Very nice surprise!!!!

cormie

Well I just got my insurance renewal form in the post. I started my policy last year as a provisional license holder. I only had my license for little over a month before I got the policy. I'm still on a provisional and I've had 1 year no claims bonus.

Last year I paid €3.6K, I've just been given a premium of €2,137 + €142 service charge so total of €2,279. It says the NCD applied is 19% (of 3.6K=€700) which doesn't add up. So I got another 6/700 discount for something too:)

I drive a Nissan Micra-L,1996,class 1 use, 998cc, €2930 value with Third Party Fire and Theft insurance.

Under the "Vehicle Insured" section of the renewal info, it also says Excess (Section Use Only) € 250. What is this?


This is all good news but I have some questions to ask.
I plan on buying a new car in the next week or two. I want to buy a VW Polo 1L, it will either 97/98 or 99. I will be going class one and all the rest. Should I tell them now and get a new quote for that or should I pay and tell them later?

Someone on boards suggested to go with Hibernian and do the provisional ignition course. Can I do this without actually having a policy with them and then get a quote after? If I do want to change, and if I pay the premium due now in a lump sum, will I be refunded for what I havent used? I feel that I probably wouldn't get it that much cheaper with Hibernian even if I DID pass the ignition course.

Again, if I pay in a lump sum and within this years policy I get a full license, will I be refunded? Say if I got a full license in March will I be given a full license fee untill next renewal (next feb) or will I continue to pay provisional fees until then?

Also, I may have been caught doing about 34 in a 30 zone, one coming off a motorway changing from 40-30, I usually do it before the 30 zone but I delayed and next thing I see the cops around the corner:( I know they say it's 30 for a reason (80% chance of survival if I hit someone) which I obide but there is a particular dual lane road past Cherrywood and Loughlinstown where it should be 60KM (or 37mph) at least. I was again doing about 34 verging on 35 here. And I noticed cops were stopped up ahead. So two dodgy cases. If I do get a letter in the door and recieve 2 penalty points, how will this effect my premium? Will I be charged more if I pay the lump sum?

Thanks!

Illkillya

the chances are you won't get a fine let alone penalty points for going 34 in a 30mph zone... the police don't spot everything, especially something so minor.

I don't understand what you're so happy about though... are you pleased with your quote of €2,279? Maybe i misread your post. How old are you?

masto1983

If you ring Hibernian, the quote they give you is usually on the basis that you complete the Ignition course, SO RING AND ASK THEM!! :rolleyes:

uberwolf

afaik the provisional ignition course/ qoute is based on one of three conditions - you must a) be insured with them already b) one of your parents must be insured with them or c) I can't remember but I'm sure their website says.

If you get your new policy for the new car now, teh points premium won't kick in till nxt yr I'd imagine.

aodh_rua

Right - first Hibernian. You can do the full Ignition course even if you don't have a policy with them, but I'm not sure about provisionals. For the full one, you pay a fee for doing the course and it is refunded after or credited against your premium should you take one out with Hibernian. The only way to lose the fee is to not turn up. If you get them to give you a quote they can tell you what to expect with the minimum Ignition discount.

As for passing your test at some stage during the life of the policy, check before you take it out what they do about refunds. Some insurers will give you a refund against the following year's premium (devious way of making you stay with them), some will send you a cheque right away (assuming you paid everything at the start) and some will reduce your remaining monthly payments. When I passed mine, I was with Quinn Direct and I got a cheque in the post less then a month after passing the test - very nice!

One last thing - you said your premium is €2137 plus a service charge of €142. Is the charge for paying in installments? At 6.6% that's pretty good as such charges go - but no harm checking if the credit union or bank will give you a better rate. There's no point in giving the insurers any more than you have to.

Illkillya

Definitely give Hibernian a ring, THEN you will get a nice surprise (eg., a quote of €980)

cormie

€980??? Your joking me!! I'm 20 years old. I doubt I'll get €980?

I don't know what the Service charge is This is what is written in the Direct Debit Payment Plan:

Premium: 2,137,08
Service Charge: 142.54
Total Due: 2,279.62

Deposit: 456.05
Followed by 10 installments of: 182.29
Service Charge Rate: 6.67%
APR: 19.66%


Ok, so yeah, 6.67%=€142.54. Is this what the bank takes for dealing with it?


When I was doing 34 coming off the motorway, it was late and i was the only driver in view lets hope. I'd prefer a fine over points no doubt!! I don't deserve points


Do you think I they will do something crazy like put me back up to €3.6K if I get a new 1l car or anything?

