Monthly instalments for 18 year old's car insurance
AnnieG
Posts: 877
Forumite
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 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.
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Comments
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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
AnnieGI 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.0 -
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.0
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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...0
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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 RIP0 -
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.0 -
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.0 -
societys_child wrote: »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 RIP0
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