Cutting back on comprehensive insurance

[rydogz]

Hows it going guys looking at buying a VY SS soon but I am not keen on the paying $1800 for comprehensive insurance as I'm at uni and thats alot of money to me. A few people have suggested that I put the car in my dad's name and be a listed driver on his policy.

Doing this isn't new to me but this car will be financed in MY name which brings me to the main point: What can I do here?

I am assuming this cannot be done on a SECURED loan and want to know if it can be done by getting an UNSECURED loan in MY name, paying the stamp duty and rego transfer into DADS name and then insuring the car for comprehensive in DAD's name, with me as a listed driver.

Is this legal? The increased interest rate still works out cheaper than the yearly premium difference from online quotes I have looked at. I notice that the insurance company asks whether the car is financed I have got mixed answers from alot of people.

I understand there will be roughly an additional $400 excess for being under 25. For discussion purpose I am 22 with 1 accident 5 years ago

Any information is welcome, Cheers.

[Robbo5390]

Hey mate,
I have done this, i am 19 on green p plates with no accidents.......yet :P.
Fortunately i didnt have to get my car financed, however i think as long as the cars registered owner is the same as the person who takes out the policy then there is no issues, If you were the registered owner and your dad took out the policy and then you had an accident, well you can see that would look suss. I am only payin like 450$$ for full comp on a vt commmodore so save me heaps of dosh. If you want to make modifications to the car though make sure your dad is the one to call them, i tried to lower mine and called as a listed driver and they said i could only lower it an inch front and back, my step dad called and they said 3 inches back and 2/12 front. Same with mags, sound system, exaust, and cold air intake, they told me they couldnt insure more than 33% of the cars value on aftermarket accesories but they said it was fine to my step dad.

[alien]

I'd say bite the bullet, last comprehensive insurance i paid was around the $4k mark i think. For me it was chepaer to be in my name with no listed drivers than in my mum's name with me as a listed driver. But my collision was also only 2 years ago now!

[rydogz]

Thanks robbo good to see accident free (touches wood) I think it should be all sweet as long as its UNSECURED finance because SECURED finance usually requires full comprehensive in your name. Do you think it would make much difference with both names on the rego? I looked at a quote with AAMI and they didnt even ask for 2nd drivers just has a extra $400 age excess.

Alien in this case that would be 20% of the value, That doesn't bother you?! $4k a year is massive.(keep in mind I work about 25hours a wk and the rest is uni)

Let me give you a few a few quotes:
Dad:nrma=$1200 me listed AAMI=$869 extra excess not listed Budgetdirect= $458 (alot of people said there repairs are up the sh1t though.

Me:Nrma= $1700 AAMI=$2800 bingle=$3400 (haha who would pay that) justcar= $1800

Call me tight but I am not in the business of giving money away. I am losing $375/yr in interest with unsecured vs secured but the insurance premium makes up for it.

A larger excess seems to apply whichever way you do it so i'll just have to cop that, this car is going to be like a first son so I don't plan on doing anything stupid in it but as we all know shit happens. I am currently not insured for my bomb cause it's a waste of money but doing that with a $20k car is a different story lol.

Any opinions welcome guys, Cheers.

[alien]

Alien in this case that would be 20% of the value, That doesn't bother you?! $4k a year is massive.(keep in mind I work about 25hours a wk and the rest is uni)

It's a higher percentage for me... well what i paid for it. Otherwise your right, it is around 20%. But that's the cheapest i could get it. I am a full time uni student as well, but i get a little better off with 2 jobs.

In the end though Insurance Companies will try to weasel their way out of every claim. They dont like paying up. IMO insurance policies arn't worth the piece of paper they're written on. But you need them

My best advice for Insurance would be going through an insurance broker. They deal with everythign and will find you the best deal. Also in the event of a claim they have more power than an individual as companies generally take notice that they have a large client base and if they dont pay up it may cost them more in future when the broker doesn't put any insurance through them.

If i was you though i would just run through online estimates and work out exactly what is cheapest first! EDIT: I just saw you did run them. Firstly BudgetDirect i wouldn't touch. AAMI what percentage driving are you listed as [if they still do that]? Same as NRMA? Just remember, they will try weasel their way out of paying in the event of a claim!

[Slippy_Trippy]

Mine was $1900 for first year through Budgetdirect. They then refused to insure me after 2 claim (1 at fault and 1 not) so I went to Justcar and got $1600 per year.

My first car since it was my Mum's (94 Mazda 626) was just me listed as a driver under parents name but after looking through it with new car decided didn't want to risk insurance not covering me for being "shifty". This way I get my rating up (well technically not but...) also.

[coolvxss]

Im looking at doing the same thing. I got approved to borrow 15 000 for a vx ss, but cps wont give my the money untill i have insurance. But its way to much to insure under my name, so wanted to somehow insure it under dads name, but still have the car in my name. Does anyone know how to make this work?

[alien]

Slippy_Trippy, just be careful with JustCars Insurance. I've heard lots of bad things about them. And they do Underwrite vehicles (insurance issued by AAMI).

A mate just has his VL rear ended about 3 or 4 months ago, Justcars paid him out but no where near what the vehicle was worth!

[davway]

if you cant afford the $1800pa full comp, you really have no business buying the car IMO.
as for your secured and unsecured, i really dont know.
i do know though that no matter what finance you get YOU must have full comp in YOUR name.
you also cant go changing the rego out of your name either - they stake an interest at Vicroads (or your states version) and they will know.
If this breaches your contract, they can demand payment in full and or repossess the car.
as for your current car not being worthwhile enough to have insurance - what are you going to do if you have an at fault accident and get handed a $10000 bill?

