View Full Version : Outrageous car insurance rates.
January 22nd, 2004, 7:23pm
Anyone else out there being screwed for car insurance for nothing else than having bad credit. I drive a 1990 buick century with only liability insurance. I am a 38 year old homeowner and have never had a ticket, accident, or any claim whatsoever and pay $120.00/month. I have a friend with 2 DWI's on his record and he pays less, can someone enlighten me???
January 22nd, 2004, 7:51pm
Have you gotten other quotes? Try Esurance.com. Can't say for sure that it will be less, but worth a try. Also, the less vehicles you insure with one company, the more you pay. Our rates are lower because we insure 5 vehicles, so we get multiple vehicle discounts. A lot of companies give quotes over the internet, check around.
January 22nd, 2004, 8:13pm
I just went through this process. I'd rather swim in a shark tank. I had to find new coverage as my ins. co. decided to sell itself, and all policies have to be written as new. Well, I had a collision which is on record until March. And then, I have No credit record whatever. I don't have credit cards, and I own my home, but that doesn't count, you have to own credit cards! My late husband had all the cards in his name/ownership, and the ins. of course. So, now I am being penalized with higher ins. rates.
This credit check problem is also affecting my getting a job. The Credit bureau had several hits on the record that were not from ins. companys, but more likely from places where I had applied for jobs.
Best thing I can suggest, is shop around. They give consideration for weird things, like what school I graduated from. I'm thinking also, the rates vary on your zip code. And you won't always get the same quote from the same co. twice. There was so much difference in the various quotes, almost 60% difference in some cases higher than my previous ins. with the same coverage.
Oh, with some companies there is a Huge Difference on frequency of payment. You may be paying an enourmous penalty for monthly payments, instead of annual or semiannual. Am thinking that varies with different companies.
Also, there is an online ins.quote service. I used it, but the agents whose names were referred, did not contact me as referred, so, I did not pursue those quotes.
Best of luck to you, and allow plenty of time for a frustrating task.
I'd love to find out just what circumstances affect the premium price, and how we can deal with them. Anybody in OLS who can shed a little more light on the wide variance in quotes amongst companies?
January 22nd, 2004, 8:48pm
I can understand exactly where you're coming from!
I have a clean record, and my husband has a 4 pt ticket on his record.
Our insurance is 260.00/month. :worry:
January 22nd, 2004, 8:59pm
I just went through the same thing a couple months ago. I've been driving for 23 years, and never had one claim. My insurance went up quite a bit. Luckily a friend of mine recommended a lady who searches for the best price for my needs and record. She found a company from out east who just opened up an office locally, and I'm saving $200 a year! Good luck to all of you who need cheaper insurance!! .....oh, one more thing as long as we're on this subject. One thing that really bugs me about living in Wisconsin, is it isn't a law to have car insurance. That just bugs the crap out of me!!! All of us who have been paying for insurance for all these years have to make up for all of the people who think it's ok to drive without it. IMO, there should be some kind of penalty if you're caught driving without it.
January 22nd, 2004, 9:19pm
After reading this thread I consider myself lucky to have USAA. I only pay 130.00 a month and that's for 2 trucks a van and a horse trailer. My son is also on my policy and he's 20.
We had American Family many years ago and got taken for a ride big time.
I'd sure check around for other rates. That is crazy! Good luck.
January 22nd, 2004, 9:40pm
we pay 110 a month for the minimum that florida requires.. 2 cars covered and hubby has had some infractions.. Geico rocks
January 22nd, 2004, 10:03pm
There are several things that could be affecting your rates that you might not have thought of. If your car is on the list of "frequently stolen" cars the rates will be higher even if the car is older. A lot of crooks target older cars and chop them and sell the parts. Another thing could be the area you live or work in. If this a an area with high car theft rates, that will also make them charge you more.
I would be calling all the ins companies in your area and do some searching online. Tell the agent at your current company that you don't want to pay more for your credit rating not being perfect and are willing to switch if they don't adjust the rate. As long as they have been getting paid on time, you might be able to fight it. Good luck. Be ready to change companies--you will most likely have to.
January 22nd, 2004, 11:25pm
wow, makes me appreciate my husbands insurance company even more. We pay just over 200 every 3 months for 2 vehicles one full coverage with DH under 25.
