A new insurance app has been launched that aims to get drivers a better deal by pitting providers against each other in a live bidding war. The makers of “reverse auction” app Honcho say that it will challenge traditional price comparison services by allowing insurers to improve their quotes on the fly to win business. It is initially aimed at improving the offering to young drivers, who pay up to 150 per cent more than the average driver to get insured. The free app works by allowing insurers to “bid” for business, cutting their prices to win the driver’s custom. As with regular comparison sites, a driver enters all their details, which are then sent to the insurers who start bidding to secure the customer. Read more: The cheapest cars to insure for young drivers The bidding process takes 30 seconds, goes through three rounds of bidding in real-time and encourages insurance providers to offer the best possible policy and price. During the process insurers … [Read more...] about Insurance auction app bids to cut costs for young drivers
Insurance cost for new drivers
NEW British drivers face forking out up to £7,000 before getting on the road for the first time. And the overall costs are only increasing in line with the price of cars and driving lessons. A study by financial comparison site GoCompare.com revealed young drivers spend almost £7,000 on a new car, driving lessons, insurance and extra fees. Buying a new car was, of course, the largest single cost for young drivers, who spent an average of £4,276 on their first set of wheels. Insurance was the next most significant expense, with average first year premiums for 17-year-old drivers totaling £1,964. And the overall financial burden of owning a car has risen by 20 per cent increase in just ten years, as young motorists forked out just £5,731 to get on the road in 2009. The average amount 17-year-old drivers spend to get on the road First car - £4,276 Road tax - £120 Insurance - £1,964 Provisional driving licence - £34 Driving lessons to … [Read more...] about New drivers are forced to pay up to £7,000 just to get on the road for the first time
BLAMELESS drivers have seen a £102 price hike in their car insurance on average when claiming for accidents that weren't their fault. Meanwhile, those who caused the crashes saw a £136 rise when coming to cover renewals - a mere £34 more on average. In total, innocent British motorists have suffered a £180million increase in premiums. That equates to a 26-per-cent rise in car insurance policy costs for blameless drivers, with those at fault seeing prices increase by a third. The study, carried out by cover comparison site uSwitch, also revealed that one in 10 Brits do not declare accidents to their insurance provider despite not being at fault. This is mainly because drivers want to protect their no claims discount and because they're worried about adding a claim to their policy. However, not disclosing non-fault accidents could invalidate your insurance. Future claims may also be rejected by the cover provider while, in extreme cases, insurers will charge a premium … [Read more...] about Drivers slapped with over £100 rise in insurance bills for accidents that weren’t their fault – almost the same as motorists who WERE to blame
BRITISH drivers are splashing out less on their first car than they did 60 years ago, according to a recent study. Brits currently spend an average of just £4,627 on their first car - that's over £1,300 less than their grandparents. Conducted by CarGurus, the study found new drivers in the 1950s were happy to fork out around £5,800 for their first motor, and an average of £6,025 in the 60s. Those numbers dropped significantly to reach an all time low in the 1980s, when first time drivers were paying just £3,281 for their wheels. Today's generation are still landing better deals on their first cars than baby boomers did - and a lot of that comes down to the models they are buying. The most popular first car for young drivers in the current decade is the Ford Ka, which can fetch as much as £8,500 for a newer used model, and as little as a few hundred pounds for an older motor. Cheap Fords have dominated the most popular choices among new drivers for the last … [Read more...] about New drivers are spending less on their first cars than in the 50s and 60s
Proposed driving licence changes could restrict young drivers from travelling on roads at night-time in certain circumstances. Figures showing that motorists aged between 17 and 24 are involved in a quarter of all crashes in the UK have prompted the prime minister to consider a "graduated licensing system". Although the changes are not set in stone, Mirror Online suggested the scheme could mimic others in Australia, New Zealand and the United States Newly-qualified drivers could be prohibited from driving late at night or carrying passengers under the age of 25 unless supervised. Theresa May has pledged to look at the "graduated licensing system" after Labour MP Jenny Chapman told MPs that one in four young drivers was involved in an accident within the first two years of starting to drive. The Darlington MP, speaking during Prime Minister's Questions, urged Mrs May to look at introducing a graduated scheme which would allow new drivers to build up their skills and experience … [Read more...] about Should new drivers have a probationary period on the roads?