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Underwritten laws

Further to your reply of a couple of weeks back regarding young drivers. I paid for a fully comprehensive insurance for my 17-year-old grandson for the cost of £2,395.69 with BGL Group via Marks & Spencer. He passed his test two weeks ago. My daughter phoned the insurers the day he passed and they said his Insurance is now cancelled. They didn't even give us the opportunity of keeping the insurance at an increased price, which also means he has lost 6 months no claims bonus. Surely that can't be right? The idea of being a provisional driver is that you hope to pass your test. We have since taken Insurance with CIS at a premium of £5,300, which was the best price we could find.

Asked on 10 July 2010 by DT, North Chingford

Answered by Honest John
What? £5,300 for a year's insurance? It is typical that an insurer cancels the policy or increases the price when a young driver passes his or her test because, unsupervised, they then represent a greater underwriting risk. But £5,300 must be a record.
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