January 22nd, 2004, 11:34pm
We pay 108 per month with progressive...that's 2 vehicles with minimum that florida requires, one's a 96 and ones a 97 model....I have 2 pts on my license for a speeding ticket in Ala dam bama...( disgusted I got caught :halo: ) :laugh:
As for how insurance companies operate, they have strange rules...I tried to call Progressive to see what a policy would cost for my stepson who lives in Texas.....the man on the phone said I could NOT request a quote for him, he had to do it himself. Some strange insurance law....
January 23rd, 2004, 12:06am
That actually makes sense to me. He may have accidents or tickets you don't know about and that does affect your quote. Some places require a milage on vehicle *which you may or may not know* plus other sorts of info you may not have.
January 23rd, 2004, 12:29am
I guess I'm in the same boat...right now I only have liability on my car and it's costing about $80 month. Once I put the new KIA on it will shoot up to $200.00 a month for full coverage. Clean record, except for the deer that hit me. Guess I better go shopping around, policy ends in April. :worry:
January 26th, 2004, 11:14pm
I was on one policy with Safeco since I started driving. It was my parents insurance company. Our insurance agent always found us the best rate BUT Only with those he had access to. I drove a 1976 Plymouth Volare, liability only. About $80 a month. I bought a 1997 Toyota Corolla in November 2002, and had to get full coverage since my car is being financed. With Safeco it was about $180 a month. (I'm under 25, have ok credit, and had a small speeding ticket 6 years ago, but it was still on record as it was in the last 5 years at the time I bought my car...) Anyway, I shopped around. Ended up going with State Farm at about $105 a month. $75 a month savings!!!!! I went to Progressive.com to compare rates. They gave me several options. I then went to the best companies, and did an online quote through their own website just to verify the rates. Hope this helps!!
January 27th, 2004, 6:52pm
Yeah, I was getting screwed too. I was paying $192 a month for a 95 Honda, with no points on my license. :(
January 28th, 2004, 12:38am
May want to consider your deductible amount. If you can handle the risk it should lower your payments.
January 28th, 2004, 12:43am
I dont know~sorry! But I do know that my car is 10 years old, I havent had a ticket for over 10 years or anything to that effect, and I still pay around $100/ month. :worry:
I do have rather high coverage, however, for bodily injury, because my only sibling died in a car accident years ago. (Cars still freak me out, knowing what they did to my brother and my family.) :cry:
January 28th, 2004, 9:15am
My home owners insurance and my car insurance have both been sky rocketing. Farmers insurance is claiming my credit as the reason. However the homeowners is paid out of an escroll account and the car insurance has was paid on time accept last time 2 days late and we didnt drive the car until it was paid. (I have a company car so thats np)
As for the car insurance, the bill came last week and they want the 6 month payment in full $498!!! on the 14th of Feb well I get paid on the 15th (Once a month I might add) Before they let me split the payment into two payments.
So here is my question regarding insurance/agents. I use the agent my family used for as long as I can remember. What can an insurance agent really do for me? Is it better to go to a broker where they have access to more than i company? or is brand loyalty better keeping house and car with one company?
Last year they claimed all the 9/11 costs for the reasons for the escalating cost. Im just NOT buying it any more. Ive had no claims on residence in the 6 yrs Ive had the home. No tickets no car claims in 10 yrs and someone rear ended me but they had good coveraged and my isurance didnt have to payout. So what am I missing? :sherlock: This whole thing is really starting to feel like a scam!
ok Im done for now. Thanks for letting me barge in on your vent to rant and rave
January 28th, 2004, 11:14am
My mother's friend worked for AAA for many years. Her advice was shop around for insurance about every 3 years. Most companies sock it to customers who have been with them for quite awhile. She said most people don't question it. Also the insurance companies are really hurting from claims from 9/11 and all the bad weather the last few years. In my area in the spring of 2000, we had 2 major hail storms. One on Good Friday and another less than a month later. The KY Farm Bureau office in my town paid over $4 million in claims alone for those 2 incidents. Our homeowners went up a little, but not like some friends. My car insurance covers my 95 Ford Contour and my DH's 2003 Chevy Blazer, liability on mine and full coverage on his. We pay $170 a month. Not bad, but it will drop again with a mutlipolicy discount next month, when we add our motorcycle insurance. We also have 2 life insurance policies with this company. Our full coverage on the Blazer is full tilt, with towing, rental, etc. Shop around and you can save big bucks. We were paying almost $300 a month with Geico before I switched to a local insurance rep from ANPAC. Good luck!!