[AirStrike]

If you can't afford the insurance then you can't afford the car, simple really.

[rydogz]

I can afford the insurance, but like I said what's the point in giving money away?

If it can legally be done cheaper than I'll do it weather I'm earning $10k a year or $100k a year.

If it has to be in my name either way like you said davway then perhaps I'll take the NRMA option for $1645 and be done with it. Was just interested in the legalities of it.

If you never insured anything you'd be in front, I have been taking the risk and just driving sensibly for the last few years but I am looking to uprgade now and have all bases covered.

Coolvncommodore good luck with the vx ss hunting I originally started there and decided to save the difference between the vx and vy. Don't get tempted lol.

Thanks for the information so far.

[rydogz]

I just looked at the age excess for the nrma and its $1600 wow. I spose that answers my own question then because a half price premium isn't half price with a $2200 excess lol.

[Secki]

Put your dad on your policy as the main driver, but the policy in your name. I did this with my gfs VX S Psk. Her insureance was like $X amount but with me on her policy as a driver it brought her policy down about $40 a month, who knows why?

She was 20 at the time and i was 25.

[anonymousmoose]

If you can't afford the insurance then you can't afford the car, simple really.

I gotta agree with that statement. BUT if you can make the insurance work for you, and find a way to get it discounted, then by all means give it a go.

I was blessed in the fact my parents let me drive their cars for 3 years before I had to buy my own... wow, that was 11 years ago now. I'm getting old.

[BecStar]

I've been thinking about insurance lately as I'll be registering my SS very soon. With my BMW I'm pretty sure I've just got the basic insurance, I actually don't take much notice of it I just pay when my rego is due lol. I think I'm just going to put the car and insurance in my fiance's name (26 with no crashes) with me as another driver (22 and no crashes).

If I was to put it all in my name would it make any difference if the car is an older model?

Only a matter of weeks now and she'll be back on the road! Weee

[rydogz]

The only difference an older model would make would be that its generally of lesser market value which adjusts your premium.

For anyone interested I spoke to the bank and they don't care If the car is insured for an UNSECURED loan, let alone who's name its in. I am a going to have a look around but I think its difficult to get under a $1000 excess with the above mentioned methods ie 2nd driver etc.
I will keep looking and post what I find for anyone interested.

As far as insuring myself NRMA seems to be the best option I've seen. Budget direct is quite cheap but alot of people have complained about the quality of repairs etc.

I will see what happens, could go either way. More focused on finding the car atm looking for black vy ss, leather, manual, under 100k kms preferred and haven't found much yet.

Cheers.

[coolvxss]

The only difference an older model would make would be that its generally of lesser market value which adjusts your premium.

For anyone interested I spoke to the bank and they don't care If the car is insured for an UNSECURED loan, let alone who's name its in. I am a going to have a look around but I think its difficult to get under a $1000 excess with the above mentioned methods ie 2nd driver etc.
I will keep looking and post what I find for anyone interested.

As far as insuring myself NRMA seems to be the best option I've seen. Budget direct is quite cheap but alot of people have complained about the quality of repairs etc.

I will see what happens, could go either way. More focused on finding the car atm looking for black vy ss, leather, manual, under 100k kms preferred and haven't found much yet.

Cheers.

Here is a black vy for sale. its in canberra,(not sure where your from) http://www.allclassifieds.com.au/ac/...vcid=122232918

I just got approved for a $15000 loan with community CPS, and they said i have to have insurance. Whats the difference between a secured and un secured loan? i guess my loan that i got approved for is secured because i have to have insurance?

How do i go about getting a unsecured loan? thanks

[rydogz]

Thanks for the link mate but that's a few too many kms.

Basically secured just means you can offer security for the loan to the bank which in this case is the car. Because they have an interest in the well being of that car incase you become in default(cannot make your repayments or breach the loan terms in anyway), they require it be fully insured for their "plan B" if you fail to make payments.

Having this security attracts a lower interest rate most the time. You can have a variable or fixed interest rate for secured or unsecured, it does not matter.

Just ask your chosen financial institution about different loan possibilities that are appropriate to your financial situation.

Good luck with it, post some pics when you get her.

Cheers.

[coolvxss]

Do you think they would give me an un secured loan since i dont have anything worth that much to give them as insurance? All my assets wouldnt even be worth a quarter of $15000 haha. It seems to be a hard task to find a good vx ss manual with low Ks. They all seem to have to many Ks for my liking.

[rydogz]

Giving them some thing as insurance makes the loan a secured loan, because you are offering security for them against the amount your borrowing. Asset value is not important when trying for an unsecured loan. They are mainly concerned with your ability to make repayments.

Keep in mind you will be paying more interest over the the loan term and the amount you are approved for may be less.

[rydogz]

Giving them some thing as insurance makes the loan a secured loan, because you are offering security for them against the amount your borrowing. Asset value is not important when trying for an unsecured loan. They are mainly concerned with your ability to make repayments.

Keep in mind you will be paying more interest over the the loan term and the amount you are approved for may be less.

[greenfoam]

If you think about it a bit, insurance companies have to make money so whatever you are paying for insurance, if put away in the bank should (average) easily cover you for any damage you are likely to cause to other peoples cars during your life. So if you think about it, it's all a bullshit scam like everything else

[Morton]

Unless you stack into a stobie pole on your first night out, in which case you'll be paying that one back for a very long time