My Insurance... In Full or Monthly...

[McfcChris94]

Just ran a quote through...

With Motorcycle direct it would be £401 in full,

or a £92 deposit followed by 9 payments of £40, which is £460 in total....

being 17 the money isnt readily available, i have a part time job and the £40 a month shouldnt be much of a problem to afford, id hope...

but what do you guys think? wait a month or so and pay in full... or get on the road.... Really cant decide, i dont think id get into a mess, but theres always a "what if" like if i lose my part time job :/

[Ingah]

[Derivative]

If you wait a month before starting to ride, you will have £59 more in your wallet.

Does that make it easier?

Financing small costs is for people that enjoy being poor.

Okay, maybe the above sentence is a bit harsh. Basically it's just like paying for next day delivery. If you don't want to wait, you pay extra for the privilege (you're not gaining anything though - simply moving future expenditure into the present.)

[TamaJosh]

It's done through some messed up finance company who pays the insurance in full then adds interest.

I didn't bother, I borrowed money of my parents when I was 17 then paid it back. If your parents don't mind you could do that, then theres no interest and any inability to pay will be dealt with sympathetically, not with a court order

[CaNsA]

If you are paying for your insurance monthly you are in effect taking out a loan, usually through First Premium Finance, which cover the price of the policy in full for you.

As with all loans an interest rate applies, hence the higher price.

@TamaJosh There is nothing messed up about it. It is called business.

[Rogerborg]

Review your requirements.

You want to get on a bike and ride it ASAP. That's great, but think forward 6 months, when you've passed your tests - and you'd better pass them, so you don't get stuffed by the 3rd Directive licensing in 2013.

You won't want to stay on a 125 then, so what happens?

Will the underwriter let you switch to a larger bike? If not, you're shagged nine ways from Sunday. You'll have to cancel the 125 policy, and lose your 1st year's NCB. If you've taken out a pay-monthly policy then you'll still have to pay it all off.

Can you afford that? If not, then ask if the underwriter will let you change to a larger bike. Don't assume that they will, the cheaper 125 underwriters tend not to.
____________________
Biking is 1/20th as dangerous as horse riding.
GONE: HN125-8, LF-250B, GPz 305, GPZ 500S, Burgman 400 // RIDING: F650GS (800 twin), Royal Enfield Bullet Electra 500 AVL, Ninja 250R because racebike

[soforene]

If you need to make claim etc. then they are within their rights (read the small print) to claim the full yearly amount before processing your claim.

Insurance companies will ALWAYS rape you.
All you can do is choose the lubricant.

Get an interest free loan from your parents and pay the full amount up front.

[Rogerborg]

I'm actually waiting for the "Awww, mum and dad won't let me get a bike, it's soooo unfair" post.
____________________
Biking is 1/20th as dangerous as horse riding.
GONE: HN125-8, LF-250B, GPz 305, GPZ 500S, Burgman 400 // RIDING: F650GS (800 twin), Royal Enfield Bullet Electra 500 AVL, Ninja 250R because racebike

[CaNsA]

[pendulum]

I pay annually. It works out cheaper and it's less hassle, I hear too many stories of people having cover cancelled due to mix ups with taking payment etc. One annual payment, job done.
____________________
1998 CG125 (Sold) CB500 [+ Clio 172]
Usually_Wrong: I tend to fail more than pass. [Speaking about Theory Practice]
Usually_Wrong: im on unemployment at the moment

[CaNsA]

[pendulum]

Still haven't got over your issues with me I see. Really silly boy, how long is your childlike grudge going to last? Actually don't bother to tell me, I don't care.
____________________
1998 CG125 (Sold) CB500 [+ Clio 172]
Usually_Wrong: I tend to fail more than pass. [Speaking about Theory Practice]
Usually_Wrong: im on unemployment at the moment

[McfcChris94]

Unlucky mate, mum and dad said I c get a bike, but I'm sorting it all myself as it's good experience (they will guide me)

It's either choose a diff bike, or work more to insure the thing

NOTE I'm going to pass tests, but probably keep the 125 until the insurance ends, then upgrade.... Get the ncb

[Rogerborg]

[kernow24]

I pay monthly, hardly an arse raping, 20 quid a year to spread the
payments, what's that? 5p a day day, but then I get reimbursed my costs monthly by work anyway,
so its easier to give them a monthly amount, xx for insurance, xx for breakdown, xx amount of miles etc etc

Even if I wasn't getting reimbursed is probably go for the monthly option, but mainly
just for the convenience and being able to budget, the joys of being a wage slave.

