Question Oppo: Insurance

"Dwhite - Powered by Caffeine, Daft Punk, and Corgis" (Dwhite95)
11/04/2014 at 18:48 • Filed to: None

A friend of mine back home recently got her drivers license, and also recently got into her first accident and is freaking out about it. Anyways she told me that if her insurance rate goes up at all she wont be able to afford it, she then says she pays $7000 a year. I flipped a shit when I heard this, thats an unbelievable rate. Anyways I'm curious if that rate is a crazy as I think it is. Anyways shes a 19 year old girl in a no fault state, newly acquired license, drives a leased Mazda CX-5. Is $7000 a year as crazy as I think?

DISCUSSION (40)

For Sweden > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 18:49

that's cray yo

bob and john > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 18:50

that is pretty high...then again, in canada, they wanted something like 5K a year to insure my 2000 saab when I was 18, 2 years of driving.

crowmolly > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 18:50

Jersey?

Even then it's bat shit crazy. Unless her parents made her get a ton of coverage.

Dwhite - Powered by Caffeine, Daft Punk, and Corgis > crowmolly
11/04/2014 at 18:52

Michigan.

I Dont know any details of the coverage. But when I was 17, with another 17 year old on the car as well, insurance was only $2400. And we had a pretty solid plan with State Farm.

Denver Is Stuck In The 90s > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 18:53

I would pay 12-1400 a year when I get my license, on my own car. But thats because Im going through every Drivers ed course possible before I get my license to lower my insurance rate. But if I didnt do that, I'd pay something like 2-2500 annually on a 15 year old 4 pot beater.

itschrome > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 18:55

I dunno, I mean she leases so she'd need full coverage, add age and years driving to the mix. Seems with in the realm of not being too crazy. thats 583 a month for a new driver with a new(leased) car. I mean yeah it's crazy, but then again she did already get in an accident which means they already had to pay a claim on her. so there is some warrant to those rates.. Insurance people are not dumb everything is statistically driven math.

crowmolly > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 18:55

Are you sure she isn't telling you her parents' total policy? Like for all of their cars?

JustWaitingForAMate > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 18:57

Jesus. First car I had to insure solo was a $55k V8 and I was only playing $1600.

desertdog5051 > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 18:57

She just contributed to the stats. Rates on new drivers with new cars is about right. Tell her to buy a much less expensive/older car and insure it for a few years. She won't get a break on a new(er) car. She probably won't get much of a break anyway with the accident.

Dwhite - Powered by Caffeine, Daft Punk, and Corgis > itschrome
11/04/2014 at 18:57

The bigger issue is that the $7000 a year was the pre-accident rate. Thats whats really freaking her out.

Little Black Coupe Turned Silver > itschrome
11/04/2014 at 18:59

No, it's crazy.

Female, had full coverage on my car because it's my baby, and I don't remember ever paying more than $200 a month before I turned 25. And I had an animal-caused accident on my record.

Arben72 > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 19:00

For that kind of car that is way to high unless she has some reckless driving or dui's under her belt.

itschrome > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 19:00

I mean not to be that guy but maybe she should have driven a bit longer in a shitty car before running right out after getting her license to get a new car. cheaper rates and who cars when you smash into something with it. I get her freaking out an all, but first world issue big time here. haha and yes her rates are about to go up!

itschrome > Little Black Coupe Turned Silver
11/04/2014 at 19:02

new car? full coverage? did you wait a while before getting your license? there are several variables at play here that would affect her rates? Also premium brand insurance or "shit, you need insurance we got you!" brand insurance. if she has state farm,farmers, nationwide or something like that $$$$$$ if she has progressive or like the general or something, yeah thats crazy

Dwhite - Powered by Caffeine, Daft Punk, and Corgis > itschrome
11/04/2014 at 19:03

Thats what I recommended, but their family didnt have the cash to put down to buy a used car so they leased new.

itschrome > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 19:04

no cash down on a lease? ok yeah then the dealer probably made her get like 110% insurance on that car. my co-worker just did that shit and he's almost 30, has a clean license and has been driving since 16. He pays around $400. so imagine a fresh driver, no cash and less than a year on the road. no longer that crazy is it.

jsn081 > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 19:05

Holy crap! My highest rate ever was $2200 a year in 2004 as a 23 yr old guy with full coverage on a 2003 350z + 2003 Kawasaki 636 + renter's insurance in NoVA

Little Black Coupe Turned Silver > itschrome
11/04/2014 at 19:11

I got my license at 14, it was spotless until I hit a raccoon at 20. Car was a year old when I got it, and is known for being crashed by 16-year old boys. I still pay more for it, a 2006, now than I do for my 2012 daily driver. Both of my cars have the same level of coverage, and the 2006 is listed as my secondary vehicle. I have State Farm.

AthomSfere > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 19:12

This makes no sense, at all... They can't afford $2-5000 for a car (which they knew was going to come what, 19 years ago?) but they can afford to lease a car and insane insurance?

JQJ213- Now With An Extra Cylinder! > itschrome
11/04/2014 at 19:13

Hey. Im 16 in Florida with a 2013 Leased Honda Civic, my rates are no where near that insane. Mine is under $300 a month full coverage with Allstate.

lonestranger > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 19:20

19 year old..., newly acquired license, drives a leased...

Kinja'd!!!

Luc - The Acadian Oppo > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 19:25

When I first got my license in 2001 I bought A Chevy Chevette for $400.00 when I went to insure it they wanted $8700.00/year for liability only(this was with a clean record and all). Needless to say I parked rallied the Chevette in the field and took the bus to school. About 2 years latter the goverment stepped in and put a max rate they could charge for insurance. I think it was $2400/year liability only with a clean record.

exact duplicate as this but 2 door and more rust.

Kinja'd!!!

gogmorgo - rowing gears in a Grand Cherokee > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 19:28

She recently got her license. Was that $7000 insurance while she was still on her learner's? It's typically pretty expensive to get insurance before you've proved that you actually know how to operate the vehicle (by way of the license test). When I was 17, a couple months before taking my road test, I tried to get my on her rental agreement because she doesn't like driving, but it was prohibitively expensive. I don't remember the exact figures, but it more than doubled the cost of the rental.

Also, with newer vehicles, insurance is always expensive. Last summer, I discovered that I was paying only slightly more per year on insurance for my 22 year old Manitoba-registered Jeep as a coworker was paying for his Ontario-registered 3 year old Mazda6. While insurance is typically more expensive in Ontario, he was still paying ~$500/month, vs my $570/year. The type of car makes a difference as well. My Jeep was registered as a truck, whereas my Lada (of arguably less value) costs me in the ~$900/year range, because it's registered as a passenger car, which it strictly shouldn't be (it's got few enough seats to count as a truck) but once a passenger car, always a passenger car in Manitoba. I'll be having to register it in Saskatchewan soon, and am hoping they'll let me call it a truck.

duurtlang > AthomSfere
11/04/2014 at 19:30

I was going to say the same thing. They don't have the money for a used car, so they lease a new one. With an insane insurance premium that by itself is already more expensive in its first year than the purchase price of a used older car with basic insurance.

[Insert doublefacepalm.jpg]

Denver Is Stuck In The 90s > AthomSfere
11/04/2014 at 19:33

Exactly, Why is she leasing?

AthomSfere > duurtlang
11/04/2014 at 19:39

Exactly! And this is all before we go down the rabit hole of mileage credits, accidents, depreciation, accidents, insurance spikes.

My kids are gettings Volkswagens as their first cars.

Slow

Safe

Always breaking, so they will learn maintenance and repairs!

datsti > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 19:43

wow that is crazy. when i was 26, licensed for a year and new sti it was around 2700 a year in nyc. time to shop around.

Kate's Dirty Sister > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 19:51

Pro tip : check insurance rates before buying a car

Besides, that rate seems totally disproportioned, either she's not telling you the real story (previous DUI, accident) or she didn't shopped enough.

Also, is it possible that she's going defacto with her parent's insurance company ? Some companies specialized in low risk people and have pretty good rates for them, while having pretty awful ones for people that doesn't fit their target audience.

PS9 > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 19:56

Time to ditch the new cx then, and get a 15 year old honda she owns herself with legal-minimum coverage.

I mean...$7k/year is new car payment money, and she pays that JUST so she can legally be on the road? Eff dat shizz.

deekster_caddy > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 20:32

This is why you usually don't put a new driver in a brand new car. New cars have excessively high rates for the first years, and new drivers have excessively high rates no matter what the car for a few years. Put them together... and you get bat-shit crazy rates. Leases require max coverage.

Kate's Dirty Sister > lonestranger
11/04/2014 at 20:37

what's the difference between a lease and a loan ?

thebigbossyboss > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 20:41

wtf. I was a 22 year old man with 1 accident and paid like half.

Rico > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 21:35

Girl I know has a leased 2014 Hyundai Elantra, no accidents, 2nd car pays almost $6k a year.

DrScientist > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 21:47

still... nearly $600/month insurance on a car that probably has a $300/month lease payment?

marshknute > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/04/2014 at 23:26

Unless $7000 is the total cost of her parents' complete auto insurance plan, that figure is astronomically high. Like, scam artist of the century high.

When I started driving at 16 (2008), my insurance was $1500 under my parents' plan (after a discount for taking Drivers' Ed and attending a Skip Barber driving school).

gmporschenut also a fan of hondas > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/05/2014 at 00:08

I know my cousin was at 5 or 6 after a DUI.

Sounds really high. I could understand if it was after the accident as your friend ticked nearly every box in the insurance salesman "oh shit" folder, short of being a guy.

Young driver, new vehicle, leased is more expensive would expect high but not 7k high. As kates dirty sister said it could be the company. i've heard of some states where you can't drop you so they instead just make a crazy high number to make them go elsewhere.

Does she have a $5 deductible in the event of an accident? Often that can swing insurance.

gmporschenut also a fan of hondas > Kate's Dirty Sister
11/05/2014 at 00:11

Lease vehicles are typically returned to the dealer, so all damage has to get fixed or be charged. Thus the odds of a claim are higher.

gergey - Wishes vette was Datsun > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/05/2014 at 01:06

That's insane, I nearly shat myself when I found out my 350Z was $2200 (Canadian) per year with full collision and comprehensive. Young male/sports car/"clean" driving record.

Conan > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/05/2014 at 01:35

That's really high for a girl in a non hurricane state... accident or no.

pip bip - choose Corrour > Dwhite - Powered by Caffeine, Daft Punk, and Corgis
11/06/2014 at 03:20

ripped off bad. don't renew it , drive without insurance