Car Insurance?

jacknjill

jacknjill

Active Member
Hey
Im 16 and i have my license now and the insurance went up to about $930 to add me on. Now we were expecting this, but when my parents went to go buy me a car they said the insurance would go up to $1500 just because i had a car! (it was like a 95' honda so nothing special). Did anyone else's insurance go up this much or is my company just ridiculous?
 
reefreak29

reefreak29

Active Member
Originally Posted by JacknJill
Hey
Im 16 and i have my license now and the insurance went up to about $930 to add me on. Now we were expecting this, but when my parents went to go buy me a car they said the insurance would go up to $1500 just because i had a car! (it was like a 95' honda so nothing special). Did anyone else's insurance go up this much or is my company just ridiculous?
when i was 16 i had to pay 175 a month .that was 14 years ago
 
lovethesea

lovethesea

Active Member
Originally Posted by JacknJill
Hey
, but when my parents went to go buy me a car they said the insurance would go up to $1500 just because i had a car! (it was like a 95' honda so nothing special). Did anyone else's insurance go up this much or is my company just ridiculous?

ARe they putting the car in your name??? If they are buying the car in their name and you are just a driver, I can't believe by just adding you on it went up to $1500. The car shold only be in their name........for now.
 
joojoo

joojoo

Member
Ya, make sure the car is in your parents name. I bought my car, but put it in both my dad's and my names for insurance purposes, $150 per month.
 
1journeyman

1journeyman

Active Member
Originally Posted by lovethesea
ARe they putting the car in your name??? If they are buying the car in their name and you are just a driver, I can't believe by just adding you on it went up to $1500. The car shold only be in their name........for now.
Auto Insurance varies from state to state.
Males may pay way more than females.
Driving records, home ownership, credit, age, etc. all effect policies (in Texas, states vary)
Companies also vary on how they rate it. Whose name the car is in doesn't actually matter (in Texas anyway. Here whoever "owns" the car must show insurance but that may not be who is actually driving). We (family owns insurance agency. I've worked there off and on for years) once had a client who bought a car for a friend. There friend moved to Florida with the car but the lienholder required the Texas family to keep insurance on it with friend listed as driver)
Some companies take the average risk of drivers in the household versus the average risk of cars in household to come up with a rate. Other companies assign the highest risk driver to the highest risk vehicle.
To add you to the policy increased the rate because you became a rated driver on the existing policy ($900). The premium went up again when you looked at adding a car because now you were talking about not just adding you as a driver but also adding another vehicle.
Hope that helps.
 
demartini

demartini

Active Member
I pay $2000 a year :( ...tickets are really bad!!! the insurance jumps way up every time I get a ticket... I drive like an old lady now.
 
rylan1

rylan1

Active Member
Ya that stinks... However you may be able to get this down, but you will have to avoid accidents and tickets, while having an older car. Many insurance companies do have special discount programs for good grades and etc... ask your agent about these and have your parents research other companies. For the cost of the car and insurance it may not be neccessary for you to have full coverage. You may only need liablity and medical coverage. Biggest factors on insurance is your age and ---... Young males pay the most. Just remember to be careful and avoid tickets because at your age you'll either get dropped from the coverage or it will sky rocket.. And make sure the car is in your parent's name..
 
bayside

bayside

Member
you guys dont even want to know what it cost me, a 22 year old male, for full coverage on 4 very high end cars and a dunebuggy built off of a 69 VW bug (not the safest car ever made to say the least :hilarious ). then you add a few tickets and well the end result makes me cringe every month.
 
1journeyman

1journeyman

Active Member
Originally Posted by bayside
you guys dont even want to know what it cost me, a 22 year old male, for full coverage on 4 very high end cars and a dunebuggy built off of a 69 VW bug (not the safest car ever made to say the least :hilarious ). then you add a few tickets and well the end result makes me cringe every month.

Hehe, I had a 17 year old guy come in my office a couple of months ago. He had 3 at fault accidents as well as 4 tickets, including "racing" on his record. His quote was over $6000 every 6 months, LOL.
 
tx reef

tx reef

Active Member
Farm Bureau does not use credit scores as a factor for insurance quotes.
The fact that any of them do is crap. My mom (who is 45) has only had 1 ticket in her life. She was paying $220 every six months for full coverage. When her insurance company started using credit scores to help determine rates, hers went up to $375 every six months. That is crap....she is paying almost as much as I do and I am 26 with an '04 Mustang.
 
1journeyman

1journeyman

Active Member
Originally Posted by TX Reef
Farm Bureau does not use credit scores as a factor for insurance quotes.
The fact that any of them do is crap. My mom (who is 45) has only had 1 ticket in her life. She was paying $220 every six months for full coverage. When her insurance company started using credit scores to help determine rates, hers went up to $375 every six months. That is crap....she is paying almost as much as I do and I am 26 with an '04 Mustang.
It's all about statistics...
Some states have banned the use of credit scores. This leads to companies refusing to write in those states. Which means you end up paying more to the State Fund or companies that will write in your state.
Remember, insurance companies are for profit... If your state requires you to have insurance to drive then they have a state "pool" to get insurance from (and trust me those rates are fun to pay).
 
jovial

jovial

Member
What statistics are used to justify higher insurance rates for someone who has had their credit destroyed due to identity theft or divorce through no fault of their own. How is a credit score corralate in anyway to how safe of a driver someone is, makes no sense to me. Using credit ratings to raise rates is another insurance skam IMO.
 
reefreak29

reefreak29

Active Member
Originally Posted by Jovial
What statistics are used to justify higher insurance rates for someone who has had their credit destroyed due to identity theft or divorce through no fault of their own. How is a credit score corralate in anyway to how safe of a driver someone is, makes no sense to me. Using credit ratings to raise rates is another insurance skam IMO.
yep alot of things dont make sence , like charging someone 25 bucks for a bounced check, they didnt have the money in the first place :notsure:
 
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