said that it was a computer error which caused the massively inflated quote but this is not the first time a young driver has been quoted exorbitant prices for car insurance.  Earlier this year a teenager from Southport claimed that he had been quoted £24,000 for car insurance for an eleven year old Volvo which he had paid £700 for.  He had been paying £2,500 for a previous car insurance quote but when a freak accident on black ice caused his car to be written off his new quote jumped by almost £20,000.   

It would seem that many of these car insurance companies are choosing to provide unrealistic quotes to certain groups that they would just rather not insure.  This means that many young drivers are being punished for the actions of others.  It is time that something was done about this problem as young drivers are never going to be able to get out on the roads and build up their driving experience with quotes like this.