Best Car Insurance For Young Drivers

Questions and Answers

Your Questions About Cheap Insurance For New Drivers Young Drivers

August 1, 2012

Maria asks…

Would it be better to keep making payments on my totaled car, and use insurance money for a new one?

Here is the situation:

My car was stuck by a semi from the rear, and the truck driver’s company who has their own insurance company, has given me a check for the car, claiming it to be totaled.

This is where things get tricky, The company DOES NOT want my totaled car, stating the title will be delivered to the shop or person in possession of the vehicle, who happens to be me.

Now I have my car which has sever damage done in the rear driver side, and a check for the car in an amount to pay the entire loan off. The damage to the car can be fixed, and the car is drivable and also has a brand new engine.

Another twist to the story is that I am moving in a couple of months (mostly delayed by the fact that i have physical therapy to attend) And otherwise have cut off most of my ties to my current hometown, and in desperate need of a vehicle.

The vehicle i planned on purchasing next is priced at $5,400 but the dealer said he would give me a better deal if i decided to pay cash instead of financing. My car loan is currently $7,493, and the check i am receiving for the car is $7,700.

Now this car was my first major purchase, and besides a credit card, a cell phone, I have nothing else in my name, and did not qualify to finance the motorcycle with the price at $5,400 without a co-signer.

Now I am only 20 yrs old, and have had my car for 2 whole years this July. Would it be better for me to pay the loan off on the car, then try again to apply to be financed on the bike, or to take some of the payment for the car to buy the bike outright, use whats left towards the loan and continue making monthly payments of $230.

In my eyes either way I will have a car note, and I am moving to Hawaii (for school) So the car was never in my plans to begin with, and now I would have a payed for car that i was going to give to my dad (who owns the shop) to fix for my younger brother anyways. And I was going to ship my bike over because cost of bike + shipping is still cheaper than total cost of the bike in Hawaii.

And I don’t know much about it, but would I in any way qualify to refinance the car, say if I did make a lump payment of $2,000 or $3,000 bringing the loan down to $5 or $4,000 would that help lower payments any?

Thanks in Advance for any and all help!!

Administrator answers:

You have to 1-pay off the old car with that money and get rid of it or 2-use the money to get it fixed and keep paying teh loan. If you do not do one of these, you will be facing a nightmare with the loan company – they could call the loan due anytime if they find out the car is totalled. And if you spend that money on another car, you will be in major trouble.

If you are moving to Hawaii in 2 months, and the car is drivable – pay off the loan – keep the car until you move and then sell it – to a junk yard if necessary – it will cost a fortune to move a car to Hawaii – DO NOT buy a new car before you move

Richard asks…

Teenagers and car insurance again?

so i just posted a question asking if insurance costs more for a 18 year old. i loved all the answers they were really helpful. so the story is my friend thinks she’s gonna insure a car and pay only 60 a month in arkansas but my moms insurance company says me being 18 i would pay over 100 dollars because im so young. ive had everyone tell me that thats right so it sounds pretty impossible for a new driver 18 years old to pay such a cheap price right? please give me some insight!!!

Administrator answers:

$720. Per year sounds cheap for an 18 year old buying insurance on their own but no one here can tell you if it is true or not. The only way to know what an insurance premium would be is to ask an insurance company.

Lizzie asks…

I want to buy an automatic car but not sure what to buy?

I learnt to drive in a manual, drove a manual for a bit but now i’m buying a new car, so i was going to get a manual but now i want to buy an automatic because i’m just lazy and feel like i can get around quicker in an automatic. So my budget is about £2500, i know that automatic transmissions can cost the earth if they need to be fixed or replaced so i need some advice on what car would be most reliable. I am a young driver so.. i was thinking about getting a Citroen C2? As they are cheap on insurance and tax but i’m not sure. Thanks guys.

Administrator answers:

Well if you’re interested in reliability I wouldn’t go buying a Citroen C2 that’s for sure…

You’re right, autos are very expensive to fix when they break and the ones in most small cars are pretty fragile to be honest.
Personally I’d advise against buying an auto at all if you don’t really need one, but if your mind is made up the one bit of advice I’d give you is avoid all these ‘flappy paddle’ autos and try and get a good old fashioned torque converter slushbox, they’re far more a proven technology and less likely to go wrong so long as you change the fluid & filter every 36,000 miles or 2 years.

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