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How tf do young people afford cars?

I have a relatively well paying job, but owning a car seems to be ridiculous (insurance wise). I downgraded from a ‘66 plate fiesta ST which cost me £1800/year to a ‘55 plate Peugeot 206 and the insurance was still £1650/year for a car worth no more than £1000?!?, is there something I’m missing. I don’t mind laying out money for a car but the insurance just seems ridiculous, I’m 21, have a squeaky clean record, I have pass plus, have owned 2 cars already with not a scratch on either, yet they think it’s reasonable that I’m gonna write off my car multiple times per year...any insight into my situation? Thanks.

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Maybe their parents buy it for them
They can't, the parents can though
Reply 3
Avatar for Drewski
Drewski
19
Original post by JPWR1
they think it’s reasonable that I’m gonna write off my car multiple times per year...

No, they think you're going to write off your car and cause a lot of expensive damage in the process.

And the statistics reflect this.
Original post by JPWR1
I have a relatively well paying job, but owning a car seems to be ridiculous (insurance wise). I downgraded from a ‘66 plate fiesta ST which cost me £1800/year to a ‘55 plate Peugeot 206 and the insurance was still £1650/year for a car worth no more than £1000?!?, is there something I’m missing. I don’t mind laying out money for a car but the insurance just seems ridiculous, I’m 21, have a squeaky clean record, I have pass plus, have owned 2 cars already with not a scratch on either, yet they think it’s reasonable that I’m gonna write off my car multiple times per year...any insight into my situation? Thanks.


My brother got his at 20 (I think, or 21). My dad had put £50 away in savings every month for him (me as well but I'm not relevant here) for years, so he was able to buy a 3 year old car with that money, plus some of his own as well.
Reply 5
Avatar for JPWR1
JPWR1
OP
10
Original post by Drewski
No, they think you're going to write off your car and cause a lot of expensive damage in the process.

And the statistics reflect this.


But statistically, my record shows the complete opposite or do they just generalise? If so, shame on you insurance companies.
Reply 6
Avatar for JPWR1
JPWR1
OP
10
How do they afford the insurance? Assuming like me, they’re being duped into paying crazy prices.
Original post by DrawTheLine
My brother got his at 20 (I think, or 21). My dad had put £50 away in savings every month for him (me as well but I'm not relevant here) for years, so he was able to buy a 3 year old car with that money, plus some of his own as well.
Original post by JPWR1
How do they afford the insurance? Assuming like me, they’re being duped into paying crazy prices.


He lives at home so only pays a small amount of rent, and has a job (I think around £21k). He is good with money, and rarely spends it on anything that isn't necessary so he has no issue paying insurance. He has a black box too.
Reply 8
Avatar for Drewski
Drewski
19
Original post by JPWR1
But statistically, my record shows the complete opposite or do they just generalise? If so, shame on you insurance companies.

Your record shows you haven't yet, not that you won't.

And yes, of course they do. That's how insurance works. Stop being so ignorant / naive.
Can you put a parent on your insurance as a named driver? If they have a good driving record, this can bring the cost down. They don't have to live with you btw, as long as they are driving your car sometimes.

A lot of people use "black box" insurance, and this can help you use your own driving record to bring down your insurance costs.

Where are you saying you're storing your car?

Some post codes also get hammered on car insurance.

Your insurance does seem pretty high given your circumstances- have you tried shopping around and ringing up companies directly?

It will go down, given time- especially as you get to your mid/late 20s.
Original post by JPWR1
I have a relatively well paying job, but owning a car seems to be ridiculous (insurance wise). I downgraded from a ‘66 plate fiesta ST which cost me £1800/year to a ‘55 plate Peugeot 206 and the insurance was still £1650/year for a car worth no more than £1000?!?, is there something I’m missing. I don’t mind laying out money for a car but the insurance just seems ridiculous, I’m 21, have a squeaky clean record, I have pass plus, have owned 2 cars already with not a scratch on either, yet they think it’s reasonable that I’m gonna write off my car multiple times per year...any insight into my situation? Thanks.


I think you have multiple problems. First, you are 21, which would put you in the high risk section for insurers. Also, you car appears to be fairly old, so could be a bit dodgy. Insurance companies would charge you more because you are likely to put in claims.

My view is that you save up some money to get a decent car. By time you reach 25, your insurance should reduce to more manageable values.

Finally, try to compare your costs with other insurance providers. Some providers can be more expensive than others.

All the best.
Unfortunately, the statistics show that young people driving cars like 206s / Corsas / Fiestas cause expensive accidents. Essentially, your insurance company is taking a caculated risk on you and therefore they need to charge a certain amount for that risk to be worthwhile to them.

Similarly, stats show that people often make claims after getting a new (to them) car. - Probably because for some, the unfamiliarity leads to accidents. If you've owned the car for several years, your insurance is likely to be cheaper than if you've just bought it, even if you have the same no claims entitlement and clean driving record etc. etc.

I'm now 30 and have 3 cars together with my wife. One is a modified Land Rover (the weekend toy), one is a BMW 3-Series and the other is an old banger 206 that I use as a commuting / shopping car. The 206 is worth less than 2 tyres on the Land Rover but the first year I had it, it cost me almost as much to insure as the BMW or Land Rover!

