For those of us in the USA I have a beef with the car insurance industry.
- Thread starter JCE
- 59 comments
- 1,804 views
- 3,603
IF I were to pay for my own insurance, I would be paying just slightly more than my dad.
I'm the principal driver of a '95 Neon 4-door. I'm on his insurance, and he's paying some $98 a month for me, where if I had my own policy on the same car I would only be a few dollars higher, like around $100 or $105. (As it stands right now, I'm just paying him back because he doesn't want to pay the rediculous fees for new plates).
The best part is that I'm still on a restricted liscence (appropriately called the 'N', for new drivers"), and I've already got 10% off the ordinary policy price, because I've got 2 years driving under my belt incident-free. The most I can possibly get off is somewhere in the 40% range, but that's after quite a few more years.
Insurance, the one thing I do like about our government in BC (Regulated insurance).
I'm the principal driver of a '95 Neon 4-door. I'm on his insurance, and he's paying some $98 a month for me, where if I had my own policy on the same car I would only be a few dollars higher, like around $100 or $105. (As it stands right now, I'm just paying him back because he doesn't want to pay the rediculous fees for new plates).
The best part is that I'm still on a restricted liscence (appropriately called the 'N', for new drivers"), and I've already got 10% off the ordinary policy price, because I've got 2 years driving under my belt incident-free. The most I can possibly get off is somewhere in the 40% range, but that's after quite a few more years.
Insurance, the one thing I do like about our government in BC (Regulated insurance).
- 303
There's more than just a car's rating that factors into how much of a premium you pay. Depending on what insurance company you decide to go with, there are many, many factors that determine how much you pay and how much you SAVE.
In general, drivers under the age of 25 will have much higher rates. Drivers below the age of 25 typically have less driving experience. This is only recognized in years, and not mileage.
Points in your driving record. The more points you have the more likely you are to being a danger to other drivers. Thus increasing your likelyhood of needing the insurance company to bail you out of trouble if/when you do make a claim. To be honest, the more points you have in your driving record the less likely an insurance company will be willing to provide insurance for you. A high-risk driver yields less profit than someone who has a perfecti driving history. I do believe how the points were incured also has an effect on premium (accidents over speeding/traffic tickets, etc).
Driving a high-profile car or one that is more susceptible to theft will give you a larger premium. Doesn't matter how fast your car is, as long as it's more likely to be stolen, you're going to pay for it.
Repair cost is another factor. Parts costs and labor aren't cheap.
The area you live in weighs in on your premium, too. Cars that reside in high crime areas will have higher premiums. Having the car parked on the street or garage has an effect also.
But there are ways to save yourself some money. So try and be thorough with your agent. A car's safety features can lower your insurance (ABS, multiple airbags, alarm systems, etc, etc). Students that maintain an 80% average or better get discounts. The amount of mileage you put in the car can save you money, too. Less mileage equates to less on-road time which lessens your chances of being in an accident. So if you have a short commute, bring it up! 'Cause it can save you some money.
Also, try to make claims as you see fit. Every claim you make increases your premium. So be smart. Don't make a claim if you get a dent on your hood, unless the cosmetic really bothers you. Or if you can't afford to pay for the fix on your own. Weight out the costs of paying out of pocket VS. paying an increased premium.
Thing about the kind of coverage you want, too. You pay less for less coverage, obviously. And be realistic about your deductable. The lower your deductable the higher your premium. Set your deductable to something reasonable and save yourself some money. The difference between a $500 and $1000 (or even $2000) in deductable can be as big as $100 (or more) less per month.
At the end of the day, it's a business. Companies want YOUR money, so shop around as different companies will offer different coverage and rates.
It's there to protect you.
In general, drivers under the age of 25 will have much higher rates. Drivers below the age of 25 typically have less driving experience. This is only recognized in years, and not mileage.
Points in your driving record. The more points you have the more likely you are to being a danger to other drivers. Thus increasing your likelyhood of needing the insurance company to bail you out of trouble if/when you do make a claim. To be honest, the more points you have in your driving record the less likely an insurance company will be willing to provide insurance for you. A high-risk driver yields less profit than someone who has a perfecti driving history. I do believe how the points were incured also has an effect on premium (accidents over speeding/traffic tickets, etc).