If I get a cheaper quote from Hib can I ring QD back and tell them and see if they give me an even cheaper one? say €979 perhaps?

bazz26

Yes, that service charge is the interest rate you are being charged for not paying the full premium up front, ie. similar to a personal loan.

As for the excess of €250 - this is what you will have to pay first if you make a claim against your insurance. Eg. if you cause €2000 damage to your car and claim against the insurance company then you will pay the first €250 yourself and the insurance company will pay the remainder.

Illkillya

cormie wrote:

€980??? Your joking me!! I'm 20 years old. I doubt I'll get €980?

I don't know what the Service charge is This is what is written in the Direct Debit Payment Plan:

Premium: 2,137,08
Service Charge: 142.54
Total Due: 2,279.62

Deposit: 456.05
Followed by 10 installments of: 182.29
Service Charge Rate: 6.67%
APR: 19.66%


Ok, so yeah, 6.67%=€142.54. Is this what the bank takes for dealing with it?


When I was doing 34 coming off the motorway, it was late and i was the only driver in view lets hope. I'd prefer a fine over points no doubt!! I don't deserve points


Do you think I they will do something crazy like put me back up to €3.6K if I get a new 1l car or anything?

If I get a cheaper quote from Hib can I ring QD back and tell them and see if they give me an even cheaper one? say €979 perhaps?

OK €980 is a bit low, I didn't realise you were so young and I overlooked the fact that you're still on a provisional.

Last year was my first year on my policy with QD, I was 21 at the time on a provional and had no named driver experience etc, so like yourself I was charged €3k for a 1.3 litre car. Now almost 1 year later, I just got my full licence last Friday and the policy is up for renew soon... I did an online quotation and it came up as €1461 with QD, half what I paid last year. This could be because I'm now 22, and I think the age-related insurance costs are in blocks... aged 19-21 you're getting charged at a constant rate X, but when you hit 22 then theres a drop.

I was very happy with €1461, but I just rang Hibernian awhile ago, and they quoted me €980 if I pass the ignition course. You get a further discount if you complete the course with distinction.

My advice to you is get a full licence ASAP, I always thought it only made a difference of a few hundred quid on the premium but evidently it is more significant than that. Then go ignition, and nice low premium. If you're working, try and get a letter from your employer to speed up the driving test application.

cormie

bazz26 wrote:

Yes, that service charge is the interest rate you are being charged for not paying the full premium up front, ie. similar to a personal loan.

Oh yeah, I see the credit card debit card charge is on €2,137.08

So what is the 19.66% APR about? Do I have to pay that too? If I go with:

---

Premium: 2,137,08
Service Charge: 142.54
Total Due: 2,279.62

Deposit: 456.05
Followed by 10 installments of: 182.29
Service Charge Rate: 6.67%
APR: 19.66%

---

Will I only be paying €2,279.62 or will I be paying that plus 19.66% which is €2727.79?

If I only have to pay €2,279.62 total then I will go for the installment option to avoid risk of not being paid if I do move to hibernian or get fully licensed and thus get a better quote in the next year:)


I'm waiting for Hibernian to ring me back as she has to talk to supervisor. And I will be quoted on what it would be if I pass the provisional ignition. It says 20-50% off, it also says no penalty points is 10% off:) Let's hope the guards weren't too harsh in both circumstances.



I should really have asked my ex boss for a letter. Well I did, and I got one, but then I left that company so didn't send off the letter he gave me. I wish they would hurry up and give me my test :rolleyes:

hewlett

cormie wrote:

Oh yeah, I see the credit card debit card charge is on €2,137.08

So what is the 19.66% APR about? Do I have to pay that too? If I go with:

---

Premium: 2,137,08
Service Charge: 142.54
Total Due: 2,279.62

Deposit: 456.05
Followed by 10 installments of: 182.29
Service Charge Rate: 6.67%
APR: 19.66%

---

Will I only be paying €2,279.62 or will I be paying that plus 19.66% which is €2727.79?

If I only have to pay €2,279.62 total then I will go for the installment option to avoid risk of not being paid if I do move to hibernian or get fully licensed and thus get a better quote in the next year:)

The 19.66% is the effective rate of interest based on the fact they will be charging you the interest on a reducing balance. When you pay the deposit you will only owe €1681.03 of the original premium which is reduced further every time you make an installment. The interest rate would only be 6.67% if you paid all the money together at the end of the year. That is why they call it a service charge and they are obliged by law to quote the APR which is a standard calculation and is used so that rates quoted by different financial institutions can be compared.

