Insurance rant....

[mercGLowner]

My 18 year old daughter is renewing her insurance on her new Fiesta that I bought her last year when she passed her test. She now has one years NCB and the renewal quote from her current insurer was a little over £1500 through Quinn direct.

We did a comparison quote on confused.com and gocompare.com and the cheapest came out at £1060 (Admiral)- not bad we thought. Having bought her the car I am keen that she pays her own insurance and running costs, so she learns that such things are not cheap! She does have a part time job around her studying at Sixth Form. Anyway, I rang Admiral to confirm the quote and asked for the cost of paying monthly - the only way my daughter can afford it. I was staggered, horrified and totally pi%%ed off to be told that paying monthly would cost over £1600 - an 8.5% APR service charge (understandable) and she would have to forego a 'bonus' for paying monthly over annually - this amounted to a £500 charge! The same criteria applied to a quote from Diamond and Elephant (same group).

It is bad enough that youngsters are stung for their insurance but when the thieving arseh**s fleece them rotten for paying monthly it frankly is scandalous. I am fuming, no wonder some kids don't even bother buying insurance.

End result, Insurance for £1060 is on my credit card and my daughter is paying me back monthly.

[XG332]

Mine went down to £800 on my own details, fully comp after one year at 18.
Did you ring around aswell as internet prices?

[wackojacko]

Insurance prices are cataclysmic ! mine would have been 6K Third part Fire and THeft for my current car we have an Admiral Multi-car policy with 3 group 20 cars on it so my sub policy came to £1600 fully comp with a credited 1 years NCB which is very reasonable for the car I have as a 17 year old, so if your interested i'd rec an Admiral Multi car policy

[R1 Loon]

So this isn't an "insurance" rant, it's a "charge for credit" rant then.

Just clarifying, carry on.

[R26Andy]

Credit card with 0% interest on purchases for 12 months will work just the same provided she is sensible and doesnt use it for copious amounts of alcohol and takeaways

[saaby93]

Get a loan from the bank

[sjj84]

R26Andy said:

Credit card with 0% interest on purchases for 12 months will work just the same provided she is sensible and doesnt use it for copious amounts of alcohol and takeaways

I've done this a couple of times. Use the card to pay the insurance or in my case big purchases and spread the cost over the year. Never used the cards again.

[Deva Link]

XG332 said:

Mine went down to £800 on my own details, fully comp after one year at 18.

How long ago was that? Seems remarkably cheap for an 18yr old lad.

Edited by Deva Link on Sunday 23 January 20:39

[Complex]

It could also be argued that the type of person looking to pay on a monthly basis is a greater risk according to statistics.

[balders118]

I had this exact issue when I started with Elephant last year. Worked out at something like a 40% increase to pay montly! But they were considerbly cheaper than anyone else for the yearly premium. Ended up borrowing money I had saved for my MSc, with the intent of paying it back monthly. Didn't really work out like that but hey-ho.

[Deva Link]

balders118 said:

Didn't really work out like that but hey-ho.

I guess they've been bitten too, hence the cost.

[jeff666]

Welcome to England.

[XG332]

Deva Link said:

XG332 said:

Mine went down to £800 on my own details, fully comp after one year at 18.

How long ago was that? Seems remarkably cheap for an 18yr old lad.

Edited by Deva Link on Sunday 23 January 20:39

November last year.

[Tuscanless Ali]

wackojacko said:

so if your interested i'd rec an Admiral Multi car policy

So would I.

Son was quoted in the region of 3k on his own, added to my multicar and the price dropped down to 1200.

[Deva Link]

XG332 said:

Deva Link said:

XG332 said:

Mine went down to £800 on my own details, fully comp after one year at 18.

How long ago was that? Seems remarkably cheap for an 18yr old lad.

Edited by Deva Link on Sunday 23 January 20:39

November last year.

So what's unusual about it - we often see threads from people with the usual superminis complaining about getting quotes in the £3-4K region?

[wackojacko]

Tuscanless Ali said:

wackojacko said:

so if your interested i'd rec an Admiral Multi car policy

So would I.

Son was quoted in the region of 3k on his own, added to my multicar and the price dropped down to 1200.

..... do I know you from somewhere

Multi car is certainly th way forward for young drivers with normal and fast first cars

[XG332]

Deva Link said:

XG332 said:

Deva Link said:

XG332 said:

Mine went down to £800 on my own details, fully comp after one year at 18.

How long ago was that? Seems remarkably cheap for an 18yr old lad.

Edited by Deva Link on Sunday 23 January 20:39

November last year.

So what's unusual about it - we often see threads from people with the usual superminis complaining about getting quotes in the £3-4K region?

No idea, details are all real and honest. Quotes ranged from £800 - £1300. It was £1200 when i first passed.

[mercGLowner]

R1 Loon said:

So this isn't an "insurance" rant, it's a "charge for credit" rant then.

Just clarifying, carry on.

Err, no. It is not a (reasonable) charge for credit rant, it is an unnecessary insurance 'loading' and profiteering rant. This is an 18 year old being fleeced by an extra £500 by an insurance company for no good reason, an acceptable charge for credit is fine but this is an additional penalty.

Complex said:

It could also be argued that the type of person looking to pay on a monthly basis is a greater risk according to statistics.

What planet are you on? There is absolutely no greater insurance risk by paying monthly - that is an absurd argument! Many people pay electricity/gas/mortgage/home insurance/Council Tax monthly, I am pretty sure that by doing so you are representing a greater risk - but I could be wrong!

[GKP]

Bank of Dad. 12 equal monthly repayments at 0%

[Deva Link]

mercGLowner said:

What planet are you on? There is absolutely no greater insurance risk by paying monthly - that is an absurd argument!

I would be prepared to bet money that people who pay for their insurance monthly are statistically a greater riak.

And we've already had someone post in the thread to say he borrowed the money but never got around to paying it back.

I would think another very significant issue is that a lot of youngsters write off their cars - they then think they can stop paying the insurance and are gobsmacked to find they owe the full oustanding balance. They seem to honestly think they're buying monthy insurance. I imagine recovering the money from this type of person is not an easy task.