Driving a high-profile car or one that is more susceptible to theft will give you a larger premium. Doesn't matter how fast your car is, as long as it's more likely to be stolen, you're going to pay for it.
Repair cost is another factor. Parts costs and labor aren't cheap.
The area you live in weighs in on your premium, too. Cars that reside in high crime areas will have higher premiums. Having the car parked on the street or garage has an effect also.
But there are ways to save yourself some money. So try and be thorough with your agent. A car's safety features can lower your insurance (ABS, multiple airbags, alarm systems, etc, etc). Students that maintain an 80% average or better get discounts. The amount of mileage you put in the car can save you money, too. Less mileage equates to less on-road time which lessens your chances of being in an accident. So if you have a short commute, bring it up! 'Cause it can save you some money.
Also, try to make claims as you see fit. Every claim you make increases your premium. So be smart. Don't make a claim if you get a dent on your hood, unless the cosmetic really bothers you. Or if you can't afford to pay for the fix on your own. Weight out the costs of paying out of pocket VS. paying an increased premium.
Thing about the kind of coverage you want, too. You pay less for less coverage, obviously. And be realistic about your deductable. The lower your deductable the higher your premium. Set your deductable to something reasonable and save yourself some money. The difference between a $500 and $1000 (or even $2000) in deductable can be as big as $100 (or more) less per month.
At the end of the day, it's a business. Companies want YOUR money, so shop around as different companies will offer different coverage and rates.
It's there to protect you.
- 19,706
- Alabamamania
I couldn't let that one slip away unnoticed.a6m5
There are also other factors involving an indivdual car's risk:
1) How much do parts cost, and how intricate is the car to repair? Some cars are more complex than others to repair, some automakers have or do use "legacy" parts that are cheaper to replace.
2) Some cars are deform in different ways than others when it comes to an accident; some automakers consult insurance companies while designing their cars, so as to give minimal exposure them.
And as Ghost C said, get a sedan. My '94 GS 300 is half as expensive to insure as a '94 (NA) Supra, as it tuned out. Same motor...Ha ha.
///M-Spec
Staff Emeritus
- 4,928
a6m5
He wouldn't have the good taste to buy one in the first place. JCE3000GT
Your driving record does account for something. If you didn't have the points you mentioned earlier, you would have a lower premium. Your reward for good driving is your premium going down over time. But it takes years to prove this.
I'm 32. I have an '04 BMW 330i ZHP. My wife an '05 Nissan Murano. It costs me ~$780/6 months to insure both cars comprehensively (all bells and whistles). When I was 22, I paided that amount on just to get basic coverage on one car ---one that was worth a fraction of what these two are worth.
But because I've managed to (knock on wood) stay out of trouble, my rates have dropped dramatically in the last 10 years. If I were 32 and had several claims, I'd be paying out the whazzo just to drive a minivan.
So here we have a system that rewards people who don't have accidents or engage in risky behavior and punish people that do. What's unfair about that?
JCE3000GT
I used to feel the same way many years ago. But I changed my views once I started to realize what miserable drivers most of the population is. Hell, when I look back at some of the crap I pulled in a car when I was 22, I wouldn't give myself a break.
It's too bad that certain desirable cars are saddled with high premiums because they seem to attact cretin drivers. I would pay a big premium on an STi as well and that sucks.
But I really don't feel any sympathy for people who get tickets or get into wrecks and wonder why their premiums are high.
kylehnat
I have a RWD car wearing 35 profile summer tires. I get stuck in the mountains
M
- 2,568
- we're waiting for the PS4
- fishtailrook1 (?)
a6: yeah, I saw the blasted thing after the fact, just now. I feel stupid
getting soaked is universal. this year, i was running thus first half of the year60 dollar premiums, circa 720 a year. when I got my renewal (couldn't kick my insurance over, dammit), it had dropped all the way to only $131 for 6 MONTHS. i had almost 12 years of driving under my belt and was over thirty...so I'm thinking it has to do with how many years you've been driving more than your age.
