New Driver Cover
Passing your driving test is obviously a very exciting time but this can be short lived when you look at buying insurance for the first time.
Many people try to avoid this either by driving their parents’ car or by buying a relatively cheap small car that ends up being insured by Mum or Dad as the owner/keeper/main user in an effort to keep down the cost of insurance.
Whilst understandable, this is often technically incorrect and the practice of “fronting” is frowned upon by insurers. The BBC's Money Box programme estimates that over 1,000 claims involving young drivers are being rejected by insurance companies each year due to the risk having been misrepresented to them, and that figure is going up.
If the newly qualified driver is not the policyholder they are also not earning any no-claims discount of their own, and if they have the misfortune to have an accident it is the policyholder (often Mum or Dad) who actually has the claim, not the driver who had the accident. This can have a significant impact on future motor insurance prospects and costs for Mum or Dad, even on their other normal day-to-day vehicles.
So how do you build up a claims history (or preferably no-claims history!) and pay a reasonable premium in the meantime? Our partners at Marmalade use black box technology to monitor driving enabling them to offer a competitive premium for newly qualified drivers, they insure only newer cars (up to 9 years old) and up to 1.4 litres because they are safer, and being the policyholder means you are earning your own no-claims discount, reducing future premiums.
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