£24k is a strange definition of ‘budget’ car insurance

Cheap car insurance for young drivers received another nail in its coffin recently when an 18 year old student received a car insurance rate quote for £24,000 – on a used £700 Volvo.

After Daniel Grey had to write off his previous car due to an accident on icy roads, he purchased a 1999 Volvo S40 for his motoring needs. He then budgeted for an increase in his motor car insurance costs, which had previously been £2,500 a year.

However Daniel, who takes advanced driving lessons and has a Pass Plus certificate, was shocked to be quoted £24,000 – enough to make a down payment on the purchase of a house.

The Crossens native had turned to AA Insurance for a price quote for his 1.6 litre saloon Volvo. He was utterly flummoxed that he was quoted such a ridiculously high premium, he said, stating that he would hardly be racing the streets at night in a Volvo that was considered staid 12 years ago when it was new. In fact Daniel stated that his car was such a plodder that it was an effort getting it to move at all, let alone travelling at high speeds.

An AA Insurance spokesman agreed with Daniel on the absurdity of the quote the teenage boy had received.  As a broker with in excess of 20 car insurance companies on its panel, AA Insurance has specifically told insurers to not issue such outrageous quotes, the spokesman continued.

The spokesman added that some panel members occasionally quote extremely high premiums not to reflect the risks involved but to avoid unwanted business.

However he also stated that the quote Daniel received is patently ridiculous and should never have happened. Adding that the majority of the companies on AA’s panel would never issue a quote in the event of such a massive premium, he said that there are one or two who have not yet complied with AA policy.

© 2021 All rights reserved. Reproduction in whole or in part without permission is prohibited. See our copyright notice.

What do you think?

Please note that email addresses are not visible on approved comments.