I remember a few years ago, a younger friend (early 20s) needed a new car and the insurance on all of the usual 1.0 litre superminis worked-out at crazy prices...he ended-up buying a Rover 75 with heated leather seats, dual zone climate control and a 1.8 Turbo petrol engine (150 horsepower) and the insurance was about half the price of a Fiesta because the typical Rover 75 driver doesn't cause the insurance companies as much grief!
I feel like being 21 and applying for a policy is a huge red flag for insurers, they think 21yr olds are at that reckless age (especially boys). It can depend on your job title alottt, like if you put down your 21 and work in a bar they automatically think you'll drive under the influence cause the option is there :s-smilie:
Original post by JPWR1
I have a relatively well paying job, but owning a car seems to be ridiculous (insurance wise). I downgraded from a ‘66 plate fiesta ST which cost me £1800/year to a ‘55 plate Peugeot 206 and the insurance was still £1650/year for a car worth no more than £1000?!?, is there something I’m missing. I don’t mind laying out money for a car but the insurance just seems ridiculous, I’m 21, have a squeaky clean record, I have pass plus, have owned 2 cars already with not a scratch on either, yet they think it’s reasonable that I’m gonna write off my car multiple times per year...any insight into my situation? Thanks.


you have to do a lot of shopping around for the cheapest car to insure really (that's what all my friends have done).

I'm 22, drive a Hyundai i10 (brand new so does make a difference on price) and pay around £500 annually for my insurance without a black box. this is because I have 2 years no claims and live in a quiet safe area in the suburbs of a city.

you are a male (normally causes a price hike) who is 21 (again rises the price) who is driving a car very popular with the age group (again rises the price). other things such as where you live can have a big impact. my previous house came with a £300 per year premium increase as there was a lot of theft in the area.

also, if you have a relatively well paid job spending that much money on car insurance should not be an issue, maybe look into your budget and see what you are overspending on (normally always food/takeout/eating out) and try and cut down on these things.
Original post by yumavibe
I feel like being 21 and applying for a policy is a huge red flag for insurers, they think 21yr olds are at that reckless age (especially boys). It can depend on your job title alottt, like if you put down your 21 and work in a bar they automatically think you'll drive under the influence cause the option is there :s-smilie:

There are other 'unfair' measurements too, I am afraid.
I am an adult with an 18 year old, so you can guess, my age is no concern for them. I have had my licence for more than 20 years and never caused an accident. However, this year I had two 'incidents', when my car was hit by another car. Both times my car was safely parked in quiet cul-de-sac's with almost non existent traffic. I was not in the car! Although everything was duly paid by the other parties' insurers, even loan cars provided, and I had no direct expenses due to these accidents, they stay on my record as 'incidents', which unfortunately have financial consequences for 3 years, I think:-(
Original post by Klotild
There are other 'unfair' measurements too, I am afraid.
I am an adult with an 18 year old, so you can guess, my age is no concern for them. I have had my licence for more than 20 years and never caused an accident. However, this year I had two 'incidents', when my car was hit by another car. Both times my car was safely parked in quiet cul-de-sac's with almost non existent traffic. I was not in the car! Although everything was duly paid by the other parties' insurers, even loan cars provided, and I had no direct expenses due to these accidents, they stay on my record as 'incidents', which unfortunately have financial consequences for 3 years, I think:-(

That's very unfortunate :/ I know when there are accidents that aren't even your fault your premium still goes up! Insurance is a big scam anyway lol you're paying for something that could or could not happen. So if I go through the month with no incidents should i not get some money back lol? Its not good enough just getting money off my net premium
Original post by yumavibe
That's very unfortunate :/ I know when there are accidents that aren't even your fault your premium still goes up! Insurance is a big scam anyway lol you're paying for something that could or could not happen. So if I go through the month with no incidents should i not get some money back lol? Its not good enough just getting money off my net premium

I like the money back idea! I would be getting rich by now...
The reason premiums go up after a non-fault accident or claim is that you're statistically more likely to have another accident / claim. If your car gets damaged whilst parked, the insurance companies take it that it's likely to happen again (and the stats do back this up unfortunately).

The reason you don't get your money back if you don't make a claim is quite simple when you think about it: Insurance is essentially a calculated risk and the insurance company would need the money from quite a few premiums to pay-out for one accident claim. If they had to refund anyone that didn't claim but still pay out tens (or hundreds) of thousands for claims, they'd all be bankrupt in no time.
Original post by LeMansClivey
The reason premiums go up after a non-fault accident or claim is that you're statistically more likely to have another accident / claim. If your car gets damaged whilst parked, the insurance companies take it that it's likely to happen again (and the stats do back this up unfortunately).

The reason you don't get your money back if you don't make a claim is quite simple when you think about it: Insurance is essentially a calculated risk and the insurance company would need the money from quite a few premiums to pay-out for one accident claim. If they had to refund anyone that didn't claim but still pay out tens (or hundreds) of thousands for claims, they'd all be bankrupt in no time.

Yes, I heard all the 'sensible' explanations straight from the horse's mouth;-) Pity it takes only one side's interest into consideration:-x And believe me, they are far from bankrupt, actually it is one of the most lucrative businesses...
Some health insurers (like in Germany) do work on the no claim-money back principle, so somehow it is possible.
As for the question of the OP: we bought a car for our 18 year old, and one year insurance. This latter one was a bit better than some of the outrageous sums mentioned here (still more than our two cars' insurance combined:-x). We have father as named driver on the policy, which brought the price down considerably. We could not use my name due to the two freak incidents I mentioned, which I find ridiculous.

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