Ways to avoid $6000 insurance?

[stinkynuts]

I will have to pay $500 a month for insurance very soon.

I was thinking of ways to avoid this. Any recommendations?

I thought of having a friend buy and insure a car for me that I would use.

Another thing is to simply rent a car when I need it.

I heard there are also many people who use fake insurance cards (not that I would do that). It seems driving uninsured is better than having fake insurance, since you will not be charged with a criminal offense (fraud), and "only" face a fine of $5000.

In the States, I knew people who drove without insurance. It seems to be fairly common, and the penalties nothing close to here in Ontario.

Of course, I would never drive without insurance. But what are some legal ways to get around avoiding the outrageous insurance? I need a car.

What kind of arrangement would be best if a friend were to insure?

 

[FTWWTF]

Best way is not to get tickets, and dont get in any accidents.

 

[New Guy]

Not a good idea to try and be 'ever so clever'. If you created the situation that gave rise to the higher premium then take your lumps and pay it.


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[stinkynuts]

$6000 a year for 3 years is $18000. That is enough to buy a car! I would rather buy my friend a car, and have him insure it. He pays the insurance for me every month for three years. At the end of the three years (let's say he pays $7000 for three years, he gets to keep the car. We both profit.

 

[Malibook]

The insurance companies have seen it all and they are not stupid.

While this scheme may get you through your next ticket stop, you will essentially be driving without any coverage.

 

[LateComer]

$6000 a year for 3 years is $18000. That is enough to buy a car! I would rather buy my friend a car, and have him insure it. He pays the insurance for me every month for three years. At the end of the three years (let's say he pays $7000 for three years, he gets to keep the car. We both profit.

You friend would be taking a risk. If you got into another accident, his insurance would go up. Renting a car as you need it is probably the most practical (and legal) option.

 

[Questor]

I was going to suggest selling your car, but you said you need a car. So make changes in your life so that you don't need a car...move closer to work, change job, etc.

I know that's not the answer you were looking for, and I'm not trying to be a smart ass, but you might like your life a little more if you weren't so dependent on a car. And you'd save a pile of money.

 

[wetnose]

I know a friend who changed his mailing address to his aunt's address in Goderich, then used that address to apply for insurance. Saved about $500...but that was some years back. Don't know if the insurance companies wised up to it, but I wouldn't know how.

 

[nottyboi]

When you add the cost of a car and 6K for insurance.. I don't see how you cannot be ahead by taking cabs just about everywhere...

 

[groggy]

Or try autoshare for when you really need a car.

 

[TheDr]

You realistically have 2 options, pay the price or stop driving. Driving a clunker insured for just liability only will reduce your premium.

Having a friend buy and insure a car, or changing your mailing address to somewhere you do not live and keep the vehicle will have much bigger ramifications than your current situation. When they find out, the insurance company will more than likely cancel the policy for non-dislosure, and this will also follow your friends insurance record if you choose that path. If there is a claim involved they would probaly deny it. If you thought it was difficult and expensive to get insurance now......

Stopping driving and using rentals when you need to is a useable option, but there will be no insurance history, unless you have an accident in the rental.

 

[rhuarc29]

I thought of having a friend buy and insure a car for me that I would use.

Not sure how this would work. If you aren't listed on the policy, the car won't be insured when you drive it. If you are listed as the principal driver, but the policy is under his name...you might get a better rate than $500/mo., but it'll probably still be extremely high, and he's on the hook if anything happens under your watch.

Plus, if you're expected to pay $500/mo., it's most likely because you're high risk. So finding a way to pay less would be screwing over the insurance companies (no complaint from me there).

Another thing is to simply rent a car when I need it.

Here's the problem with that one. Since you have no other insurance policy, you would be forced to pay your right nut to take out insurance from the rental company...or go without insurance, in which case you might as well use your own car. To be honest, I think rental company insurance only covers damage to the vehicle, not liability, but someone would have to confirm that. Whenever I rent a car, I have to hand over my insurance information. Unless you're renting from Joe's Junkers, I'm not sure you could even rent a car without insurance.

