We often hear that motor insurance premiums are too high, especially when the car is low value. But it’s not about the car but what you can do with it.

A neighbours’ 17-year-old son paid £700 to buy a nice little Peugeot 206. His insurance premium was about £2,000. He was not too happy about the insurance cost and having to behave due to the black box fitted.

On Christmas Eve he drove onto a roundabout, forcing a new-ish Range Rover to swerve onto the island, causing it to roll. It’s a write-off. The driver and passenger were both hospitalised. The claim reserve (the estimated final cost to the insurer) is £150,000, so £2,000 for a policy seems like a bargain.

Insurance is not an expense. It’s an investment in peace of mind.