I am open to correction on the specifics of my reply but the bottom line is that you will only have to pay the €2279.62

You would most likely get a better rate in a bank or credit union, 19.66% is around what you are charged on credit card balances. However, you wouldn't save loads and you might decide that the insurance company's plan is more convenient because you don't have to go through loan approval etc.

cormie

Hi,
Thanks for that, I'm still confused. What exactly am I paying 19.66% on so and when, if ever, will I have to pay that, and how does it come in to play in this quote?

I rang Hibernian yesterday and got a quote in the door this morning (quick!). They gave me a quote of €1926.11 payable in full, or €204.17 per month over 10 months (17.2% APR)

again, how will the 17.2% come into play?

Also, what do you reckon that if I ring Quinn Direct (current insurer) and tell them that Hibernian have beaten their quote they just gave me, that I will get a cheaper quote... and if I do, what do you think the chances are of then getting a cheaper one off Hibernian again? haha.

delly

I could be wrong, but the 17.2% looks to me like they are lending you the money to pay the insurance in full, but you pay monthly, like some form of finance.? maybe.

cormie

so what would I be paying in total for (a) Hibernian and (b) Quinn Direct quotes given the APR and total amount due if I was to go for the monthly option (which I really do want to).
Thanks!

hewlett

cormie wrote:

so what would I be paying in total for (a) Hibernian and (b) Quinn Direct quotes given the APR and total amount due if I was to go for the monthly option (which I really do want to).
Thanks!

You would be paying the following:

(a) Hibernian - €204.17 x 10 = €2041.70

(b) Quinn Direct - €456.05 + (€182.29 x 10) = €2278.95

And that's the best method to decide between them.

Ignore the APR because trying to work it back involves a complicated compound interest calculation and it won't change what they are charging you. What they are effectively doing involves lending you the money to pay your premium and then charging you interest on that loan.

cormie

Oh right. So I'm paying QD for instance €142.54 for letting me pay over 10 months.

How could the APR effect me though?

I just applied for ignition assessment. Feb 3rd. Do I need to know any technical details or anything or is it just driving?

seamus

cormie wrote:

I just applied for ignition assessment. Feb 3rd. Do I need to know any technical details or anything or is it just driving?

Afaik, it's a day out, with portions of sitting on your ass listening to presentations, then being assessed on what you've learned at the end of the day

cormie

I was told it's an hour with the instructor in a dual controlled car by the lady on the phone.

This is the provisional ignition by the way

the evil belly

he's right it's a piece of piss. just particiapte a bit in the class room session (they do mark you on that) and then drive properly for the afternoon. it'll be 2 candidates and an instructor to a car. you'll do 3 drives of about 10 to 15 mins each. you can't really fail, make sure to bring you licence with you though

cormie

what? classroom? I don't think so... I was told to wait in the reception of a hotel in Killiney and the instructor will "find me". I wasn't told I would share the test with anyone?!?! anyone know specifics on the APR so? How may it effect me?

hewlett

cormie wrote:

what? classroom? I don't think so... I was told to wait in the reception of a hotel in Killiney and the instructor will "find me". I wasn't told I would share the test with anyone?!?! anyone know specifics on the APR so? How may it effect me?

Again, ignore the APR, it is something they have to quote to cover themselves, a bit like when they say "Terms and Conditions Apply".

In QD's case, the service charge of 6.67% or €142.54 is EQUAL to an APR of 19.66%. It's not an extra charge it is just another name for the €142.54

You seem to be concerned that the APR will cost you more money - It won't!

aodh_rua

EvilBelly's description is identical to my experience, so unless provisional drivers get a more personalised service, this is what you should expect.

As for the APR, they only mention it out of legal obligation - it will not affect the amount you have been quoted as it is already included. If you don't want to give them the interest\service charge then check with the Credit Union or the bank.

cormie

Thanks for replies! Aha, I understand now, that's a relief. Wow, so if I go with Hibernian I'll only be paying €204.17 over 10 months. I also have to pay €70 to do the ignition but that's handy to have either way. When I do (and hopefully pass) the provisional ignition, I can just get back on to QD and tell them I'm getting it cheaper and see if they will compete+if they do get back on to Hibernian and then see if they can compete and so on:D


I'd say the provisional ignition isn't taken as seriously as the IAM as the full one. Let's hope!


audh_rua, how would getting money from the bank/credit union differ in price from paying them the interest/sc?

Thanks

stratos

cormie wrote:

I was told it's an hour with the instructor in a dual controlled car by the lady on the phone
They must really be afraid if they use a phone controlled car. :eek: