Little advise please :)

wiseman405

Hi there,
I have savings of just over 11K.
My renewal for my car insurance has come through, came through at over £1400 for 9months! i'm a youngster. So i phoned them and they came down to just over £1300 (+£80 interest), now do i pay it off lump meaning i can save the same amount i am doing now. Or do i pay it off monthly at a wopping £160 a month. I only earn minimum wage about £730 a month, it would basically mean i would have to save £160 less a month but i wouldn't be digging in.

What do we think? Keep the savings or dip in.

Thanks
Tom

KTF

Have you shopped around to find out if any other companies can offer it for less as it is always worth shopping around come renewal time because prices change all the time.

If that is the absolute lowest you can find it and have you though about adding on older family members on as second drivers (not primary so you still get the NCB) as that can also lower the premium even if they never actually drive the car.

Personally I would pay the insurance up front out of the savings as you will still be left with enough money to keep you going for a few months if something unexpected happened.

wiseman405

Its a nine month scheme with aviva. When you first take it out they specify that you have to be with them for 18months, i have saved my self £600 by not claiming so thats one good thing, and yes at the time it was the absolute lowest.
Also my mum is included on the policy, thanks for the advise, i think i will pay it all up front, its just i HATE touching my savings
Thanks again
Tom

opinions4u

wiseman405 wrote: »

Its a nine month scheme with aviva. When you first take it out they specify that you have to be with them for 18months, i have saved my self £600 by not claiming so thats one good thing, and yes at the time it was the absolute lowest.
Also my mum is included on the policy, thanks for the advise, i think i will pay it all up front, its just i HATE touching my savings
Thanks again
Tom

Good man!

Why not save up £160 a month in a regular saver account and earn interest on it to pay for next year's premium?

It's always better to earn interest than to pay it.

www.moneyfacts.co.uk will compare choices.

Halifax at 5% is currently among the best.

(If you need to pay your premium prior to maturity of a regular saver, pay out of your £11k but then replace it with the proceeds of the regular saver on maturity).

wiseman405

Why is everyone so helpful on this site I love it!! I'm one step ahead though! I have two reg savers one at 7% the other at 7.75%. I will prob take the money out my isa as its literally paying nothing
Thanks
Tom

chopperharris

My last insurance quote from aviva nearly a grand , from directline 400 quid.on an xf 3l

Forget the sites that compare insurance , it doesnt include direct line and some others.

If your car is cheap then just tpft , buy a tracker and you can move it from car to car or just drive a 1 point O...sizeable discounts for trackers , low miles driven.

Advanced driver discounts.

Reaper

chopperharris wrote: »

Forget the sites that compare insurance , it doesnt include direct line and some others.

I wouldn't go that far unless you are prepared to do 100s of quotes. No one company will come out cheaper for everybody.

Martin has useful tables here which tell you how many brokers/insurers each comparison site covers.
http://www.moneysavingexpert.com/insurance/compare-cheap-car-insurance