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#1 of 138 Help, I'm a new driver and insurance costs are giving me a heartattack..
Mar 12, 2004 (12:12 pm)
Hello I'm a new driver and I just got my license last month, I want to buy a car and start driving now but it seems insurance is holding me back. I'm 22 years old and recently got a quote from GEICO for bare minimum insurance for a 2003 Buick LeSabre and they want about 6,000$ FOR SIX MONTHS, I can't afford that.. if I take off even more coverage its down to about 4,000$ which is still too expensive.. How is a guy supposed to live when he has to pay that much for car insurance? I can't afford my bills with rates like that..
#2 of 138 Sounds to me...
Mar 12, 2004 (12:26 pm)
like they're trying to make you squeal like a pig. Any reason WHY your quote is so high? Do you have a bad driving record or anything like that?
My roommate has Geico, and I think they're ripping him to the tune of around $2300 a year, for full coverage on a '98 Chevy Tracker. About the best thing I can suggest you to do is call around. Also, don't screw around with those automated internet quotes that Geico and Progressive, and others offer. Call an office and speak to a live agent!
I could see you getting screwed for insurance if you were like 16 or 17, but by the time you're 22, if you have a good driving record, your insurance should have taken a big drop. For example, way back in 1987 when I first got insurance, liability-only, but in my own name (not on my parents' policy), my premium was $1361 that first year. The second year it dropped to $1280, then to something like $1079. It actually got down to $703 a year when I was 21, and would have gone to $653 the next year, but then I got 2 points on my record, and that shot me back up to around $969.
Your insurance should drop once you turn 25, and I think it drops again when you hit 30.
Something's screwy though, that they'd want to charge you $12,000 a year for a LeSabre!
#3 of 138 Good advice.
Mar 12, 2004 (12:48 pm)
If you call an agent, they'll look around for the best rates (doesn't cost you any more, they get paid by commission from the insurance company).
There are a lot of insurance companies who specialize in low(er) rates for high-risk or young drivers. You might also want to check with your local body shops to see who they recommend (if you're carying collision, you don't want a company that stiffs the body shops).
Also, if the car is worth less than a couple grand, collision and comprehensive aren't worth it -- just buy the minimum legal liability coverage you need.
Mar 12, 2004 (12:50 pm)
I have nothing on my record, I am 22 but just got my license last month, I'm not sure how much a difference it makes at what age you recieve your license, but even still 4,000-6,000 for six months still seems crazy. I figured the LeSabre would be good for me since it was the cheapest to insure and most safest car in 2002-03. $1361 seems like a good figure that you got.. I guess I'll have to call up and find out that way.
#5 of 138 I could see them...
Mar 12, 2004 (1:11 pm)
sticking you with a higher rate because you just got your license, and you don't have an insurance history, but still, $8-12K a year is just phenomenal! My Dad recently got a car and insurance in his own name, after not being insured since like 1984. They stuck him with a higher rate because he didn't have an insurance history, but said that after a year it'll go down.
Does Erie Insurance Group offer coverage in your area? If they do, you might want to give them a call. I switched from Allstate to Erie back in early 2000 (I was 29 at the time) and the premium for my '00 Intrepid, which I had just bought a few months before, dropped from $900 a year to about $550-560. It's going to depend on where you live though. I'm in a fairly low-risk area, but my uncle, who only lives about 9 miles away, was in a "bad" enough area that Erie couldn't give him a better deal than his Allstate agent.
Erie can also be kind of picky about what they'll insure. For instance, my roommate tried to go with them, but they wouldn't insure him at all because they said his '98 Tracker was too risky of a vehicle. A LeSabre is probably about as low-risk as it gets, though!
#6 of 138 Another factor
Mar 12, 2004 (1:18 pm)
is if you're leasing. If you are, you are often required to carry far more liability than would ordinarily be required (this is to protect the lease-holder).
#7 of 138 you don't have to have a heart attack, I did that for you ;)
Mar 13, 2004 (12:27 am)
I agree, call an independent agent and shop around. littler outfits with names like Pigslop Farmers Beneficial Mutual Insurance of Northeastern Tennesee, if they have a good A.M. Best rating so they will be around to pay if you have a claim, are going to have the lowest advertising costs and lower overhead than the guys with three tv commercials an hour. they will charge you less.
that lesabre should be very affordable to insure. but you ARE going to pay more until you are 25, guaranteed, probably twice what an old fart like me will pay, because enough kids are laughing it up with a carful while driving, and arguing with fixed objects that just lurched out of the dark at them. the fixed objects always win. and so do the insurance companies. drive carefully with respect for the power you wield, and it will come down.
#8 of 138 avoiding higher rates
Mar 13, 2004 (5:07 am)
New drivers can usually avoid sky high rates if they stay on their parents policy. When you move out, you have to get your own policy.
#9 of 138 insurance
Mar 13, 2004 (7:48 am)
I saw on your profile that you live in New York. Is that New York City? New York state in general, and the city in particular, has experienced huge increases in insurance rates brought on by rampant fraud which the state legislature refuses to correct because of the trial lawyer lobby. Still, the rates you quote are astronomical.
You will find wide variations among insurance companies in rates. Certain companies specialize in a certain type of driver in certain areas, and if you're not the type they want, they quote really high rates as a way of telling you they don't want your business.
So I would definitely shop around. I noticed one question always asked is if you have had insurance for the past 6 months. You could inquire as to whether the rate would go down after you are able to answer "yes" to that question.
Inexperienced operators, defined as driving less than 3 years, also pay more. And you are under 25 and, I presume, a male. So you're getting it from all angles.
I have a couple of suggestions if possible:
-If you live in the city, you could try to register and insure the car at an address outside the city. Even the close-in suburbs have radically lower insurance rates than the boroughs.
-If you live with your parents and they are willing, you could insure the car under their name, and list yourself as an occasional driver. This will save a lot of money. If your parents are worried about liability and they own a home, they could get an umbrella policy through their homeowner's insurance for a lot less money than the car insurance would cost you.
I hope you can work something out.
Mar 13, 2004 (7:52 pm)
>>-If you live in the city, you could try to register and insure the car at an address outside the city. Even the close-in suburbs have radically lower insurance rates than the boroughs.<<
There is a phrase for the practice. It is called INSURANCE FRAUD.
It is legal to move to a suburb with lower insurance rates. For example, if you live in Dearborn, MI, you pay lower rates than if you live in the city of Detroit.
However, if you live in Detroit and claim that you live in Dearborn to get a lower rate, that is misrepresentation,
Had a friend who was caught and it resulted in the insurer not paying a claim.