Insurance question

C

CrazYmonkeY159

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I my girlfriend is looking for a car. She is a student so naturally does not have steady income however over the past few years of her being a student she has been able to save up for a car (R100k-ish)

Now I come here because I was fortunate enough to have a very generous mother to buy my first car. She did all the admin/banking/insurance stuff I literally do not have the slightest idea about the process. However I told her she should be able to buy a new cheap hatchback for the money that she has saved up, however, we have no idea how much insurance will cost for a under 25 female driver. We also have no idea if insurance companies require their clients to have a steady income.

Basically I am asking is there hope for a student to get insurance on a car that they could buy in cash? Anyone in similar situation?
 
There will be no problem getting insurance. It is an annoying 30 minute phone call, but that is all it takes.
Make sure you/she are 100% honest when going over the policy re where car is kept, whats it is used for and who will be driving.
 
Chevron said:
Insurance should be about +-R600.
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I would say min R600 given her age. If possible, she should put it on her parents name, much cheaper premium.

Insurance don't care about your income. The bank would if you are applying for finance.
 
They won't care about income. She will just need to have enough funds in her account every month when the debit order goes off.
 
how can anyone say R600/month with out knowing specifics, i.e. excess - 10%, 5%,0%?

also note that her insurance will be high till she's 25. how long has she had her license? under 2 years, if so, add more money on? is there going to be a tracker or similar in the car? alarm? where will it be stored at night? does she live in a complex or a stand alone house?
 
Well if she has managed to save 100k as a student, no idea HTF she has managed that but i anyways moving along.

It might be in her interest to finance the car via a family member and pay the monthly fee on both car and insurance. So let's say together it comes to 2k a month(cheap 90k car with 20-30% residual) including insurance. That is 40 odd months of payments.

Just an idea, not saying it is the correct idea.

She could also look into that pay 699 for a car story and see how that works, a mate has a fiesta and he pays 1.9k a month they take care of the rest. Not sure how it works.
 
F1 Fan said:
I would say min R600 given her age. If possible, she should put it on her parents name, much cheaper premium.

Insurance don't care about your income. The bank would if you are applying for finance.
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Don't lie about whose car it is. They will repudiate faster than you can blink. They will even question her friends and classmates in case of an accident. I claimed last year. My car was parked and someone drove into it and they measured my tyre thread to try to get out of paying. Luckily the tyres had about a 1000kms on them only.
 
lived666 said:
There will be no problem getting insurance. It is an annoying 30 minute phone call, but that is all it takes.
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Or you can go with MiWay. Get as many quotes as you like online and have the car insured without speaking to anyone. When I got my new car last month I took out the insurance online at 23h00 the night before and the car was insured the next day.
 
My advice:
1) Put everything under her name if she can afford it. The sooner you are able to start building your comprehensive insurance history the better. This works in yoru favour similar to a credit history. Will mean that her next car insurance premiums will be much lower than they would have been had she lied and put it on her parents name. And regardless after a year or two she renegotiate the premiums due to having a better history.
2) Don't lie about who's car it is. Instant repudiation come claim time.
3) Go with a broker!!!!!!!!! Especially seeing that this is a slightly more complicated situation than usual.
 
killadoob said:
Well if she has managed to save 100k as a student, no idea HTF she has managed that but i anyways moving along.
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If you must know she has been on a scholarship which gave her excessive amounts of money for living expenses. Added to the fact that she has been a part-time tutor for her whole stint at uni gave her the opportunity to save.

Thanks for the advice everybody :) will put it to practice
 
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