Monthly instalments for 18 year old's car insurance

Hello!
My son has his driving test next week. He's already bought a car and now we're looking at car insurance. My question is.. are insurers likely to allow him to pay in instalments as he doesn't have any credit history for them to check? I really don't want to have to lend him the full amount up front and have him repay me in instalments, I need my cash for other things right now.

Thanks in advance
AnnieG
Say what you mean.. mean what you say... without being mean.

Replies

  • wjr4wjr4 Forumite
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    AnnieG wrote: »
    Hello!
    My son has his driving test next week. He's already bought a car and now we're looking at car insurance. My question is.. are insurers likely to allow him to pay in instalments as he doesn't have any credit history for them to check? I really don't want to have to lend him the full amount up front and have him repay me in instalments, I need my cash for other things right now.

    Thanks in advance
    AnnieG
    My car insurance was the first type of credit I ever had, apart from a basic bank account with no overdraft - I'm sure it will be fine.
    I am an Independent Financial Adviser (IFA). Any posts on here are for information and discussion purposes only and should not be seen as financial advice.
  • EdGasketTheSecondEdGasketTheSecond Forumite
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    It shouldn't be a problem as if he doesn't make repayments, they will just cancel the insurance so they can't really lose.
  • forgotmynameforgotmyname Forumite
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    Hope he SORNd the car he bought otherwise he will have less money for insurance when the DVLA sends him a nice little invoice for having an untaxed / uninsured car.
    Censorship Reigns Supreme in Troll City...

  • csgohan4csgohan4 Forumite
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    paying monthly is not money saving and you pay much more than the annual amount. Did he pay the car on finance as well??
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • PasturesNewPasturesNew Forumite
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    The problem with paying monthly is ... the motivation to keep up the payments if the car breaks down, is nicked, or written off in an accident... those monthly payments still need to be made, even though there's no car and nothing to show for it.

    It's best if it can all be paid up front ... but you're now stuck between a rock and a hard place if the savings haven't been built up and the car's already been bought/exists.
  • societys_childsocietys_child Forumite
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    Should be pointed out that "monthly insurance payments" are normally a loan which is repaid over the twelve month period.
    ie if the vehicle is sold or written off after only a few months, the debt (full premium + interest) still has to be repaid. Many don't understand this.
  • csgohan4csgohan4 Forumite
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    Should be pointed out that "monthly insurance payments" are normally a loan which is repaid over the twelve month period.
    ie if the vehicle is sold or written off after only a few months, the debt (full premium + interest) still has to be repaid. Many don't understand this.

    Sadly we still get threads on here, about people complaining their car is written off and the insurance has ceased, they have to pay the full amount now
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
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