Car insurance situation

[boastnmyweakness]

Hi all, I’m looking at buying a 2015 Opel Adam 1.0T from my friend for R80 000, the insurers are valuing it at around R150 000. I’m 24M and getting quotes of around R950 per month with an excess of R6500+-.

At almost R1000 a month on insurance after 6 years i would’ve almost re bought the car again… any suggestions or thoughts? Is it responsible to just pay R250 a month for third party?

 

[resjudicata]

@boastnmyweakness Do not under any circumstances drive without full comprehensive insurance unless you can afford to lose R80k if something were to happen.

 

[123456christian]

@boastnmyweakness Different insurers will give you vastly different quotes. Try naked (I think they do automobile insurance?) or auto and general (mines with them via the AA). Premiums and excess are also often negotiatable.

 

[mattlwood]

@boastnmyweakness Speak to a broker. I bought a new car and my broker shopped around and found me a great deal. I'm paying r532 or so for a car valued at r210k

 

[boastnmyweakness]

@mattlwood And what’s your age?

 

[mattlwood]

@boastnmyweakness Over 25 but seriously ask a broker. Everyone recommends naked but they were more expensive

 

[foolish3]

@mattlwood Was the deal that your broker found, similar in benefits to the deal you had before?

I mean, third party liability, excess, car hire and all... Was it really matching?

 

[mattlwood]

@foolish3 Yes. No excess. I'm not worried about car hire

 

[foolish3]

@mattlwood Okay... guess I'm getting a broker then

 

[asp510]

@boastnmyweakness If you get into an accident/stolen and the car is written off, are you able to replace like-for-like with the R50k you "saved" over 6 years by opting for 3rd party only?

 

[boastnmyweakness]

@asp510 It’s just tough because R1000 per month is very steep, I know having the car written off is much worse but yeah

R250 for third party fire and theft seems like a more reasonable offer?

 

[asp510]

@boastnmyweakness If you can't afford the insurance, can you afford to be driving the car? Insurance should be a no-brainer. Nobody has R150k for another car just lying around.

 

[boastnmyweakness]

@asp510 I do have the money for the insurance but it’s just annoying to hear because of my age I’m getting charged R1000 a month as opposed to somebody older getting charged R450-550

 

[asp510]

@boastnmyweakness It's still cheaper than writing off the money. Not everyone who's older automatically gets such good insurance rates either.

Insurance depends on your risk profile, which includes basically everything they ask you - but the biggest factors are age, gender, overnight parking location, day time parking location and whether the vehicle is considered sporty, replacement value and overall repair costs.

So the highest premium is generally for young males driving turbo engined cars, parking them in the street all the time.

 

[boastnmyweakness]

@asp510 You’re right

 

[mnewby36]

@boastnmyweakness We are in south africa, the chance of your car getting stolen/rammed/crash with a drunk driver/accident due to road conditions ect are almost garunteed, better safe than sorry.

Try kingprice- they will lower your insurance as the balue drops

 

[peterdom]

@boastnmyweakness Unfortunately, insurers charge much higher premiums at your age. Best thing to do is get a broker and ask them for multiple quotes. After that, review it each year and ask for lower premiums.

Just remember that insurers often give a much lower premium, but with a much higher excess, so look out for that.

One last thing: Stay away from Outsurance.

 

[boastnmyweakness]

@peterdom I’ve heard outsurance is dodgy

 

[jasman]

@boastnmyweakness Once you turn 25 the premium might come down. At least you could ask them to renegotiate the premium. An excess of R6500 is also pretty steep, did you ask for an additional voluntary excess to try bring the premium down? Bearing in mind that if you have a claim while you are under 25, an additional age excess might apply in addition to your basic excess and voluntary excess, if you have one.

 

[abrett44]

@boastnmyweakness Don't be bullied. Insure it for the value that you want. And don't forget to adjust your yearly value for depreciation and the insurance premium accordingly.