Bought By Many helps young people drive down the high cost of car insurance
Partnership with The XS Cover Company allows young people to avoid ‘boy racer’ premiums
London, 23 May 2013 – Bought By Many, the company bringing people power to insurance, has partnered with The XS Cover Company to create an offer that will help young drivers reduce the cost of insuring their cars. The average cost of a fully comprehensive car insurance policy for people aged 17-20 is about £3000[i] and as a recent government report highlights, many young drivers are plagued by the ‘boy racer’ tag, finding themselves saddled with notoriously high costs, or unable to get insurance at all. The new insurance offer will allow young drivers to save hundreds of pounds by insuring their excess through Bought By Many.
Traditionally insurers will offer cheaper premiums if a driver agrees to a higher excess - the amount the driver is responsible for in the event of a claim. The Bought By Many offer will allow drivers to increase their excess to as much as £2000 with an insurer to reduce costs, but offset the risk of having to pay this amount by insuring it with the XS Cover Company instead. The table below outlines example savings based on a 19 year old student who’s been driving for one year and is insuring a 1-litre Vauxhall Corsa with an annual policy.
| Insurer | Compulsory Excess | Cost of Insurance with £250 Voluntary Excess |
Cost of Insurance with £750 Voluntary Excess | Difference | Cost of Insuring Total Excess via Bought By Many |
Saving | Source of Quote | |
| Admiral | £250 | £2,628 | £2,353 | £275 | £40 | £235 | Moneysupermarket.com | |
| Elephant.co.uk | £250 | £2,683 | £2,400 | £283 | £40 | £243 | Moneysupermarket.com | |
| Co-op | £400 | £3,259 | £2,824 | £436 | £40 | £396 | Co-op Website | |
Many young drivers find it hard to get a reasonable deal on their insurance, with statistics showing that people under the age of 25 are more likely to be involved in accidents than drivers over the age of 25. This has meant that young people are being forced to seek a better deal on their insurance by not giving lifts to friends, not driving at night, or by having a "black box" fitted to track their driving.
“A lot of young drivers are being offered extortionate premiums and it’s making it very difficult for them to get on the road,” said Julie Rodilosso, CEO at The XS Cover Company. “Together with Bought By Many, we’re hoping to make a difference to young drivers by allowing them to club together to bring down their insurance costs.”
“Programmes like the BBC’s Barely Legal Drivers reinforce poor stereotypes, when the vast majority of young drivers are actually safe,” said Steven Mendel, CEO and co-founder of Bought By Many. “This excess offer comes at the right time for young people still battling with costs, and through our new partnership with The XS Cover Company we’re hoping to give them an option to help them afford to run a car.”
Bought By Many helps consumers club together into social buying groups to get a better deal on insurance - the more people who buy, the cheaper it becomes. Young people can join the group at the Bought By Many website: Young Drivers Insurance.
Other buying groups from Bought By Many which people can register for include: French Bulldog Insurance, Horse Riding Insurance for Children, Over 50s iPad and iPhone Insurance, and Home Business Insurance for Mums.
[i] The average price for a 17-20 year-old male is £2,960 - MoneySavingExpert
About Bought By Many
Bought By Many uses social media to level the insurance playing field for consumers. It connects people with similar insurance needs in social buying groups. These groups can consist of people who share a postcode, a profession, a passion – or anything else. It then creates the opportunity to buy insurance on more favourable terms than would be available to them as individuals. And for insurers, it creates the opportunity to reach the risk segments they most value, profitably, and at meaningful scale. For more information visit boughtbymany.com.
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