From This is Money:
The contestant is a loyal and profitable customer who has been insuring their cars with you for years without making a claim. They phone and want to add their 17-year-old son or daughter to the policy. Do you?
A) Say: ‘No problem. Tell me all about them.’
B) Charge them the price that accident statistics demand, quadrupling the annual premium overnight.
C) Double the premium, but add a £500 or £1,000 compulsory excess if the youngster causes a crash.
D) Say: ‘No way. We don’t touch under 21-year-olds with a barge pole.’
Unfortunately, for young drivers and their parents, who are often footing the insurance bill, the most likely answer is B, C or D. And you almost need to be amaire to pay the premiums.
The simple fact is that young drivers are most car insurers’ worst nightmares – one in five new drivers will have a crash within the first six months of passing their test.
Andy Goldby, director of motor underwriting at Direct Line, says: ‘Drivers under 21 are t…