Insurance companies questions and thoughts

Ok so I got a couple quick online quotes for potential cars I am looking at purchasing when I arrive next month. From what I can see, for the type of car I want (2003-2004, saloon, 2.0-2.5L engine) the quotes seem to be in the same range. I entered in the fact that I hold a foreign license into the quote

This particular quote is for a 2003 BMW 520i ES SE 4 door saloon, using the address of a friend in Croydon, with parking was classified as "private property" (a little nook in front of the house) and came up with the following:

Reasonable:
Bell - 935gbp (Total Excess 600gbp)
Admiral - 964gbp (Total Excess 600gbp)

Extortionist:
Motor Insurance Warehouse - 3460gbp (Total Excess 650gbp)
Swinton - 3600gbp (Total Excess 650gbp)

About 20 others came up as unable to quote online:

So I have a couple questions:

1. Is "Total excess" the same deductible in America? i.e. I will be the first 600gbp of a claim and the insurance company will pay the rest, e.g. I hit a tree and cause 1500gbp worth of damage, I will pay 600gbp and the insurance company will pay 900gbp for the repairs.

2. It didn't explicitly state anywhere on the site, but I am assuming that the above prices are annual figures, not 6 months, or god forbid monthly, because I may need to look into learning to fly or something if those figures are not annual.

3. Are Bell and Admiral "good" insurance companies, or are they bargin basement cutthroats where only the Lord will help me if I get into an actual accident? I know that none of the insurance companies like to pay anywhere in the known world, but some are more helpful than others.

In America I am insured by Allstate, have been for almost a decade, in that time I have had a major accident (total loss, had to get a new car), a small claim after parking lot hit and no note left (body work on a door), and a mid-size claim after a rainy night mishap with a curb (basically replaced front right suspension, wheel and tire). I would class Allstate as a "good" insurance company, all 3 times they quickly cut checks, arranged for towing, rental cars, and got me back on my feet with minimal hassle. This what I expect from a good insurance company, but considering the fact that those two other insurance companies want to charge be 4 times as much Bell/Admiral, it makes me wonder.

In America cheapo insurance companies take anybody, but if you get into an accident they will fight tooth and nail to ensure that they help you as little as possible. The basic agreement is, "hey you are uninsurable, but we'll insure you anyway so that you can legally own/drive a vehicle.........on one condition, if you get into a serious accident, you're double screwed because we are not gonna help you much".

4. Are Bell/Admiral the latter, the former, or somewhere in the middle?

Reasonable:
Bell - 935gbp (Total Excess 600gbp)
Admiral - 964gbp (Total Excess 600gbp)

Well, I'd consider those prices extortionate as well, but then I suppose it being a late-model BMW probably makes a huge difference from what I'm used to, plus being in the London region.

1. Is "Total excess" the same deductible in America? i.e. I will be the first 600gbp of a claim and the insurance company will pay the rest, e.g. I hit a tree and cause 1500gbp worth of damage, I will pay 600gbp and the insurance company will pay 900gbp for the repairs.

You got it.  The "excess" is the amount you'll have to cover out of your own pocket if you damage your vehicle, i.e. the insurance pays the cost of repairs less the excess. 

2. It didn't explicitly state anywhere on the site, but I am assuming that the above prices are annual figures, not 6 months, or god forbid monthly, because I may need to look into learning to fly or something if those figures are not annual.

You can stop panicking!   Premiums are quoted for an annual policy unless you are specifically requesting short-term insurance.  If you want to pay on a monthly basis, they'll give you different terms for the basic premium plus interest.

3. Are Bell and Admiral "good" insurance companies, or are they bargin basement cutthroats where only the Lord will help me if I get into an actual accident? I know that none of the insurance companies like to pay anywhere in the known world, but some are more helpful than others.

It's probably debateable whether any insurance companies are actually good as such, but they've been around for a good many years and have no dubious reputation compared to any others. 

A fourfold variation in price is not at all unusual.  It really pays to shop around.  I'm going back about 15 or 16 years, but I recall getting a range of quotes once which ranged from just under £110 to over £850!

Well, I'd consider those prices extortionate as well, but then I suppose it being a late-model BMW probably makes a huge difference from what I'm used to, plus being in the London region

I suspect it's the no-claims bonus that's at work here - I remember when I had zero no-claims those were the sorts of prices I was getting.

For chadwyckp: unlike the US where you get an insurance discount for the time you've held your licence over here they discount for the number of years you've had insurance without making a claim - the no-claims bonus.  This really makes a difference to the price, at least for the first few years.

I think I remember a few posters in the past insurers to take their American driving history into account for no-claims purposes although you'll probably have to phone rather than using the web.

I suspect it's the no-claims bonus that's at work here

Good point.  Were those quotes with or without claiming any NCB on the online form?   It would be worth calling around and trying to find someone who will take your American insurance history into consideration.

Being British, I've never had the "pleasure" of having to get a quote here without a U.K. license, but certainly for anything "unusual" (e.g. driving an American vehicle here) you'll find that the online quoting sites are poor to useless, and calling around will yield much better results, especially with those brokers who specialize in such out-of-the-ordinary cases.

Thanks for the answers guys, this is exactly what I was hoping to hear.

Hiya!

As Paul and myself often recommend - give Adrian Flux a call and see if they can better or at least match the 'reasonable' quotes you've been getting. I use them for the F150 i have and even with a full no claims I'm paying more than those 'reasonable' figures! so Paul you might be still shocked at that!

Good thing with Adrian flux is they do all the specialist insurance so hopefully they'll come up good for you too Chadwyck. Also, E39 5 series now hey?! excellent! same as my daily driver! the sweetest petrol version is the 530i, the 2.5i is good too though. Diesel, and it's the 3.0 litre and a quick 'tweak' sees 230-245 bhp for not much money!
The 2.5d is also good though, not as quick of course, and that same 'tweak' sees it up to around 195-200 bhp with easy 35-40mpg economy. If you can find a manual version of any Diesels, even better economy!

Good luck !

DtM! West London & Slough UK!

Also, E39 5 series now hey?! excellent! same as my daily driver! the sweetest petrol version is the 530i, the 2.5i is good too though. Diesel, and it's the 3.0 litre and a quick 'tweak' sees 230-245 bhp for not much money!
The 2.5d is also good though, not as quick of course, and that same 'tweak' sees it up to around 195-200 bhp with easy 35-40mpg economy. If you can find a manual version of any Diesels, even better economy!

Good luck !

DtM! West London & Slough UK!

I will definitely be talking to you about an ECU remap if I purchase something of the Bavarian Motor Works variety, right now I am looking in a certain price range and looking at which vehicles appeal to me assuming all major things are covered. The particular vehicle above is a sweet blacked out version (everything chrome including the kidney grill is blacked out) with AC Schnitzer 18's, Chadwyck likes, Chadwyck likes alot.

I use them for the F150 i have and even with a full no claims I'm paying more than those 'reasonable' figures! so Paul you might be still shocked at that!

I'm with Adrian Flux at the moment (policy from Trinity Lane), and I'm grumbling because I've just received this year's renewal notice and it's gone up - From £166 to £178 (TPF&T on an '87 Ford Bronco II, full no-claim).

But as Dennis and I have both recommended in the past, Adrian Flux is definitely worth a try for "unusual" circumstances.