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Dave Beans

The £33K Insurance Quote

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http://www.bbc.co.uk/news/uk-england-manchester-12824940

A teenager has described his amazement after being quoted almost £33,000 to insure his second-hand car. Jake Redshaw, 17, from Salford, bought a six-year-old Vauxhall Corsa for £3,000 after he passed his test earlier in March. He told the BBC he expected comparison website insurance quotes to reach about £3,000 - but received a headline figure of £32,819 from the AA.

The company said the figure was a mistake and should not have appeared. Jake, from Eccles, was hoping to use his car to travel to Pendleton College, where he is studying IT, and his part-time job in a warehouse.

"The average [price] was probably about £12,000, £13,000 and the cheapest was £5,700. And I got £33,000 from AA," he told the BBC.

"I was amazed because I was expecting to pay £3,000, £4,000, but not that high.

"I can't insure it. If I want to go out I'll have to get my mum or dad to drop me off to go out. I can't be independent as I wanted to be.

"At 18 it apparently goes down, so I'll have to wait until then. But it's only a couple of months away so it's not that bad."

According to the Association of British Insurers (ABI), 12% of drivers are aged 17 to 24 - but they are responsible for almost 30% of accidents. In that age group, drivers are 10 times more likely to be involved in an accident than drivers aged over 30. A spokesman for the AA said the high risk associated with young male drivers meant the average industry quote for a UK male aged 17 to 22 was £2,750.

"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," said the spokesman.

"One of the insurance companies on our panel has produced a quote that just should not have appeared."

Last week, the Manchester-based Co-operative insurance launched a product that offers reduced rates to young drivers if they install a device to their car which monitors their driving. The AA said it would be offering a similar scheme later in 2011 and believes such products could boost the number of quotes for young drivers..

Perhaps he should just get a moped...

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Perhaps he should get a succession of cheap bangers for less than £200, register them to a false name and address and not bother to tax, mot or insure them, as the fine will be less than the insurance, if he gets caught. If he doesn't get caught then he's quids in.

It's the only logical conclusion to this ridiculous situation.

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Perhaps he should get a succession of cheap bangers for less than £200, register them to a false name and address and not bother to tax, mot or insure them, as the fine will be less than the insurance, if he gets caught. If he doesn't get caught then he's quids in.

It's the only logical conclusion to this ridiculous situation.

It seems in every part of life, the young are getting shafted left, right and centre...

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Insurance companies probably use an algorithm that adds a '0' to the price every time they detect the word 'Salford'. Sad really; I know several people from Salford and none of them has ever nicked my car.

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This was on the BBC news yesterday, in the papers and on the local news as well, not bad for something which is basically a non-story.

The numbers quoted are just arbitrary figures, the company either doesn't want the business so quotes a nonsense figure OR their algorithm has gone a bit nuts. It matters not that it is £33k, £100k, £200BN or £0.0000000000001, it's just not news worthy.

It reminded me of the numerous articles about person x selling item y on eBay and the 'bidding' has reached £100,000. Again, total non-stories.

Local news loved it though, even advising viewers to head to their Facebook page and look at some other randomly generated figures which users had submitted!

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Perhaps he should get a succession of cheap bangers for less than £200, register them to a false name and address and not bother to tax, mot or insure them, as the fine will be less than the insurance, if he gets caught. If he doesn't get caught then he's quids in.

It's the only logical conclusion to this ridiculous situation.

No need to even go that far - just go to the local scrapyard and buy a V5 for a 850cc Mini for a £20 backhander... then insure that for a couple of years first.

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No need to even go that far - just go to the local scrapyard and buy a V5 for a 850cc Mini for a £20 backhander... then insure that for a couple of years first.

I thought about that when I was 17, ie building up no claims on a non-existent, low insurance group car, then transfering it onto a real car. It would have been even easier then as there was no computer database when I were a lad, so you could have just invented a reg number and called it a Fiat Panda 750 or whatever.

Its clearly fraud but how would they ever prove it? Its not as if you're ever going to make a claim on the policy.

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Its clearly fraud but how would they ever prove it? Its not as if you're ever going to make a claim on the policy.

You might not, but what if a third party makes a claim against you?

In any case, quotes like this illustrate the problem of having a product, the purchase of which is a legal requirement but the price and availability of which is not regulated. The two are fundamentally incompatible: either the legal requirement to buy motor insurance needs to go, or the industry needs to be regulated such that everyone can buy at least a third-party only policy for a small, no frills car for a legally capped price. I'd have no problem with having serious strings attached to the capped product: maximum engine size of one litre, not valid in the middle of the night, one successful claim or motoring-related conviction against you and the policy is void, etc. etc. But a situation in which a driver who has passed his test and is otherwise perfectly legal simply can't use the road legally unless he's almost a millionaire is totally unsustainable.

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You might not, but what if a third party makes a claim against you?

I was referring to the policy on the 'non-existent car'. Clearly no one will make a claim because the insured car doesn't exist!

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I thought about that when I was 17, ie building up no claims on a non-existent, low insurance group car, then transfering it onto a real car. It would have been even easier then as there was no computer database when I were a lad, so you could have just invented a reg number and called it a Fiat Panda 750 or whatever.

Its clearly fraud but how would they ever prove it? Its not as if you're ever going to make a claim on the policy.

