Young driver insurance ripoffs - Page 2

Yellow_Festiva · 09-07-2012, 11:57 AM

That is just part of life. Shopping around will save you a bit, as will a little 'creative' ownership / garaging....

I still remember paying $1600 12 years ago for full comp on the Festiva with $1000 excess. Back then, I was working / paying my way through Uni and it was 4 weeks wages...

Of course it hurt, but thats just what had to be done. Once the value dropped, I only did 3rd party fire / theft. Then went down to just plain old 3rd party.. I think the lowest I paid was $260 for a year, about 4 years ago now.

When I bought a car, I first found out what insurance would be.. Seems those XR letters are causing a lot of issues. I know it's crap, and unfair, but thats just the way it is.

Good luck!

J.C. · 09-07-2012, 12:21 PM

I haven't read this thread fully but get the idea.

My 22yr old nephew looked into the purchase of a T3 TE50 recently. His intentions were sound. A car to drive on Sundays and take the girlfriend out in when I come home from work, which was once or twice a month at present.
After laying down a deposit to secure the vehicle, he proceeded to look into insurance and rego costs, etc.
Phoning around insurance companies and getting quotes forwarded to him revealed a dark side which I was not fully aware of.
The cost of insuring a vehicle of such nature for a 22yr old who lives in the district he does (northern NSW), was going to cost him anywhere from $2500-$9500 per year.
Needless to say, he backed out of the sale much to the disappointment of the seller who retained half of the 2 grand deposit, which legally after the cooling off period, he is apparently entilted to.
He is gutted.

Still, you live and learn.

Insurance companies excuses for such high premuims? It is the location, age and the number of claims within the area.............apparently.

xisled · 09-07-2012, 01:11 PM

The reason why cost are so high is because you are paying a small price for piece of mind.

People complain about insurance price, until they use it.

Just think if you did not have insurance, and you destroy your car. The $1000 a year premium gets most of your money back on the car you own.

|Nate · 09-07-2012, 01:19 PM

It's just one of those guaranteed parts of life, if you're young and have a new/nice car, you'll pay for it. But it's worth the peace of mind.

I currently pay $1300 a year for my 06' BMW 130i, insured for $30,000 with a $1000 excess. With RACV

Not too bad considering I'm 19.

JohnK2201 · 09-07-2012, 01:24 PM

I was going to say. there had to be something wrong with that original quote you receieved.

I've got a 2011 XR6 Limited Edition Sedan, which I got when I was 18 (got it 8 months ago, and only 19 now).
The car is insured for $36000 I think, on full comprehensive with a $600 excess and windscreen and hire car. This is with NRMA
I pay $183 a month (or if I wanted to pay a year upfront it would be like $2100)
This is with no accident history, so what you were quoted seemed way off. I'm fine with paying this much for insurance because I've got a nice car to drive

Feathers · 09-07-2012, 01:37 PM

My insurance when I first bought my XR6 was around $2700 (I was 22, no claims, but live in a not so great area).
I just had to put up with it. It didn't come down by much over the next few years while I was still with a company that specialised in young people with cars no one else would cover.

Then they got bought out, and sent out a letter saying that they would no longer cover anyone under 30, regardless of the car you had, or how long you'd been with them.

Now my car has been added to our company fleet list, and it's about $600 a year for full comprehensive. The guy that handles our cover has been out to the depot, seen it for himself, and knows that I drive the rest of our fleet, so he was more than happy to cover my car.

K93George · 09-07-2012, 04:23 PM

I am 18 drive a 2012 FG XR6 MK2 and pay 1300 a year full comp, through my mothers name and myself as a secondary driver, otherwise would have been 3,000 through AAMI, and I had written off a car before =O The story goes I got t-boned in my 010 XR6, got an 012 replacement and the insurance got transfered across, so I pay the same amount for a car worth a lot more! =D Not looking forward to next year though :S

Cheese3 · 10-07-2012, 12:42 AM

I bought my T3 TE50 as a 21st birthday gift, i insure it in my name and at 21 i think i was paying $1700 and was agreed at 32k. Now (24) my TE insurance is 800 and i just picked up a T1 TL and insurance $600. both agreed value and full comp.

I bump my excess to $2000 because if i damage either of these car i cant get parts so ill repair it myself or part them out. Ill only use insurance if i hit someone else

Kevaclone · 10-07-2012, 08:03 PM

Quote:

Originally Posted by Matt5933

Hi all, I am the very proud owner of a 06 BF Xr6 6sp auto. Never really had much to do with ford products at all but when my old car died I compared the VZ commodore and Bf falcon. The Bf falcon was so far ahead in terms of refinement and build quality / on road quality I was amazed. It truly is a great product and fantastic drive (other than a few low speed thuds which I'm pretty sure is diff bushes but anyway). However i have had difficulty finding reasonable insurance for me. The cheapest i have been able to find for third party fire and theft is $850 with a $1000 excess a year. I have even had a full comprehensive quote of $9850 a year. Not even joking. $850 is ridiculous for third party insurance.

