(edit title) Car Insurance in Sweden, am I missing something? Does it really work this way? Options

[Snood]

Hi Folks,

I have been thinking about car insurance recently (I don't have a car but may be considering getting one within the next year). Do I understand correctly that here you insure the car, then anyone who's got a license, and permission to drive a car, can do so without notifying the insurance company?

If this is the case, the way things are done in the UK seem to be an absolute racket. It makes much more sense (for the customer) to insure the vehicle, rather than insuring individuals.

If I understand correctly, the way it works in Sweden is much better, with anyone able to drive anyone else's car. How do insurance companies here cover higher risk drivers such as teenagers and people with a claim history?

[carterhayes]

If I understand correctly, the way it works in Sweden is much better, with anyone able to drive anyone else's car. How do insurance companies here cover higher risk driver ... (show full quote)

If I understand correctly, the way it works in Sweden is much better, with anyone able to drive anyone else's car. How do insurance companies here cover higher risk drivers such as teenagers and people with a claim history? ... (hide full quote)

When i grew up in the forests of Småland everybody at the age of 18 pretty much needed a car... What i remember from those days was that my friends cars - for example a WW Golf GTI 16 v was extremely expensive to insure compared to my Nissa Micra. The price of the insurance is related to how many cars of that brand get stolen in your area? How many cars of this and that brand are involved in accidents. The more prestige, the bigger engine and other factors decide the price of the insurance and as a driver you can reach a maximum bonus where the insurance get cheaper (or less expensive) depending on how many years without damage you have.

[John.Smith]

Snood,
Yes your understand correct (more or less). There can be some small limitations such as no drivers under the age of 21 or some such.. but depends on the details of the particular policy.

[Bender B Rodriquez]

Hi Folks, I have been thinking about car insurance recently (I don't have a car but may be considering getting one within the next year). Do I understand correctly that he ... (show full quote)

Hi Folks,

I have been thinking about car insurance recently (I don't have a car but may be considering getting one within the next year). Do I understand correctly that here you insure the car, then anyone who's got a license, and permission to drive a car, can do so without notifying the insurance company?

If this is the case, the way things are done in the UK seem to be an absolute racket. It makes much more sense (for the customer) to insure the vehicle, rather than insuring individuals.

If I understand correctly, the way it works in Sweden is much better, with anyone able to drive anyone else's car. How do insurance companies here cover higher risk drivers such as teenagers and people with a claim history? ... (hide full quote)

Yes, it works exactly as you described it. The owner and main user of the vehicle should have the insurance, but anyone with a license is allowed to drive the vehicle.

Premiums are decided according to the make of the car, the power, the age of the policy holder, etc. Accident free years does not matter very much. Also, insurance companies generally offer incentives for new customers, so it is often better to change company regularly.

[Rick Methven]

Snood,. Yes your understand correct (more or less). There can be some small limitations such as no drivers under the age of 21 or some such.. but depends on the details of the particular policy.

The age of the driver does not affect the price of the insurance itself but normally if anybody under 25 is driving the car when it has an accident, the self risk is doubled. When my son was learning to drive and after he passed his test, he was driving my SAAB 9-5 Aero and the premium remained the same, just the self rick went up

[Bender B Rodriquez]

In essence it is the same as an increased premium since you can always trade a higher premium for a lower deductible. It is just a marketing trick.

[axiom]

oh yeah the way they do it in the UK is a right racket, never understood why its done like that but to me it makes no sense whatesoever

[Rick Methven]

In essence it is the same as an increased premium since you can always trade a higher premium for a lower deductible. It is just a marketing trick.

Not the same. In the UK the premium goes up the moment a you driver is named on the policy does not matter if there is an accident or not. In Sweden you only pay if a youg driver is involved in an accident.

[Snood]

Of course I'm used to Sweden being more of a rip off in most things compared to the UK so I'm very refreshed to see this better way. However, are premiums much higher here than the UK as the car is insured for any old Tom, Dick and Harry?

[John.Smith]

The age of the driver does not affect the price of the insurance itself but normally if anybody under 25 is driving the car when it has an accident, the self risk is doubled. ... (show full quote)

The age of the driver does not affect the price of the insurance itself but normally if anybody under 25 is driving the car when it has an accident, the self risk is doubled. When my son was learning to drive and after he passed his test, he was driving my SAAB 9-5 Aero and the premium remained the same, just the self rick went up ... (hide full quote)

I was referring to the fact that some policies state that NO driver under 21 are allowed to drive your car. I got a discount of about 500kr + lower självrisk for adding this limitation on my policy.

It may not be applicable to all cars and I have a sneaking suspicion that they offer this only for cars over a certain engine size or power as I got it for my car but my wife did not have the same option on hers. (285bhp versus 180bhp)

[Rick Methven]

On the policy for both my cars 265bhp Aero and 160bhp C4 there is the option to state if anyone under 25 will drive the car. As my son is now 28 I changed the Aero policy to no driver under 25, the premium remained the same. I do not know if the premium would be higher if I had the under 25 driver option as it has been only over 25 since I bought it.