Gee, I’ve been young with a negative net worth that I would calculate every year at tax time. Never in my life did I not have car insurance or health insurance for that matter. I didn’t buy life insurance until I was 20 though. Just enough to pay for my college loans and burial. Never used it though.
It’s also a sub-model of BMW X1. The 18D SE is in insurance group 22 and the M Sport variant is in group 23. This reference shows insurance cost for both is £1431 per year for an average 20 year old. If our new friend comes back maybe he will clear this up for us.
You are probably right about buying a 2011 X1 for under £1000, it may be a 118D instead. I suppose a high mileage beater with a salvage title could be had for that low price. I understand your suggestion that it might be in group 18. I am just offering a different possibility.
I’m not an attorney but my understanding is that court ordered retitution from a criminal act may NOT be dischargeable by bankruptcy.
I can envision other driving behaviors that could result in serious injury or Manslaughter by Automobile which may not be dischargeable in bankruptcy…
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You are correct. Also if a judgment is obtained “in fraud” it cannot be discharged.
Please don’t suggest to anyone, especially young and new drivers, that there is ANY Golden Key that will allow you to escape your responsibility.
In my State simply Driving Without Insurance:
First offense Up To 5 points, $1,000 and a year in jail.
Second offense Up to 5 additional ponts, $2,000 and 2 years in jail.
And if there is any significant personal injury, God help you because they will own your “assets” until the day you die. .
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Luckily, for accident victims in most states, a youthful driver’s current financial status is irrelevant.
Yup!
Promoting–or attempting to promote–the concept of driving w/o adequate insurance is a sure formula for long-term financial problems, not to mention possible criminal penalties.
Ask your insurance company for a rate quote if your chose a Corolla or Civic instead of a BMW. MIght might more sense to start with one of those cars, and switch to BMW in a few years, when your rates will have come down. Insurance companies have to charge you more if you have a BMW vs a Corolla. One reason is the BMW’s performance is better, so more likley you’ll drive it faster andmore aggressively, which means more chances of an expensive to repair fender bender. Secondly, BMW repairs generally cost more than the same repair for a Corolla , both parts and labor. If funds are tight, common sense says to go with the Corolla now, and the BMW later.
Not sure about UK, but significant insurance discounts possible if the main driver is the parent, and the less than 21 years old son/daughter is a secondary driver. No harm to ask about that.
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The majority of the cost is for liability insurance. If someone chose to buy collision insurance for an old car like this, the insurance company wouldn’t pay to have it repaired, they would pay the owner the 800 quid and sell the car for scrap.
We seem to have conflicting opinions on whether it can or can’t be dicharged in bankruptcy. For the last 50 years, my understanding is that it cannot be discharged.
In other words you cannot be released from your obligation. Rationale may be that it is payment for a crime, and crimes cannot be affected by bankruptcy. A 45 mil judgement was just made recently against a guy, ya think he can just file bankruptsy?
Good point, liability insurance will be the main expense a 19 year old driver faces. But same principles apply, performance car means faster & more likely aggressive driving likely, and more likely fender benders. Or worse. Even though insurance company won’t have to pay to repair the BMW w/no collision insurance, they’ll have to pay to repair the other car.
Not all BMW’s are performance cars, some have 4 cylinder engines with 80 to 120 horsepower.
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Good reason for OP to consult their insurance company for comparative quote, BMW vs Corolla or Civic.
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From my own experience the possibilities for young drivers to do stupid things is only limited by the horesepower at their disposal and let’s face it, things happen a lot bigger at 100 MPH than they do at 50 MPH though they happen a lot more frequently at less than 50 MPH. But forgetting the immense psycological terror of not having the coolest car in school there’s something to be said for delayed gratification.
Simply look at the bidders for Hemi “Guda’s”, GTO’s , Mach 1’s, early Corvettes and XKE’s and I’m sure you’ll find a listing of “poor boys” who couldn’t afford them in their youth but after years of striving can easily afford the goals of their youth, at whatever the price.
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Yeah. Amber that’s why insurance on my 36 hp vw was only $26.
I suspect the year that occured had something to do w/low fee … lol … my first university, a major university, the tuition bill for a full-load came in at $130 per quarter.
I’m not sure about where you live, but in the US drivers can take a driver’s safety course every few years to get a discount on your insurance.
Yeah mine was $425 a semester, no interim, plus of course another $500 for room and board,pay your own laundry. So $1000 shot twice a year. Still $26 was close to my $25 car payment so not insignificant.
If you deposited an extra $100 though, they froze tuition and you got the 100 back as a senior. Some didn’t do it. I have no data on which majors. No additional comment to avoid a flag.
Your Pontiac had 245 horsepower, was the insurance payment 6 times more?
I factually don’t recall what the Pontiac was but suspect it was the same based on the value of the car and I don’t think liability changed much.
The type of car and horsepower are main factors in the cost of liability insurance, you stated your VW had low-cost insurance due to the low powered engine.
However, we are talking about average cars, not exotic cars, I doubt the OP bought a V-8 turbo charged BMW for $1000.