I like to know what's going out each month, living hand to mouth its hard to find the couple of hundred for a renewal, you could save, you could go without for a month, but why bother when the difference between annual and monthlyiinsurance is so small? and let's face it, how many people actually use 'cash' to pay for their insurance, I'm sure the majority stick it on the plastic, and by the time its paid off you've racked up more interest / charges than if you paid monthly.
____________________
.........................................................................

[Derivative]

[JoeDougieDoug...]

[GrumpyGuts]

I have to pay it montly, I didn't have all the money at once! However my next payment will mean I won't have enough money to tax my new bike
____________________
My Bikes: Lifan Beat 125cc '11 -> Suzuki B120P '76 -> Suzuki EN 125-2A '08 -> Honda CG 125 '04 -> Honda CB600F Hornet '98 -> Kawasaki ZZR 600 '99 -> Kawasaki GPZ 500S '95 (Current)
Theory test passed - 09/02/2012 >>>> Module 1 passed 24/07/2012 >>>> Module 2 passed 24/10/2012

[lihp]

[DrSnoosnoo]

I pay annually. Mr overdraft man let's me pay it off whenever I want to and a much lower interest than what the monthly rates are that the insurers provide.
____________________
I'm Sam; Northern, Ginger, Lover
Did have: '95 ZZR600 '83 CG125 '97 ZZR1100 '15 Hypermotard 821 SP Do Have: '10 ZX10R

[pits]

Derivative, I pay monthly, and it is far from a case of "being poor" everything I own is paid for, just works out easier for me, with 3 bikes, 6 cars, the house, it is easier for me to keep track of things, and for example a month like this month where
My Ducati needs
MOT
Insurance

The 528 needs
MOT
Tax
Two tyres
Inspection II service

The 518 Needs
MOT

The 330 needs
Insurance
4 tyres


The Lolvo needs
Cambelt and fluids change


Thankfully the 840 and the Defender don't need anything at the moment, but that is a few grands worth of out goings, realistically the house costs me around £1500 a month, then add the £1000 the cars probably need in running costs, and you're at £2,500 a month outgoings, now if I add the £1000 for insurance, then it doesn't exactly leave me a lot of wiggle room, so if I can change that £1000 or so for insurance down to £200, then sobeit, gives me £800 left to play with essentially.


in the grand scheme of things insurance works out fine on finance, my Duke costs me £200 as one payment, or £240 on finance over 52 weeks it is what? £4 a week extra who the fuck cares about £4 a week.



Break it down into a weekly cost, for you it is about £6 a week more to do it on finance, now is £6 a week more than you can afford? On the flipside you do start to built up a credit profile, if you make all the payments on time and what not you will start to get better rates on finance, for me at that age.. £6 a week and help with credit profile is much more use, but that is me personally and you need to make every payment on time.


That's me personally, build up a decent credit profile, especially in this day in age where it is very easy to come unstuck and you may just need a loan to bail you out, don't live your life on finance though, the only thing I finance is my insurance.
____________________
Stinkwheel: You have no right to free speech
00:32:08 Blau Zedong: yes, i am a massive CB400 fan and collector
00:33:00 Blau Zedong: the CB400 is my favourite road bike

[TamaJosh]

[Derivative]

If you find it easier to pay monthly, fine.
For me, paying at the beginning of the year is less hassle - it's out of the way.
I have very very few 'forced' monthly outgoings, by choice. I pay for my rent every three months, I'd pay for it annually if it were possible, you have to pay it, why bother putting it off?

[Alpha-9]

[weasley]