Quick Insurance estimate

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Kompete

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Need quick rule of thumb on insurance premium as % of monthly installment on car; assuming full comprehensive insurance; and installment agreement of over say 60 months.
 
Depends on the car, your age, and whether or not you have claimed before.
 
The insurance industry is quite sneaky. They ask you about your previous insurance and premiums paid in order to charge you a similar amount. I have yet to see a site that offers an anonymous quote on a specific vehicle and driver profile.
 
There are no set rules that work, but generally as you get older the premiums/car value ratio decreases. But your quote will be based on many factors such as car type, drivers license age, claims history, security on the car.
 
Kompete said:
Need quick rule of thumb on insurance premium as % of monthly installment on car; assuming full comprehensive insurance; and installment agreement of over say 60 months.
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Nothing to do with instalment on the financing deal. These two contracts are "divorced". As above, your premium will depend on your age, car make, year, model, area you live in, tracker, smash&Grab, replacement value of car etc. Almost impossible for a rule of thumb.

What I can suggest is to insure your car and household goods under the same policy as it diversifies your risk. Eg. VW Golf VI 2.0 TDI for a 30 year old in Cape Town will cost around R1400 a month. Insure it with R150k of household goods, the premium will go to around R850 (based on personal experience - nothing to do with ROT).

Skip hippo. Rather www.directchoice.co.za
 
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Guys, I understand all this. I was merely looking to see if I can create a general rule of thumb that aggregates all these variables.

Something like: "a reasonable monthly premium should be between 0.5-1.5% of market value of car" or "8-15% of monthly installments given full HP over 60 months";

So the next question is, how closely do these rules of thumb apply to you?
 
I dunno hey. Up until recently I was paying just over R1000 insurance for my second hand Hyundai Getz 1.6 2005 and my installments is about R1950 so that's over 50% of my monthly installment. And this is after I turned 25. This was with Momentum STI who by the way have excellent service but price was steep - mind you these premiums went up by around R100 after an accident. And the likes of Outsurance and Budget could do no better even before I had an accident, some other popular Insurance companies quoted much worse - like R2000 and in the region of.

Just recently I got fed up and phoned this newish MiWay and they have now cut it to about R650 or thereabouts. So now my insurance is equivalent of about 33% of my monthly installments.

But all in all wots this rule of thumb you on about? :P if I could pay less and still have decent excess and cover I will :)
 
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Fully comprehensive is 25% of my monthly installment...u can of course adjust this radically by adjusting your excess
 
Lets see as a matter of interest if I calculate how much I have given to insurance approximately -

+ - R1000 for 3 years = R36000 in total

Claims:
Damage from collision on my car at intersection = R17500 paid by Insurance + R4000 excess from me (buggers never figured out who was at fault :/)
Windscreen replacement from stone hitting it = R3500 (if memory serves) + R500 excess from me
I have used no additional service eg rental cars and roadside assist and all that jazz

So if my calculations are correct even after two claims made in 3 years insurance companies have made R15000 from one customer and I have had to fork out an additional R4500 over and above the R36000 insurance I have paid in total.
 
Jonny Two Shoes said:
Lets see as a matter of interest if I calculate how much I have given to insurance approximately -

+ - R1000 for 3 years = R36000 in total

Claims:
Damage from collision on my car at intersection = R17500 paid by Insurance + R4000 excess from me (buggers never figured out who was at fault :/)
Windscreen replacement from stone hitting it = R3500 (if memory serves) + R500 excess from me
I have used no additional service eg rental cars and roadside assist and all that jazz

So if my calculations are correct even after two claims made in 3 years insurance companies have made R15000 from one customer and I have had to fork out an additional R4500 over and above the R36000 insurance I have paid in total.
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Its insurance...and of course they are gonna make money off most customers....its a mathematical certainty...you are paying for the peace of mind that if your car gets written off....insurance should cover it......because you most likely cant afford to lose 150k+ on a car being written off...

I am the opposite, I have had my car insured for just over 18 months, at R750 a month = approx 14k....had someone rear end me costing R35k in damages....
such is life..
 
Jonny Two Shoes said:
But all in all wots this rule of thumb you on about? :P if I could pay less and still have decent excess and cover I will :)
Click to expand...

Just a curiosity and seeing how effective 'the law of large numbers' is; at an individual level one would see huge variances, but as you aggregate these numbers the variance should reduce dramatically, giving you the opportunity to determine a 'rule of thumb' - which is useful for quick/dirty calcs e.g. to see how much of an outlier you are or not; calculating say the the market value of insured cars on the road or industry GWP depending on which variable is available and so on.

So far my hypothesis is that "a reasonable monthly premium should be between 0.5-1.5% of market value of car". Sure you will have huge variances at an individual level, but an an aggregated level this might hold...to be proven
 
I'm paying around 20% of my monthly installment in insurance premiums. (60months straight finance)
I'd stay away from excesses if possible... ask for an excess waiver option.
 
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