'Can my son claim a refund from his insurer after he passes his driving test?'
Your questions answered.
Question: I read recently that young drivers will see a big decrease in premiums when they get their full licence. We are shopping around for a second-hand car for my son and he will take out his own policy on this. But his test is coming up in September. We are hoping he will pass and if this happens I'm wondering if there is any way of getting some money back from the insurer for his cover on our policy?
Finian, Co Galway.
Answer: The short answer is yes, your son should have recourse to a refund if he gets his full licence. But your question is very timely, as it's important to do your homework before you take out the policy. You should always ask, prior to signing any policy documents, what the insurer's refund process is in a case such as yours.
An insurer today should be able to give you a pro-rata amount for what your son will receive back upon passing his full licence driving test.
Just to note also, some insurers often have a target market that they want to sell to, so if you fall outside this remit then the terms they offer can be unfavourable. So, you need to know which insurers want young drivers as customers - not all of them do.
Another important consideration is what type of car you buy your son.
Obviously, price is a big factor, but you should also think about the impact the vehicle type and age will have on the insurance. Look at the model and engine size of the car you are going to buy. Don't be afraid to ask for different quotes for various cars.
Jonathan Hehir is CEO of online insurance broker Coverinaclick.ie