I am a 21 year old male on an open licence. I have never had any type of fine or loss of demerit points. No accidents / insurance claims or run ins with police. Completed a defensive driving course, never so much as scratch any of my cars. I work a job that requires 3 different police background checks. The response to this is always young men wreck cars $850 is cheap. Most say they wont even consider me until I am 30. My father has a brand new FG XR6 and only pays $350 a year full comprehensive. My car is parked off street on a drive way in suburb in the cheapest insurance bracket.

Does anyone have any advice for me? or can recommend a good company that wont rip me off considering I have a completely clean claim history and licence.

Other than this annoyance I love my falcon and always walk away from it backwards so I can stare at it a bit longer. Awesome shock wave blue with factory 18inch rims. Nothing better than the period when you first get a great car and use any excuse just to go look at it.

Something doesn't add up here
you can't get full comp for under $9800?? and you are 21 have an open?
I'm thinking that you may have a history you haven't mentioned here

my Son did a quote for his car, A Mazda Astina SP, full comp was $2000 and 3rd Party, fire, theft is $270, He's 17 and just about to get Ps

The XR6 is just a sporty family car, has the same engine and running gear as the pov pack XT, some sporty add ons and brakes/suspension. Hardly warrant such a high insurance premium

Ansith · 10-07-2012, 08:45 PM

I was quoted $2000 for full comp for my '95 Camry with RACQ, 20 and on Red Ps. The good news was I paid $2100 for the car and really wasn't worried with not getting full comp. Ended up going with Fire and theft for $250.

I know being under 25 and on my Ps puts me into a pretty bad group when looking for insurance but almost paying the value of the car a year for the insurance is pretty crazy.

|Nate · 10-07-2012, 10:51 PM

When I was shopping around insurance companies for the Beemer, one random company came up with an offer of $12000 a year, yes $12000 to insure it. I thought it was quite funny

LTDHO · 11-07-2012, 08:03 AM

Quote:

Originally Posted by Matt5933

Does anyone have any advice for me? or can recommend a good company that wont rip me off considering I have a completely clean claim history and licence.

Do what 21 year olds used to do, buy an old car, something cheap. Tinker with it and learn your way around it. Or pay the premium the insurers quote you. Or as suggested insurer it in parents name, just make sure you are listed driver on their policy.

xisled · 11-07-2012, 03:33 PM

Quote:

Originally Posted by LTDHO

Do what 21 year olds used to do, buy an old car, something cheap. Tinker with it and learn your way around it. Or pay the premium the insurers quote you. Or as suggested insurer it in parents name, just make sure you are listed driver on their policy.

The cost for these old car to be insured is around the same cost for a new car to be insured.

kaniSS · 11-07-2012, 03:37 PM

I just increased my excess to 2k and dropped my annual insurance payment to $750 per year from $1200. I'm 31.

Maybe try doing this if you guys want cheaper insurance, but don't crash..

xisled · 11-07-2012, 03:40 PM

Quote:

Originally Posted by kaniSS

I just increased my excess to 2k and dropped my annual insurance payment to $750 per year from $1200. I'm 31.

Maybe try doing this if you guys want cheaper insurance, but don't crash..

It is not always about you having a crash. What happens if your car is parked in a shopping center car park and another side swipes your car and drives off.

You are up for the 2k excess. I used to see people do this wen I first started at AAMI. IMO it is a bad idea.

Yellow_Festiva · 11-07-2012, 04:08 PM

Quote:

Originally Posted by xisled

The cost for these old car to be insured is around the same cost for a new car to be insured.

I think he was referring to something that does need full insurance. Old doesn't have to be vintage either.

A few years ago a friend from overseas with limited funds bought a 98 Festiva for $1200 and bought 3rd party insurance for around $270 a year... didn't need anything flash, and was pleased to be able to get around on his own.

Sure, 3rd party is probably more when you are younger, but not the same as full comp.

Just did a quote - 3rd party on a 98 Festiva, 23year old with no history, below average suburb of Sydney, male. $434pa or $42 a month with basic excess. Add fire and theft for $125. Full comp - $1774 on 2.2k agreed value lol...

98 Starlet: $446pa or $43 a month 3rd party. $1763 full comp on 2.5k value.

98 Falcon auto sedan: $441pa or $42 a month 3rd party. $1805 full comp on 2.8k value.

Looks like basic 3rd party is 1/4 the full comp price. There are cheap options for young drivers. Want to drive something nice, be prepared to pay extra.

XAO71 · 11-07-2012, 05:08 PM

My eldest bought an 2007 xr6 and we asked the dealer for 2 sets of papers, one with is name only and the other with his mother name add for insurrence. With adding his mother name dropped the full insurrance from $2400 ppa to $854 ppa.

Only way these young ones can afford insurrance

xisled · 12-07-2012, 10:02 AM

Quote:

Originally Posted by XAO71

My eldest bought an 2007 xr6 and we asked the dealer for 2 sets of papers, one with is name only and the other with his mother name add for insurrence. With adding his mother name dropped the full insurrance from $2400 ppa to $854 ppa.

Only way these young ones can afford insurrance

You want to know the funny thing is. When the insurance company investigate the claim if there is ever a claim. They will get the Private Investigator to knock on your neighbors door and ask who is the regular driver and if your neighbors say your son is and you have not been honest with the insurance company. They have grounds to void the claim.

I love people who think they can get away with insurance fraud. They always get caught out.