I heard there are also many people who use fake insurance cards (not that I would do that). It seems driving uninsured is better than having fake insurance, since you will not be charged with a criminal offense (fraud), and "only" face a fine of $5000.

In the States, I knew people who drove without insurance. It seems to be fairly common, and the penalties nothing close to here in Ontario.

That's why I'm glad I live in Ontario, where people get what they deserve (for the most part). Glad to see you are against driving uninsured.

But what are some legal ways to get around avoiding the outrageous insurance? I need a car.
What kind of arrangement would be best if a friend were to insure?

Getting your friend to take out a policy with you listed as the principal driver is your best bet. But you're still going to be paying an outrageous amount most likely. Also, keep in mind that you could really screw over your friend if your driving habits remain the same.

Good luck!

 

[rhuarc29]

Plus, only rent when you need it. You can rent a car, for about 600 $ a month. That is 7200 $ a year. You only pay for gas. No insurance(since you will use your credit card insurance), no service, no wear and tear (just gas you pay for) and the monthly rent. You may get lucky and even get a better deal. If you get a smaller car.[/B]

As far as I know, credit card insurance for rentals only covers physical damage to the rental vehicle, same as the insurance you can get at the rental company. You still need liability insurance.

 

[Riotman]

Wow,i drive a $160k car and pay $150 a month. What did ya do?...

 

[HOF]

Stinky are you Nuts?

1. It doesn't matter when you decide to get your own insurance; it will still be at a high risk rate. Insurance companies always find out.

2. You and your friend would be committing a crime. Do you like your friend?

3. Take collision off of your vehicle.

 

[Riotman]

I drive a 10,000 $ car and i pay 260 a month. I didnt do anything except being a good boy

?

Not sure if this is a joke or not but i drive a 2008 Benz SL55 AMG and pay full coverage,$150 a month with State farm. My wheel's are worth 10k. This doesn't make sense.

 

[alexmst]

Perhaps you could hire your friend to be your chauffeur and drive you around?

My insurance is 2400 a year. What did you do exactly - too many speeding tickets, or too many accidents?

If your friend has a car that is insured, and you don't live at the same address, I think he can lend you his car occassionally to drive and you'd be covered under his policy. However, if you get in an accident the insurance company might investigate to see how often you were driving his car. Not sure what the fine line is between borrowing a car occassionally from a friend down the street, and avoiding getting insurance at high rates by being the primary driver of a car insured by somebody else. If they discovered you bought him the car and pay his insurance just to avoid getting your own insurance, and that you drive 'your' car every day... they may not like that very much.


December 16, 2008:

While you can allow any driver with a current, valid driver's licence to borrow your car, it is your auto insurance policy that will provide coverage should there be an accident. Even if the person has a car insurance policy of their own, if they are driving your car, you are responsible; if they are in an at-fault accident, the accident will go under your insurance history and your insurance rates will likely go up.

In effect, when you lend your car, you lend your insurance.

Leaning towards lending?

According to the Insurance Bureau of Canada, the person you are lending your car to will be covered under your policy if:
•You have given permission to the person borrowing your vehicle.


•The person borrowing your vehicle is a licensed driver who is legally allowed to drive in the province.


•The person borrowing your vehicle does not use your car regularly. If, as part of a regular routine they use your car he or she must be named as an occasional driver under your insurance policy

 

[Gator3x]

Stay on the legal side of this, or else you may be permanently on the wrong side.

Have your broker shop around for the best insurance rates, maybe even possible to get a 6 month term to help you out and then renew.

Ask the Broker if a Driver's Course would help your rates, money well worth spent.

We are creatures of habit, you have to look at yourself and change your habits that got you into this problem. It takes at least 6 years to get your rating back!

GOOD LUCK!

 

[massman]

Rental companies MUST provide liability. It is the insurance for other damage to the car that is the upsell (and often provided by your credit card).

 

[rhuarc29]

Rental companies MUST provide liability. It is the insurance for other damage to the car that is the upsell (and often provided by your credit card).

Ahh, thanks for clearing that up. Any idea why I have to present a copy of my insurance slip when I go to pick up a rental? If, as you say, liability is automatically covered by the insurance company and collision is covered under the optional agreement, what need have I of my personal insurance?