Insurance - 20 year old, E36 M3
Discussion
sday12 said:
H_Kan said:
I don't think that's fair. If insurance was more reasonable say £800-900
It's business, not fair? boo hoo!If 20 year olds want to buy fast car they have no abilitty to drive, why is it 'not fair' that the insurance is not 'reasonable'
My girlfriend just turned 21 and got insured on a 04 Audi TT 225bhp (Golf in a dress, I know, but she's always wanted one). Not an M3, granted, but insurance group 18 all the same and she could have had a Porsche Boxter for the same quote.
£700 FC with 3 years NCB and me (25) as the second driver from Elephant. Not a bad jump as she was paying £400 for a 1.4 Citroen C2!
That said - big jump between 18 and 19 IG and male or female might be worth a wedge itself.
When I was 20 I was still playing with hot hatches so pleanty of time to work up to an M3 (and you might be able to afford a better example by then, too).
£700 FC with 3 years NCB and me (25) as the second driver from Elephant. Not a bad jump as she was paying £400 for a 1.4 Citroen C2!
That said - big jump between 18 and 19 IG and male or female might be worth a wedge itself.
When I was 20 I was still playing with hot hatches so pleanty of time to work up to an M3 (and you might be able to afford a better example by then, too).
paddyhasneeds said:
Also bear in mind your "upgrade path".
At the risk of sounding old beyond my years (28!), this^^. I've been exceptionally lucky in my upgrade path as it were and have been fortunate enough to "achieve" more in car terms than most can in a whole driving career, and I am monumentally happy with what I have now. BUT, the disadvantage is that it is unlikely I will ever be able to upgrade in any significant way without serious money being thrown at it in terms of initial buying and then running costs. I don't know what you've driven before, but maybe consider "taking it easy"? There are so many cars out there that will give the same enjoyment as an M3 for much less cost, if not outright bhp etc. Me, as time passes, I feel myself erring towards older performance cars, as although not as fast, the driving involvement and "feel" of speed is much greater, yet costs can be lower. Some of the most enjoyable time I have ever spent in a car was in a friend's MG B Roadster - doing 30 mph felt like doing 60 in a regular car, the smell, the interaction, the joy gained from the experience, brilliant.Insurance grouping matters, but is not the absoulte indication of the insurance price
Take 2 cars, both cost the same to buy, both the same insurance group, but they can carry signifcantly different risk factors to an insurer
At 22 with 3yrs NCB I have a E46 330ci, group 18 which costs a little over £1k to insure, dispite the E36 M3 being just 1 group higher and worth nearly half it's an M, you pay a lot for that badge (by comparison the 330ci costs me less than a few of my friends in similar situations pay on hot hatches with similar or lower power)
I can only assume it is based on the 'typical' owner (i.e hot hatches are linked to younger drivers) aswell as value/grouping.
Take a look at a 328i Coupe, yes it's only got around 200bhp but they are great cars, 3k would get you late car in great condition, one that will hold it's value and cost significantly less to fix if something should break due to the lack of an M tax.
£4k would also get you a reasonable E46 328i coupe, not as aggressive but a much nicer place to be on longer journeys (but then considering you want an M3 I dont think that would really appeal)
In short, try and look for something a little different from what your average 19/20 year old drives, it will save you cash, but perhaps at the cost of the 'image' you are looking for.
Take 2 cars, both cost the same to buy, both the same insurance group, but they can carry signifcantly different risk factors to an insurer
At 22 with 3yrs NCB I have a E46 330ci, group 18 which costs a little over £1k to insure, dispite the E36 M3 being just 1 group higher and worth nearly half it's an M, you pay a lot for that badge (by comparison the 330ci costs me less than a few of my friends in similar situations pay on hot hatches with similar or lower power)
I can only assume it is based on the 'typical' owner (i.e hot hatches are linked to younger drivers) aswell as value/grouping.
Take a look at a 328i Coupe, yes it's only got around 200bhp but they are great cars, 3k would get you late car in great condition, one that will hold it's value and cost significantly less to fix if something should break due to the lack of an M tax.
£4k would also get you a reasonable E46 328i coupe, not as aggressive but a much nicer place to be on longer journeys (but then considering you want an M3 I dont think that would really appeal)
In short, try and look for something a little different from what your average 19/20 year old drives, it will save you cash, but perhaps at the cost of the 'image' you are looking for.
sday12 said:
H_Kan said:
I don't think that's fair. If insurance was more reasonable say £800-900
It's business, not fair? boo hoo!If 20 year olds want to buy fast car they have no abilitty to drive, why is it 'not fair' that the insurance is not 'reasonable'
In any case, the ethics of the insurance industry aside, if you actually read my post before wading in, you would see that my comment had nothing to do with insurance being fair, so please do wind your neck in.
