The Fixer: student car insurance

Is there any way to cut car insurance costs for younger drivers?

Updated: 
Have you been left out of pocket due to poor service or sharp practice? Do you have a money problem that won't go away?

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Dear Fixer,
My 19-year-old daughter is starting university in Manchester this autumn.

She passed her driving test about a year ago and now wants to buy a car with the money she has earned this summer and take it with her to university.

However, car insurance for students seems to be prohibitively expensive. Are there any ways to reduce the cost?

D Harman, Derby

Dear Ms Harman,

Many students get by without a car, but if your daughter wants to take one to university, she must have the correct insurance in place.

Some parents try to cut the cost of insurance for their children by taking out a policy with themselves as the main driver and the child as a named driver.

But this approach, known as "fronting", is illegal. Not only could lead any claims being rejected as a result. It could also result in the child facing criminal charges for driving without insurance.

Your daughter may, however, be able to reduce the cost of her insurance by opting for a "telematics" policy.

With insurance of this kind, a "black box" is placed in the car and used to track where and how she drives. If she proves herself to be a safe driver, she will then be rewarded with lower premiums.

The Fixer

Whatever your financial problem, write to themoneyfixer@aim.com and The AOL Money Fixer will get on the case.

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