I might have known "someone" who did that, using a non-running moped in his garage for a few years - helped when it was time to insure a Ducati....

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Perhaps he should get a succession of cheap bangers for less than £200, register them to a false name and address and not bother to tax, mot or insure them, as the fine will be less than the insurance, if he gets caught. If he doesn't get caught then he's quids in.

It's the only logical conclusion to this ridiculous situation.

but if he gets caught he will get 6 points and that will make him uninsuarable and will cost him a fortune for a long time.

if he has an accident then he is royally fooked.

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I might have known "someone" who did that, using a non-running moped in his garage for a few years - helped when it was time to insure a Ducati....

I'm sure it happens a lot. When I was a teenager one or two people I knew had wrecks parked up on their parent's drive, never turned a wheel in months but were kept insured to build up no-claims for when they could afford to buy their 'proper' car. My idea was to take it a stage further and buy the insurance but just never get round to buying the car to go with it, never actually did it though.

Proving that someone is driving without insurance is one thing, but proving 'insurance without driving' would be a whole lot more difficult....

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I'm sure it happens a lot. When I was a teenager one or two people I knew had wrecks parked up on their parent's drive, never turned a wheel in months but were kept insured to build up no-claims for when they could afford to buy their 'proper' car. My idea was to take it a stage further and buy the insurance but just never get round to buying the car to go with it, never actually did it though.

Proving that someone is driving without insurance is one thing, but proving 'insurance without driving' would be a whole lot more difficult....

I can't see anything illegal about doing this, as long as you hold the V5 for the vehicle (especially given the level of data on inter-connected databases these days). Maybe buy a wreck, register it, then find somewhere to park it, cannibalise for parts, even sell to a breaker who is happy for you to keep the V5 in your name.

Mind you, given that new, young drivers are being quoted thousands for even the most basic level of insurance on cheap, low-risk vehicles, paying a potential £5k+ to build up 3 years' no claims bonus seems somehow counter-intuitive....

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Perhaps he should get a succession of cheap bangers for less than £200, register them to a false name and address and not bother to tax, mot or insure them, as the fine will be less than the insurance, if he gets caught. If he doesn't get caught then he's quids in.

It's the only logical conclusion to this ridiculous situation.

I've always felt there is a similar argument for vanity number plates,

Why pay £30,000 for a number plate with your initials? Just get one made up anyway. You are less likely to be caught (you are driving on a false plate!) and the fine is a lot less than £30,000.

Legal Disclaimer: Just kidding.

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I can't see anything illegal about doing this, as long as you hold the V5 for the vehicle (especially given the level of data on inter-connected databases these days). Maybe buy a wreck, register it, then find somewhere to park it, cannibalise for parts, even sell to a breaker who is happy for you to keep the V5 in your name.

Mind you, given that new, young drivers are being quoted thousands for even the most basic level of insurance on cheap, low-risk vehicles, paying a potential £5k+ to build up 3 years' no claims bonus seems somehow counter-intuitive....

Yes, I'm talking 20+ years ago when there were few databases, and insurance for young drivers in low value/low power cars cost about a tenth of what it does now.

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I've always felt there is a similar argument for vanity number plates,

Why pay £30,000 for a number plate with your initials? Just get one made up anyway. You are less likely to be caught (you are driving on a false plate!) and the fine is a lot less than £30,000.

Legal Disclaimer: Just kidding.

I remember seeing the police virtually dragging a young lad out of a battered looking Volvo they had just stopped at the roadside opposite my house, with the number plate 'TOM 1' (not that exactly but something very similar.)

I was sat near a computer at the time so typed TOM 1 into a reg number search which showed it didn't exist at all. He'd presumably thought "I like the registration TOM 1 so I'm just going to get a plate made and put it on my car" :rolleyes:

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Yes, I'm talking 20+ years ago when there were few databases, and insurance for young drivers in low value/low power cars cost about a tenth of what it does now.

Strange how young drivers are perceived to be 10/20 times more dangerous on the roads now then they were 20 odd years ago. Especially when you consider how much more dangerous it was to drive back then and how modern cars are much more safer and easier to drive.

Yes more people drive now, but it's all relative.

ps. Anyone got that protection against uninsured drivers on their premiums? How long do you reckon they'll last?

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I've always felt there is a similar argument for vanity number plates,

Why pay £30,000 for a number plate with your initials? Just get one made up anyway. You are less likely to be caught (you are driving on a false plate!) and the fine is a lot less than £30,000.

Legal Disclaimer: Just kidding.

You wouldn't last five minutes.ANPR cameras flag up anything that doesn't match as you drive past Mr.Plod as he sits there and munches his douighnuts.They are linked to tax,insurance and MOT databases.

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You wouldn't last five minutes.ANPR cameras flag up anything that doesn't match as you drive past Mr.Plod as he sits there and munches his douighnuts.They are linked to tax,insurance and MOT databases.

Yep! The ANPR computers are blisteringly quick chewing through nearly a million plates per second. Some algorithm must be used as is match is up consistently in 2-3seconds.

I've just insured my motorbike at £120 fully comp (up £50 from last year but way less than when I passed in 1999 at £1,4**). One of the joys of getting on in life.

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • up 5%



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