H_Kan said:
sday12 said:
H_Kan said:
...In my opinion insurance is over priced. If the insurance companies spent more time weeding out false claims, scammers and ridiculous repairs which are milking it then I think they could probably charge much lower premiums. The premiums for new drivers are so ridiculous even on mundane stuff that I'm really not surprised so many risk no insurance- that situation isn't good for anybody...
Young driver insurance is very expensive. However, it is not usually over priced. Most insurance companies make an underwriting loss on their private car insurance book. Profit for the companies comes from the investment return on premiums. Since those investment returns are so low at the moment, there have been some swingeing premium increases. The increases have been applied to try and recover premium income on those parts of the market that have made the biggest losses, ie young drivers, poor post codes, bad occupations etc.
More conservative insurers just decline those type of risks. All insurance companies are getting smarter at spotting fraud and employ more and more sophisticated methods.
MiniMadMike said:
Hi all,
Am currently after a new car, got 4k to play with and have found i can get an E36 M3 for that, which would be exactly the sort of thing i am after. However, after an initial play on gocompare.com I cant get the insurance cost below 3k! Can anyone suggest any ways of getting that price down? Maybe any good companies that might insure me cheaper? I live in a good area, no claims or convictions, car will be garaged etc. One thing ive been thinking - im 19 at the moment, turning 20 in a couple of weeks. If i wait to get insurance when im 20, do you think it would be much cheaper?
Thanks.
Mike.
An e36 M3 is very desirable, and very good value. However, as has been pointed out, the insurance will be crippling, and if something goes wrong, can be disproportionately expensive compared to similar models. Am currently after a new car, got 4k to play with and have found i can get an E36 M3 for that, which would be exactly the sort of thing i am after. However, after an initial play on gocompare.com I cant get the insurance cost below 3k! Can anyone suggest any ways of getting that price down? Maybe any good companies that might insure me cheaper? I live in a good area, no claims or convictions, car will be garaged etc. One thing ive been thinking - im 19 at the moment, turning 20 in a couple of weeks. If i wait to get insurance when im 20, do you think it would be much cheaper?
Thanks.
Mike.
If I were you, I'd look at what I was actually after in a car.
If it's a fast, fun, RWD car, then there are a lot of alternatives that would have much lower insurance.
Off the top of my head -
e36 328i
e36 323i - Highly recommended as I had one and absolutely loved it.
Z3 328i
Merc SLK 200 or 230K
Mazda MX5
Toyota MR2
Nissan 200sx
e36 320i - still pretty good performance, insurance more reasonable.
Merc C230K
Is 4K your ceiling budget?
If so, you'd probably need to look at approx 2K for the car, 2K for insurance.
A lad that works for me just bought a MGZS 120 for £1600, and his insurance is 2K at 22 years old after much shopping around.
Sorry to disappoint, but insurance is horrific until after about 25.
The only other route I could maybe suggest would be classic insurance for an e36? Might be an age embargo though.
Meoricin said:
Dr Jekyll said:
ic0n said:
Accountant/ Farmer type jobs help
jbi said:
H_Kan said:
If 20 year olds want to buy fast car they have no abilitty to drive, why is it 'not fair' that the insurance is not 'reasonable'
How do you know he does not have the ability to drive it?Not everyone drove as badly as you when they were 20
NCB indicates ability (or luck).
billyliar said:
How do you go about finding if your job is classed as high risk to insurers?
put it into an online quote, then change the job to other things and see what the difference 
That's what I do at least, as I can technically have several job titles all of which are legit, so i cycle through them to fine the cheapest, normally varies by about 20 quid or sowill insurance companies actually insure 20 year olds on an m3? i struggle at 21 to get insurance for a saab 900 2.0 non turbo....i eventually got it for 1050, i was getting quotes of up to 4k. before i swapped my car last month i was down to 400.
now at 24 ive got a 9-5 aero HOT and with 3 years ncb only payin 700 quid.
i really think you should just get a lil hatch or something until yoru a bit older then get yourself an m3 because your just gonna cripple yourself if your gonna pay 3k in insurance for a 4k car.
now at 24 ive got a 9-5 aero HOT and with 3 years ncb only payin 700 quid.
i really think you should just get a lil hatch or something until yoru a bit older then get yourself an m3 because your just gonna cripple yourself if your gonna pay 3k in insurance for a 4k car.
This sounds bonkers to me. High excess is all well and good at the time, but at the age of 20 with a 300bhp RWD car don't you think thats an enormous risk to take? If you get it a bit wrong in that it may go very wrong and put your premiums up for life. I'm 21 by the way, I'm not trying to patronise you.
If I were you I'd get a 323 or even just an E30 320 as a starter BMW.
If I were you I'd get a 323 or even just an E30 320 as a starter BMW.
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