btw...does everyone BUT me simply go for full coverage? sometimes I think I'm the only one to just get liability. after all, i always end up with a vehicle that's at least 9 years old and has an average of a 140 K on it
getting soaked is universal. this year, i was running thus first half of the year60 dollar premiums, circa 720 a year. when I got my renewal (couldn't kick my insurance over, dammit), it had dropped all the way to only $131 for 6 MONTHS. i had almost 12 years of driving under my belt and was over thirty...so I'm thinking it has to do with how many years you've been driving more than your age.
btw...does everyone BUT me simply go for full coverage? sometimes I think I'm the only one to just get liability. after all, i always end up with a vehicle that's at least 9 years old and has an average of a 140 K on it
- 6,769
- Little Elm, TX
- JCE3000GT
In Texas the higher the coverage amounts the less the premium. And I'd agree a bit with the amount of years driving. But don't forget some states check the driver's credit, car symbol, and driving record. There are little actual reductions (if any) for good 0-point driving. You just get the baseline rate. They should have it for every year of 0 claims/tickets/accidents you should get a 3-5% reduction for upto a total of 25% maximum possible. Just a thought.
SouL
It's scary that no-one said this until the second page.
If you live in a high-risk area and don't have a garage, those two factors coupled with the vehicle's theft index are going to determine your insurance rates a lot more than your record and the speed of the vehicle. That's one reason why the Corvette is cheaper than the BMWs.
Obviously your record is still a large factor.
- 19,706
- Alabamamania
It depends on your state, or whether the insurance company wants to cover your car for comprehensive/collision; there's other elections like "uninsured motorist" and other things like that. Most agents just wrap everything togther for the average car; there's no worrying about what happens, you either pay if it's your fault, or don't if it's not.Sniffs
I drove my '93 Corolla with minimal insurance, I couldn't get Comp/Collision on a 10 year-old car that wasn't terribly valuable. Basically, if I crashed it, incurred storm damage, or an uninsured driver hit me, I'd have to pay it all out of pocket (or sue). But it never came to that, fortunately.
So yeah, insuring the Corolla was fairly cheap for a 29-year-old, no-ticket, no-accident driver (even in a high-theft, high-population-density market) was about $50/month...I paid about the same in insurance per month as in gas thanks to a short commute!
- 8,480
- P_Balance
My dad pays 400 bucks a YEAR for my sisters Kia.
And since Miata's have surprisingly cheap insurance, and I want one. It's all good for me. Even if it was insured on me, (I'm 15) I would still pay only around 1,100 a year.
So I can't complain.
And since Miata's have surprisingly cheap insurance, and I want one. It's all good for me. Even if it was insured on me, (I'm 15) I would still pay only around 1,100 a year.
So I can't complain.
- 6,769
- Little Elm, TX
- JCE3000GT
M5Power
I knew about the theft index. It does account for a slight increase along with the different coverages, but, in Texas the zipcode you are in is another interesting bull**** factor. Let me explain, when I lived in the zipcode 75002 my insurance was $250/mo for full coverage in my 3000GT VR4 when I was 19 years old. Then I moved to 75065 and it was $220/mo, but the real kicker is when I moved back to 75002 my insurance stayed the same. How's that for inconsistancy. When I had my Maxima I moved from 75002 with $82/mo insurance as a 25 yearold to zipcode 75075 and my insurance went to $112/mo...thing is it was only like 5 miles away...5 miles = $30/mo? I still call foul. All the good "excuses" the insurance companies use is just that...excuses. Keep in mind that Maximas are stolen and broken into slightly less than Accords around here so the "theft index" on Maximas are quite high. Oh here's another interesting tidbit, I had the oppertunity to get full coverage in my Crown Vic P71 for abouit $72/mo in 75065. But I asked how much it would go up if I moved to 75002 again and my agent says "It will go up about $50/mo"...wtf?
PERFECT BALANCE
That $1100 per year is on your parents insurance. And the same for the Kia and your sister. Just try and get those premiums by yourself--although you can't until you are 18. Try and get a cheap premium by yourself with a Miata at age 18. Won't happen. Convertables are automatically high in symbol ratings because they aren't safe. So it doesn't really count if you are listed as a driver on someone else's account...it's obviously going to be considerably less, especially for teenagers.
