Car Settlement and Insurance

Tsepz_GP

Tsepz_GP

Executive Member
Joined
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Location
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Hi everyone,

So I have now managed to settle my car loan with the bank, I am just waiting for the papers to come through.

The car is a 2016 Clio 4 with just over 20,000km on it, so I plan on keeping it a very long time (at least 5years), however I remember a thread here some years ago about insurance not being so kind about cars that have been settled.

So I wanted to know:

1. Is it best that I inform the insurance company that my car is no longer financed?
2. Will this hurt me in terms of shopping around for car insurance? As I am also planning to change my car insurance to get a cheaper premium.
 
Just get the vehicle transferred full into your name.
At the time of a loss or claim the insurer's will require a letter stating that the vehicle is not contracted into hp and that there is no outstanding amount.
 
Hemi300c said:
Just get the vehicle transferred full into your name.
At the time of a loss or claim the insurer's will require a letter stating that the vehicle is not contracted into hp and that there is no outstanding amount.
Click to expand...
Thank you so much! I will do this immediately.

After much searching around the Forum and Google, it seems like I confused all this with the whole Settlement Penalty situation.

Thanks again!
 
Insurance companies don't give a hoot whether you or your bank own the car. Just ensure you do the change of ownership into your name as Hemi300c said.
 
Insurance is actually cheaper when vehicle isn't on finance. higher risk of loss when vehicles are financed.
 
I have cars that i have bought cash and there was not a problem weather it was bought cash, one i did have a problem with and i was paid out, really if it is financed or not should not be a problem. Shopping around for insurance is great i actually changed in December and i am saving about R400 a month. Make sure you have car hire VIP it saved me once.
 
Doesn't seem to effect my insurance, I've got one paid off car and it's not any different.
 
Thanks a lot guys!
Time to shop for insurance again, my premium is far too high.
FiestaST said:
Congrats on paying off the vehicle so quickly man.
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Thanks a lot man. :)

Now to save for something truly awesome, for the next few years.

In all honesty I may just get the next gen Clio RS Trophy, but it would be a used model, so that's quite a long time away.
 
Last edited:
No penalty on early settlement with bank if vehicle is <250k, correct?
 
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