Young male, luxury car, how to get insurance down?

swbrua

I am a 20 year old male and I want to purchase a "luxury" car. I am currently looking at either an Audi or BMW with the cost being around £25,000 (this is of little concern, please do not give me financial advise, I'm only interested in the question posed and no I won't be going into debt to pay this).

I have a problem though, I've only got my license 2 weeks ago so I am a "new" driver, I have no history, I'm young and Male and I want a very good car, which is inevitably causing problems with insurance... all insurers (besides 1 which looks suspicious and bad) want £10,000 per year to insure me. This is not something I am willing to pay considering spending that much money when I could get a cheaper car and spend less and although it isn't what I want it's the financially sensible thing to do.

So here's my question: how can I decrease the cost of insurance on a luxury car as a young male in the fastest time possible? Would it make sense for me to get a reasonable car (say £10,000 cost) and insure it at maybe £3k/year and then in 2 years they would see that as proof I was a good client, or would the value of the car (and therefore yearly) cost not matter? Would it make most sense to get a second hand £1000 car, pay £1500/year insurance for 2 years and then try to get the nice car? This assumes no accidents or claims. I think the best way to ask this is: does the value of the car previously insured affect future claims? Do they check anything besides your age, gender and no claims?

My aim is to decrease the yearly cost of insuring myself on a nice car in a reasonable time period (I would hope 2 years, but obviously longer if necessary) and in an efficient manner. If it would require me to purchase a £5,000 car today and then pay £4,000/year for 3 years to insure it, I may as well get the car that I want now, but if it'll cost me £2,000 to purchase a car and £2,000/year to insure it then it would make financial sense to do that.

(as a side note, why is a low end BMW considered luxury, I always imagined it would be things like Ferraris that were the low end of being labelled luxury)

s_b

I've only got my license 2 weeks ago

you honestly believe you arent going to make a claim dont you
best of luck
its not going to happen
£10,000 sounds a cheap proposal to me by the way

slyracoon

You answered it yourself, its about building up your driving experience and no claims. The best option is to get a reasonably priced car in a low insurance group to build up your no claims. Obviously as soon as you claim the price will shoot back up and you'll start all over again.

I feel fortunate that I'm a young male, passed when I was 17 and now have 5 years no claims and only pay £300 fully comp, building up the no claim isn't easy, being young and inexperienced the odds are stacked against you. Good luck.

split_second

cheapest way to get your insurance down is to earn ncb and experience, neither of these are quick or cheap but they are the right thing to do.

if you have £20-30k to spend on a car stick it in the bank, invest maybe £2000 on a well looked after car, keep on top of maintenence and when (not if) you make a claim make sure the garage sorts it out properly.

a reliable car that is and has been well looked after is an investment

fivetide

If you get something super nice you'll be gutted when you kerb the alloys etc.

I'd go with a used car that's had most of the depreciation taken out of it and get some no claims.

Beyond that, sometimes adding an older family member can bring premiums down (not putting you as a named driver on their car, that's fronting) alternatively if you don't mind having a curfew, some companies will do special young driver cover where you have a black box fitted to the car to monitor how you drive and you can't be out from 10pm to 6am (or something).


You can get some smart looking motors without the big engines though. Some top spec models will have all the toys a BM has and won't lose you a lot in depreciation.

5t.

Ionkontrol

If you have to ask this question, I worry about your common sense on the road.

treeboa

unfortunatly young drivers and cheap insurance are not bed partners, look into the free insurance on a new car offers, see if you fit that criteria

swbrua

s_b wrote: »

you honestly believe you arent going to make a claim dont you
best of luck
its not going to happen
£10,000 sounds a cheap proposal to me by the way

I have no idea, if I'm going to crash I'm going to crash. I don't plan to drive much and I have no problem paying out on my own if I am the responsible party in any crash involving others (or if I damage just my own vehicle). As I said in my post, if £10,000 is the only amount I'm going to be able to pay I'll do it, but I don't want to spend that much.

slyracoon wrote: »

You answered it yourself, its about building up your driving experience and no claims. The best option is to get a reasonably priced car in a low insurance group to build up your no claims. Obviously as soon as you claim the price will shoot back up and you'll start all over again.

I feel fortunate that I'm a young male, passed when I was 17 and now have 5 years no claims and only pay £300 fully comp, building up the no claim isn't easy, being young and inexperienced the odds are stacked against you. Good luck.

I guess I'll get a second hand cheap vehicle then! Is that £300/month or £300/year?

Ionkontrol wrote: »

If you have to ask this question, I worry about your common sense on the road.

10/10, excellent snark! I am impressed by this more than the real help I've got!

mark5

1 years NCD will knock 30% off the premium for you so you already know the answer really!

answer to your side note:
a Fiesta is a small car.
a Focus is a family car.
a small BMW probably is a luxury car.
a 7 series is probably an Executive car.
a Ferrari is probably classed as a sports car.

Squiggybank

You could try taking Pass Plus - I think some insurers take this into consideration.

Lovelyjoolz

OK, so I'll resist the urge to be patronising and ask whether you have the necessary skills or abilities to handle a vehicle enormously more powerful and considerably larger than the car you learnt in and stick to the question you asked (although it's very tempting! ).

The value of the car will always be an issue, regardless of your age, in that a brand new £25k car will always cost anyone more to insure than a brand new £10k car, regardless of age/experience.

Aside from your total lack of driving experience and subsequent lack of NCD, you are, unfortunately, a 20 yr old male. You are the highest possible risk group for car insurance because lads your age are statistically more likely to crash. Couple that with the fact that you want to insure a top-end, high value, powerful car and insurers are going to want to clobber you for high premiums because chances are you'll cost them a fortune.

TBH you're looking at horrible premiums for quite a few years yet, unfortunately, but specialist insurers often offer special deals. Google Young Driver Insurance and look at the links that come up. E.g. Endsleigh are offering a deal where you can earn 1 yrs no claims in 6 months. This will help you premiums come down quicker.