Insurance Monthly Payment Charges

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Thu 17 Nov 2011 17:22
Insurance Monthly Payment Charges - fredthefifth

Hi All, one of my daughters is 22 and trying to insure her first car, a 10 year 1.1 Saxo. She passed her test in July and has since then been a named driver on her partners policy. In fact he's getting another car and she is having the Saxo from him so she been driving the car for a while.

Anyway, to cut to the chase, she is getting quotes of £800 to £1200 through the websites, GoCompare etc, but for reasons I can't recall she has to phone the insurance company direct to complete the deal. She is then being given prices that amount to 50% addition to pay monthly. Is this standard insurance company rip off for young drivers or is somebody making a mistake?

Any advice appreciate.

FTF

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Thu 17 Nov 2011 17:34
Insurance Monthly Payment Charges - Duncan112

I'm afraid it's pretty standard policy throughout the insurance industry, low headline quote on the web, nearly finish putting your details in then

"Oh dear, you need to phone us (on an 0845 number then we can make even more money) then we can say that you don't meet our criteria for the good offer on the web BUT we can offer you this..."

in the hope that you give in and pay the new higher price.

Happened to me both with car and house policys

Have you tried a high street broker - the independants are quite often better than the chains.

Possibly teaching you to suck eggs but is your daughters partner a named driver on her prospective policy, if he's been driving longer than her it may make a difference.

Edited by Duncan112 on 17/11/2011 at 17:34

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Thu 17 Nov 2011 17:42
Insurance Monthly Payment Charges - fredthefifth

Thanks for the reply Duncan, she's added me as a named driver and that has reduced the cost. I'll pass on what you say. Thanks again.

FTF

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Fri 18 Nov 2011 10:36
Insurance Monthly Payment Charges - daveyjp

50% more depends on the APR of the loan - what is she being quoted? She would be better getting a 0% credit card and paying with that.

When I used to pay monthly it was sometimes cheaper to go for a higher premium and a lower APR loan.

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Fri 18 Nov 2011 15:40
Insurance Monthly Payment Charges - TeeCee

It's the risk loading the ANPR.

Young drivers have historically had a nasty habit of refusing to pay the remaining charges once they've totalled the vehicle and want to cancel the policy. We all know how suprisingly high the charges to cancel a "pay monthly" policy early can be, now imagine what they're like when your annual premium is well into four figures.

Added to this is the fact that they also tend to be lacking in assets and not worth pursuing for the outstanding amount.

It's a polite financial way of saying foxtrot oscar, as are the massive premiums quoted for young drivers in the first place.

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