- 2,336
- Los Angeles, CA
- WRBWRXMAX
- Max Archer
Anyone know what the normal WRX's number is?
I pay about 5500 a year, with one speeding ticket.
It's mostly because I live in Hollywood. I looked up what it'd cost if I lived in another zipcode, it was about half of what I pay. I'm in a nice part of Hollywood, but the ZIP is the same as downtown, and there's so much crime, and so many accidents there, that it's one of the highest-cost ZIPs in the US. It's not without reason, either, my family has had several cars broken into at my house.
I pay about 5500 a year, with one speeding ticket.
It's mostly because I live in Hollywood. I looked up what it'd cost if I lived in another zipcode, it was about half of what I pay. I'm in a nice part of Hollywood, but the ZIP is the same as downtown, and there's so much crime, and so many accidents there, that it's one of the highest-cost ZIPs in the US. It's not without reason, either, my family has had several cars broken into at my house.
///M-Spec
Staff Emeritus
- 4,928
M5Power
No one said it because it's not true.
Vehicle theft is typically covered under "Comprehensive" coverage.
The majority of the cost of insurance is liability or "Bodily Injury and Property Damage". This is the money your insurance company pays out if you cause a wreck and break cars, property and people. This does NOT cover YOU or YOUR OWN car. Just stuff you are liable for (ie other people and their stuff).
To use myself as an example, it would cost me ~$285 to get minimal liablity coverage (25/50/25) and ~$350 for a high degree of coverage (100/300/100), where I currently live.
Comprehensive coverage is the money your insurance company pays out if your car is stolen or vandalized. With a $500 deductable, I pay $33.00 on my wife's '05 Murano and $59.00 on my '04 330i.
In case anyone is fuzzy on the math, it costs less than 1/10th to insure my wife's car and 1/5th my car for comprehensive than it does for liability.
Now in case you're ready to hit 'reply' and say something along the lines of "well ///M-Spec, that may be where YOU live out in the sticks, but that won't be true in a big bad metropolitan area".
Well, you'd be wrong again. My wife and I are moving to New Jersey, and my wife's Comp went from $59 to $82 while the comp and my BMW's actually DROPPED from $237 to $132.
Just for fun, I added a 2006 Cadillac Escalade, a prime target of car theft and a 1995 Honda Civic, the most stolen car of 2004 to my New Jersey quote to see what they wanted for comprehensive coverage on them.
Caddy: $115
Civic: $45
If someone provides me a valid street address in Modesto, CA --the nation's car theft capital-- I'd be happy to see what my insurance company quotes for comprehensive on the Civic there. I can already gurantee it won't top $350, though.
M
- 8,480
- P_Balance
I got that number from the progressive insurance quote thing online. I have no violations yet, and my grades are decent, and I would probably get the odometer discount too on a car that old. If it was insured on my dad, he would pay around 375 a year for full coverage. So, unless something on that website is going screwy, Miata's are surprisingly cheap on insurance.JCE3000GT
- 6,769
- Little Elm, TX
- JCE3000GT
PERFECT BALANCE
What's the symbol rating of a Miata? I'm curious.
Oh and tomorrow I'm going to try and ask my agent what the symbol rating of the Scion tC and Hyundai Tiburon V6 is. I may just get one of these two and upgrade the hell out of it if it's got a low enough symbol rating.
*edit*
Imagine the new Hyundai V6 stuffed in a black on black 6spd Tiburon. Mmmmm that sound delicious.
- 8,480
- P_Balance
I don't know about the Miata's rating. But, I think the reason is might be lower than what you'd expect is because you really don't see much male teenagers with Miatas. Usually they either think it's a girls car, or some old rich guy owns it. I see a lot of older guys with Miatas and Datsuns.
- 8,480
- P_Balance
Do insurance companies base their insurance prices on the symbol rating? I always though they just look at the car, the performance, the crash test ratings, the reliability, the number of doors, the ages of the people that crash them, the color. (Yes, the color. Red cars crash more.)JCE3000GT
As for the Datsun, sure you can have one, I think I have one in my pocket somewhere...........
EDIT: Never mind the color then, but a lot of people have told me it makes a difference.
