Student, 17, quoted £33,000 for insuring six-year-old Corsa he bought for £3,000
March 21, 2011
A teenager's dream of driving has stalled – after he was quoted more than £32,000 to insure his second-hand hatchback.
Jake Redshaw, 17, bought a six-year-old Vauxhall Corsa for £3,000 after he passed his test earlier this month.
The student, from Salford, said he expected online insurance quotes to reach a couple of thousand pounds. Instead he received a headline figure of £32,819 from the AA.
The AA apologised for the ‘ridiculous’ premium – but said Jake shouldn’t have been offered a quote at all.
His parents, Gary and Carol, have hit out, saying companies are pricing young drivers off the road. Jake’s cheapest fully-comprehensive quote was almost £6,000, twice the car’s value. The second most expensive quote was £21,000.
Jake, a former pupil at Buile Hill school in Salford, is studying IT at Pendleton College and works part-time in a warehouse at Salford-based telecoms distributor Nimans.
He lives with his parents on Portland Road in Ellesmere Park, Eccles.
He is now hoping his premiums will reduce when he turns 18 in May. He opted not to get a quote for third party cover because of the value of his car.
Jake, who spent around £600 over nine months on driving lessons and two tests, said: “I thought passing my test would be the hardest part about getting my own wheels.
“It’s not as if I was trying to insure a high-powered sports car. I was gobsmacked.”
Mum Carol, 45, said: “We all know that young lads are considered the greatest risk on the roads, but over £30,000 for insurance is a complete joke. They are being priced off the road.”
The £32,819 premium was quoted on behalf of the AA on the car comparison website Confused.com.
The AA said it was a broker with 20 insurance companies on its panel. A spokesman said: “The quote he received is clearly ridiculous and this should not have happened. For that I apologise.
“Historically, we have always asked our insurers to quote as often as possible so that we can, if necessary, offer appropriate terms for our customers.
“In practice, this has meant that some insurers have quoted very high premiums which don’t necessarily reflect the risk, but because they don’t really want the business. They therefore quote a price that has little chance of being accepted.”
The AA said car insurance premiums overall rose by 33 per cent last year, the fastest rate ever. In the 17-22 age group, they rose by 58 per cent.