Car insurance - extortionate pay monthly rates?

[I'm Rick james]

Hi all,
Just a quick question. I'm in the process of sorting out insurance quotes for my new car and the yearly premium is £2355.00 as a one off lump sum payment, but to pay monthly it jumps from said amount to a yearly total of £4964.00! Dividing the one off payment sum by 12 brings it out £196 per month so I would expect a slight premium on top of that to pay in installments but not by a couple of hundred quid! £413 to pay each month on installments.

I just don't see how that can be right? Or is just the insurer i'm using?
Any words of wisdom greatly appreciated I am only 19 aswell if that contributes to hike in price?
Reagrds
Rj

[Ki3r]

Its because its a loan, so they charge you interest. Maybe see if you can get a credit card with 0% interest, pay it all off at once, and pay back the total/12 each month (or sooner if you can). What I am going to do this year (although with mums credit card)

[SomeMinorTrouble]

They know most young'uns cant pay the full sum upfront, so they charge an unholy amount of interest monthly to screw even more money out of us.

[I'm Rick james]

Yeah I suppose, I just had hoped the interest wouldn't be quite as horrendous. I could afford to buy it outright I'd just rather not have such a bug lump sum come out at once but it seems short of spending double that might have to be the way.
Cheers
Rj

[SomeMinorTrouble]

It does look painful to have your account depleted but you'll be much better off in the long run

[Stuck In A Lift]

Odd. I work in insurance, we charge 14% interest on the premium. Which isn't too bad.

[anonymous-user]

I used to work for one of the biggest companies involved in the collecting of insurance DD's, you wanna know the best bit?

Say if they charge you 10% to pay by DD the insurance then the insurance company will be getting a 3% kickback off that

Nice eh?

Pay it in full if you can

[CraigMST]

Get a 0% credit card and put it on that and pay it off monthly.

[anonymous-user]

Stuck In A Lift said:

Odd. I work in insurance, we charge 14% interest on the premium. Which isn't too bad.

I must admit I never saw one that high when I was with the company either

[super tech]

ive always payed monthly but the rates seem to get more extortionate each month so i banged it on the credit card and im now paying it off over like 9/10 months - works out loads better for me.

[btdk5]

SomeMinorTrouble said:

They know most young'uns cant pay the full sum upfront, so they charge an unholy amount of interest monthly to screw even more money out of us.

Its nothing to do with age. They all charge a flat rate.

[SomeMinorTrouble]

btdk5 said:

Its nothing to do with age. They all charge a flat rate.

I know that, but most older people have the money to pay outright while students living off monthly wages/pittance money usually have to pay monthly..

[Nigel Worc's]

I'm Rick james said:

Hi all,
Just a quick question. I'm in the process of sorting out insurance quotes for my new car and the yearly premium is £2355.00 as a one off lump sum payment, but to pay monthly it jumps from said amount to a yearly total of £4964.00! Dividing the one off payment sum by 12 brings it out £196 per month so I would expect a slight premium on top of that to pay in installments but not by a couple of hundred quid! £413 to pay each month on installments.

I just don't see how that can be right? Or is just the insurer i'm using?
Any words of wisdom greatly appreciated I am only 19 aswell if that contributes to hike in price?
Reagrds
Rj

Please take this the right way.


If you need credit to buy a car, you can't afford that car.
If you need credit to insure it, you can't afford to drive that car.

I'm afraid people like yourself encourage insurance companies to charge these stupid rates, by finding ways of paying them.

[thecremeegg]

Bit harsh? Not many 19 year old can afford 2k a year for insurance.

On a side note, I paid my insurance monthly as I was unemployed briefly at the time. Yearly premium was 280 and to pay monthly was 300, so 20 quid which was pretty good

[JackTheLaddddd]

CraigMST said:

Get a 0% credit card and put it on that and pay it off monthly.

Wouldn't it be quite hard/impossible to get one at 19?

[Pannywagon]

Nigel Worc's said:

I'm Rick james said:

Hi all,
Just a quick question. I'm in the process of sorting out insurance quotes for my new car and the yearly premium is £2355.00 as a one off lump sum payment, but to pay monthly it jumps from said amount to a yearly total of £4964.00! Dividing the one off payment sum by 12 brings it out £196 per month so I would expect a slight premium on top of that to pay in installments but not by a couple of hundred quid! £413 to pay each month on installments.

I just don't see how that can be right? Or is just the insurer i'm using?
Any words of wisdom greatly appreciated I am only 19 aswell if that contributes to hike in price?
Reagrds
Rj

Please take this the right way.


If you need credit to buy a car, you can't afford that car.
If you need credit to insure it, you can't afford to drive that car.

I'm afraid people like yourself encourage insurance companies to charge these stupid rates, by finding ways of paying them.

Please don't take this the wrong way but I guess you're slightly older, possibly even a baby boomer?

It is the baby boomer generation who have had everything on a plate (relatively) and have made a killing on house price rises, have a nice fat pension and had the best of the NHS etc. There is an argument that the greed of the baby boomers is what has left us youngin's with a bleak future to look forward to.

Not everyone is lucky enough to have our parent's silver spoon shoved up our arses and have had to pay our own way from a young age and on a low salary. Add to that the need to be able to drive to get a half way decent job, and it's no wonder that, with the cost of everything car related, people have to take credit in order to be able to afford to better themselves.

Get off your high horse, you condescending old git, please!

[PanzerCommander]

Nigel Worc's said:

Please take this the right way.


If you need credit to buy a car, you can't afford that car.
If you need credit to insure it, you can't afford to drive that car.

I'm afraid people like yourself encourage insurance companies to charge these stupid rates, by finding ways of paying them.

Yes because every single young driver on the road can afford the massive premiums they are being charged in one go.

[Nigel Worc's]

thecremeegg said:

Bit harsh? Not many 19 year old can afford 2k a year for insurance.

On a side note, I paid my insurance monthly as I was unemployed briefly at the time. Yearly premium was 280 and to pay monthly was 300, so 20 quid which was pretty good

I haven't allowed my own "children", whilst I still have some control of them, to but car(s) on credit, or pay insurance monthly.

If more parents did this, insurance costs wouldn't be so high ...... in my opinion.

My own youngest will be 17 next Feb, and although I'll encourage him to learn to drive as soon as he can, both he and I are well aware he's going to be on two wheels for two or three years, as the insurance for that is affordable, car insurance just isn't.

[I'm Rick james]

Nigel Worc's said:

Please take this the right way.


If you need credit to buy a car, you can't afford that car.
If you need credit to insure it, you can't afford to drive that car.

I'm afraid people like yourself encourage insurance companies to charge these stupid rates, by finding ways of paying them.

I've taken it the right way, but I have one thing to add, I presume you paid for your house/flat outright? I also presume you pay for all of your purchases outright. As If you havn't got £xxx amount of pounds for that house then you can't afford it?
Regards
Rj

[PanzerCommander]

I'm Rick james said:

I've taken it the right way, but I have one thing to add, I presume you paid for your house/flat outright? I also presume you pay for all of your purchases outright. As If you havn't got £xxx amount of pounds for that house then you can't afford it?
Regards
Rj