- 6,769
- Little Elm, TX
- JCE3000GT
Added two more today. The tC would be $5.00 more a month than my Focus...so I think we might have a winner? I really like the Tiburon and it's got a decent symbol rating...but for 1 more point and ~$10.00 more a month insurance I might as well get a GTO or Corvette, eh.
Hell since the tC is so cheap to buy new anyway I just might get a used '05 with low miles (manual transmission). Plus being a Toyota it's practically bulletproof...and has a huge aftermarket whereas the Tiburon V6 doesn't. I'd rather have the Tiburon...but I just can't see me getting one unless I find one real cheap...which Hyundai is known for it's low resale value. It'd have to be $10k cheap before I'd get one. And that probably won't be possible given the low mileage need I have. But there's a good Hyundai warranty to consider...
- 2005 Hyundai Tiburon GT V6 = 18
- 2005 Scion tC = 14/15 (different numbers, one for supercharger?)
Hell since the tC is so cheap to buy new anyway I just might get a used '05 with low miles (manual transmission). Plus being a Toyota it's practically bulletproof...and has a huge aftermarket whereas the Tiburon V6 doesn't. I'd rather have the Tiburon...but I just can't see me getting one unless I find one real cheap...which Hyundai is known for it's low resale value. It'd have to be $10k cheap before I'd get one. And that probably won't be possible given the low mileage need I have. But there's a good Hyundai warranty to consider...
- 2,568
- we're waiting for the PS4
- fishtailrook1 (?)
a little woohoo against the whopper auto insurance companies
Progressive is in the middle of a class-action suit. anyone on progressive between certian dates in 97-01 who had their policy terminated are eligible to participate. it seem that progressive terminated peson's insurance coverage with them after looking at a person's Credit Score instead of their driving record. at least, that's what I'M getting out of it. hopefully, my paperwork didn't get canned.
Progressive is in the middle of a class-action suit. anyone on progressive between certian dates in 97-01 who had their policy terminated are eligible to participate. it seem that progressive terminated peson's insurance coverage with them after looking at a person's Credit Score instead of their driving record. at least, that's what I'M getting out of it. hopefully, my paperwork didn't get canned.
- 434
one thing i hate about insurance companies is the 45 or 50 dollars they charge to add vehicles. my dad used to drive his truck when he had a job (contractor) and a 92 volvo 240 when he was not so he transfered quite a bit.
i wish insurance cost less for me, my cars have all been under $425
i wish insurance cost less for me, my cars have all been under $425
- 21,286
- GR-MI-USA
- YSSMAN
- YSSMAN
JCE3000GT
Well, if my '96 Jetta Wolfsburg is a 14 and the '96 Miata M-Spec I was looking at was a few bucks cheaper to insure with the same ammount of insurance placed uppon it (full-coverage), thus I would belive it to be either a 13 or a 14. But I'm not completely sure.
...Things may be different here in Michigan...
- 21,286
- GR-MI-USA
- YSSMAN
- YSSMAN
Even more strange was the fact that the '97 GLX VR6 that I almost bought was rated as a 19 at State Farm, and I have yet to figure out why. Yes, it was as fast as the 325i at the time and parts are expensive, but a 19?
So we jump from 14 on the GL Wolfsburg to 17 on the GLI and all the way to 19 on the GLX? I assume that is sort of cross-referencing MKIII and MKIV models, but that is still very strange indeed.
So we jump from 14 on the GL Wolfsburg to 17 on the GLI and all the way to 19 on the GLX? I assume that is sort of cross-referencing MKIII and MKIV models, but that is still very strange indeed.
- 6,769
- Little Elm, TX
- JCE3000GT
Well, throw all of this out the window for now. I've decided to sell the Focus and get something older and used...and less than $3000. I need to not have a car payment and such a high insurance premium. So here's the cars I'm watching on ebay. I'm spending most of my effort finding a Nissan Maxima, Mazda 626, or believe it or not *gasp* a GM product or two. I might sell the Focus as soon as Saturday or Monday. Oh, and unless you have a non Dodge/Chrysler product that's within 150 miles of zipcode 75065 and costs less than $3000 please don't post a suggestion. I'm not opposed to Honda, I just can't find any that are in my price range that aren't too old.
