Pass Plus - Thing of the past?

Learners completing the Pass Plus training scheme as a shortcut to cheaper car insurance could be making an expensive mistake.

New research from uSwitch.com, the price comparison and switching service, reveals that last year 13% (180,676) of new drivers spent £171 each on Pass Plus qualifications, over £30.8 million in total. However, insurance providers only acknowledge this for 12 months after the course is completed and only 15 providers offer a discount on the cost of the policy which is on average 12%.

Not only are these discounts few and far between - providers that do honour a reduction in premium costs are not offering the most competitive deals. For example, an 18 year old male living in London driving a Vauxhall Corsa will be offered a 23% (£884) reduction on a premium of £4,800 from the AA if he has completed the Pass Plus. However, the reduced price of the premium is still £1,545 more expensive than the best buy equivalent policy with Direct Line - offering him a 25% discount. What's more, the research reveals that the same policy with Norwich Union costs a staggering £5,300 with the reduction, this is 89% higher than the same policy with Kwik Fit offering no discount at all.

The Driving Standards Agency's (DSA) Pass Plus qualification not only exists to boost drivers' awareness of hazards - making them safer motorists - it is also advertised as a way of reducing car insurance premiums. The course is aimed at new drivers in their first year of driving to build on their existing knowledge, giving them experience of driving in towns, all weathers, on rural roads, at night, on dual carriageways and motorways.

Ashton Berkhauer, insurance expert at uSwitch.com comments: "Most people seem to think that if you take the Pass Plus course, you will get a discount on your car insurance -however this is not always the case. In some cases the saving is still less than the cost of £171 to sit the Pass Plus. What's more, our research shows that the 15 insurers that do offer a discount are not always the cheapest available.

"The Pass Plus scheme is great a great concept but to date hasn't delivered what it is suppose to. More of a financial incentive needs to be offered to drivers who take part in the scheme by encouraging every insurance provider to offer discounts on premiums. With the Transport Secretary's recent announcement to reduce young fatalities on the road by introducing more in-depth driving tests, it will be interesting to see where Pass Plus fits into these plans."

Cost of learning is the tip of the iceberg

Research from uSwitch.com also reveals that, in total, drivers spend £1,337 on learning to drive alone - taking the Pass Plus test will push this up to £1,508. What's more, there has been a 12% hike in the costs of practical and theory driving tests in the last month. Once these tests are passed, the cost of running a car adds further strain. Consumers fork out £1,065 on average on fuel and tax and pay £629 annually on their car insurance premiums.

Berkhauer concludes: "Drivers who have taken their Pass Plus certificate should not simply sign up to an insurer advertising a reduced premium to certificate holders. Kwik Fit insurance for example, does not offer a Pass Plus discount, but is still one of the cheapest providers on the market for young drivers. Our advice is to shop around to find the best insurance deal for you and don't be dazzled by the discounts."