New driver gets eye-watering car insurance shock


An 18 year old has had the ultimate insurance quote - more than 80-times the value of the car!

Insuring young drivers is becoming increasingly costly around the world.  With more traffic on the roads and higher performance cars, statistically new drivers are generally at greater risk of having an accident.  However, insurance companies, particularly in the UK, may be pricing themselves out of business.

Newly qualified driver, Kaljeet Bansal, from Leeds in England, could only laugh in disbelief when she asked insurance companies for quotes on a car she was hoping would be her first.  Worth just £400 ($624 insurance on the 800cc engined Daewoo Matiz, with 70,000 miles (112k) under its tyres, ranged from a fraction under £20,000 ($31,200) to an eye-watering £33,800 ($52,700).

The young student - aiming for a future in accountancy - passed her driving test first time and, one week later, used an online insurance comparison website for estimated insurance premiums before going out to buy her car. In most cases, standard insurance companies refused to even provide a quote to insure a new driver, whilst others offered prohibitively high premiums.

Kaljeet's brother, Pardeep, commented, "The Starship Enterprise would be cheaper to insure.”  Perhaps Kaljeet should consider a career in vehicle insurance.