Here's the list of most of the cars I'm watching on ebay:
http://cgi.ebay.com/ebaymotors/ws/e...m=150004749755&ssPageName=STRK:MEWA:IT&ih=005 <-- Basically a Toyota Corolla...got some insane gas mileage
http://cgi.ebay.com/ebaymotors/ws/e...m=180004784062&ssPageName=STRK:MEWA:IT&ih=008 <-- Good looking older Volvo--Svenska tanks are awsome
http://cgi.ebay.com/ebaymotors/ws/e...m=290004556675&ssPageName=STRK:MEWA:IT&ih=019 <-- RWD and V8...no need to say anymore
http://cgi.ebay.com/ebaymotors/ws/e...m=220004232291&ssPageName=STRK:MEWA:IT&ih=012 <-- The best car here
http://cgi.ebay.com/ebaymotors/ws/e...m=200004860178&ssPageName=STRK:MEWA:IT&ih=010 <-- It's cheap and easy to maintain
http://cgi.ebay.com/ebaymotors/ws/e...m=220003518521&ssPageName=STRK:MEWA:IT&ih=012 <-- I like this FWD slush mobile
http://cgi.ebay.com/ebaymotors/ws/e...m=300004076705&ssPageName=STRK:MEWA:IT&ih=020 <-- I like this gas guzzling SUV
http://cgi.ebay.com/ebaymotors/ws/e...m=130004787350&ssPageName=STRK:MEWA:IT&ih=003 <-- My brother has the same car...great fun
http://cgi.ebay.com/ebaymotors/ws/e...m=200004864349&ssPageName=STRK:MEWA:IT&ih=010 <-- Cheap to buy and cheap to run with exception of gas mileage
http://cgi.ebay.com/ebaymotors/ws/e...m=260004993079&ssPageName=STRK:MEWA:IT&ih=016 <-- Obviously I want another Crown Vic P71 ... or even a regular one.
http://cgi.ebay.com/ebaymotors/ws/e...m=320004425773&ssPageName=STRK:MEWA:IT&ih=011 <-- Might be fun...but I hope I don't get a bad one...
Here's the list of most of the cars I'm watching on ebay:
http://cgi.ebay.com/ebaymotors/ws/e...m=150004749755&ssPageName=STRK:MEWA:IT&ih=005 <-- Basically a Toyota Corolla...got some insane gas mileage
http://cgi.ebay.com/ebaymotors/ws/e...m=180004784062&ssPageName=STRK:MEWA:IT&ih=008 <-- Good looking older Volvo--Svenska tanks are awsome
http://cgi.ebay.com/ebaymotors/ws/e...m=290004556675&ssPageName=STRK:MEWA:IT&ih=019 <-- RWD and V8...no need to say anymore
http://cgi.ebay.com/ebaymotors/ws/e...m=220004232291&ssPageName=STRK:MEWA:IT&ih=012 <-- The best car here
http://cgi.ebay.com/ebaymotors/ws/e...m=200004860178&ssPageName=STRK:MEWA:IT&ih=010 <-- It's cheap and easy to maintain
http://cgi.ebay.com/ebaymotors/ws/e...m=220003518521&ssPageName=STRK:MEWA:IT&ih=012 <-- I like this FWD slush mobile
http://cgi.ebay.com/ebaymotors/ws/e...m=300004076705&ssPageName=STRK:MEWA:IT&ih=020 <-- I like this gas guzzling SUV
http://cgi.ebay.com/ebaymotors/ws/e...m=130004787350&ssPageName=STRK:MEWA:IT&ih=003 <-- My brother has the same car...great fun
http://cgi.ebay.com/ebaymotors/ws/e...m=200004864349&ssPageName=STRK:MEWA:IT&ih=010 <-- Cheap to buy and cheap to run with exception of gas mileage
http://cgi.ebay.com/ebaymotors/ws/e...m=260004993079&ssPageName=STRK:MEWA:IT&ih=016 <-- Obviously I want another Crown Vic P71 ... or even a regular one.
http://cgi.ebay.com/ebaymotors/ws/e...m=320004425773&ssPageName=STRK:MEWA:IT&ih=011 <-- Might be fun...but I hope I don't get a bad one...
