Is this true?

Ex-RoNiN

Ex-RoNiN

Ex-RoNiN

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Joined
18 Oct 2002
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I've been told that insurance wise its much cheaper for a new driver to buy a brand new (smallish) car and insure it (fully compr. of course), than it is to buy a used car and insure that instead :confused:

I can see the point were the premium to go down by like a grand, but surely over 5 years it would be cheaper to insure the older car, no? :confused:
 
Well, only since buying a newer, smaller car will have a lower ins group that an older, bigger car. A 2000-reg Corsa will cost the same to insure as a 2006-reg Corsa (albeit maybe slightly different due to additional driver aids in the 2006-model)
 
I dont know if I know what your getting at, but newer cars are generally a bit cheaper for new drivers because of the safety features and such like. But brand new makes no difference as far as I know as cars that are a few years old have airbags and ABS etc...

Its all about how ofted the cars are crashed and by whom etc...

In any case do some quotes on different cars and see what comes out, everyone is different, and every car is different!
 
Samtheman1k said:
If you'll lucky, you might get free insurance if you buy certain new cars!
Click to expand...

yea right!


So in general, its cheaper to insure new cars, but say we're talking about a £12k Alfa 147 - a 2001 model costs about £1500 to insure as a new driver (am 25), assuming the Alfa cost £5k to purchase.

Now, if I were to invest into a new one for £12k, what would insurance be like?

How does the insurance for the used one though, assuming no claims, progress down from the £1500? £1200 after 1 year, £1000 after 2 years etc.?
 
If the car models were identical, more. As the value of the car would be higher, and that is factored into the cost of your insurance (if you're fully comp).

Your insurance will stay pretty much the same, however each years NCB gives you a discount. Something like

1yr - 20%
2yr - 30%
3yr - 40%
4yr - 50%
5yr - 60%

depending on insurance company.

Obvioulsy the fact that your age is changing, will also play a part in it too.
 
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Hmm just had a look and it seems as if a new Alfa will come in at £300 cheaper a year in premium.

Coupled with NCB, I don't think investing into a new one is therefore justified :(
 
Ex-RoNiN said:
I've been told that insurance wise its much cheaper for a new driver to buy a brand new (smallish) car and insure it (fully compr. of course), than it is to buy a used car and insure that instead :confused:
Click to expand...

Insurance has far more to do with the cost of the damage you do to other people and their cars than loss to your own.

Despite the fear factor, your car is not likely to get stolen (and even less so for newer cars), nor are drivers in small cars as likely to write their cars off in single vehicle incidents as drivers of larger cars (hot hatches excepted, of course).

For example, if I slam my new Fabia vRS into a tree, the most I'm going to cost Quinn is £12,000. If, on the other hand, I pile into someone else, you've got the cost of their car, plus the cost of any medical treatment they require, plus legal costs and, possibly, plus any claims for compensation over and above this.

In short, only a small portion of the cost of your insurance is about you (~25% judging by the difference between tpft and fc quotes) and the rest is about the damage to other people.
 
Stange I know. I was sorting out my Dad's insurance from an old car to a new Focus and it was something like £100 cheaper. I queried this, and the insurance call centre monkey said (in a grating northen voice) due to better security?
 
Might be slightly cheaper. But then if you get an old car you only need TPFT much cheaper...

Better of buying a bigger car that young people don't drive. What ever the insurance group is, it'll probably be cheaper.
 
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