January 28th, 2004, 12:16pm
I agree with checking around for different quote for car insurance. I had a 1996 Explorer and had excellent full coverage insurance and my payments were $122 a month(with rather high deductibles), which isn't bad considering I have a small accident and a speeding ticket on my record. Plus I am 23 yrs old. Anyhow, I got rid of the Explorer as it was costing too much in repairs. Each week something else happened which needed fixed. So my grandmother signed for a brand new car in her name and has the new insurance in her name but with me added on. Again we have full coverage with $50 deductible for comprehensive and $500 collision. She has a 1990 Buick and I have a 2003 Saturn Ion 2. Total payment each month is $155 and this is with me being 23, a speeding ticket and an accident. Seeing this thread got me thinking maybe I should check online quotes just to see. Well..Geico quoted $1570 PER 6 months!! Thats over $3000 per year! YIKES! The others werent much better. Guess I'll stay with what we have. Hope you find an affordable rate! :cool2:
January 28th, 2004, 2:48pm
I have GEICO and they are the best. I have a brand new car, (has to be fully insured for everything) and a 1995 Saturn. I only pay around $135.00 month. Plus, I filed bankruptcy. It also depends where you live, i.e., city, rural, etc. I know when I moved, my insurance rates went down a lot. So for two cars, plus roadside assistance, etc. - $135.00 a month is awesome!!!
January 28th, 2004, 9:00pm
count me in 1996 buick 1 speeding ticket nothing else no accidents or anythin on record 2,100 oer year over 200 a month
January 28th, 2004, 10:19pm
Argh, typed a whole reply, then my log-on timed out :frown4:
Ok, so I've mentioned elsewhere I'm a long time employee of one of the major car insurers. I'm not in sales, but have a pretty good grasp of what goes into rates. Here's some food for thought:
Every insurer has a "profile" of what their preferred customer is. Profession, location, credit, customer loyalty, driving record - they all factor it in, but each company weighs those items differently. USAA is an obvious one, they love military folks. But all companies have preferences, it just isn't always quite so obvious.
So DO shop - and shop again any time your life circumstances undergo a major change. But don't assume insurers stick it to folks who stick around. In fact, the opposite is more often true. They make their bread and butter off loyal customers, and most companies reward that accordingly.
Just about all companies check your credit these days - but it's the whole ball of wax for some, just one more factor for others. You don't know if you don't ask.
Most companies give a large discount for insuring multiple cars. And for insuring more than one product with them (car, house, boat, motorcycle, etc.) Other standard discounts to ask about: good grades, defensive driving courses, car security equipment, professional association memberships. Or just ask "what types of discounts are available?"
If you are going to pay high premiums right now no matter who you choose, be sure you ask companies how soon you can work your way out of that. They should be able to tell you what their plan is for reviewing you for "step-ups". $50 saved now may cost you hundreds in 5 years, if you don't ask. Some companies are MUCH quicker than others to reward you for a spotless record.
Location, location, location. It's as true for insurance as real estate. if you're moving soon, or buying a home, get quotes on 2 or 3 zip codes, it may make a significant difference.
Same with a new car - get quotes first. It's shocking how much some companies hate certain car models.
If your age is creeping up on you, be sure you know if your company gives you a guaranteed renewal plan. Nothing worse than paying insurance for 30 or 40 years without a single accident, only to be dropped flatter than a pancake at 65, after your first accident.
ok,ok, that was more than a little food for thought :laugh2: Hope it helps.
January 28th, 2004, 10:48pm
My best friend on the planet is an insurance agent. We actually had this conversation not too long ago.
Hubby and I are 38 and 41. No tickets for the past 13 years, no claims. We have full coverage and Ohio liability requirements on our two cars-2000 Buick Park Avenue and a 1999 Plymouth Grand Voyager.
We pay 91.44 a month - we are also getting a discount for having our home insurance rolled into it- and another discount for having the payment deducted from our main checking acct every month.
Before people start throwing darts at me...here it comes...
My friend said that in the past 2 years, insurance companies have taken credit scores into the computation process. Apparently it is like this:
FICO score over 700+ (like us) lowest risk percentage
650-699 average risk percentage
600-649 Medial risk percentage
Below 599-high risk
She says that they use a formula to calculate risk by using what your credit score is-she says the industry thinks that if you pay your bills, you are a more careful driver.
Don't get mad at me, that is what she said. Luckily we have a high score, so I guess that is why, with our good driving record as well, that we get a good deal.
What I am saying, is maybe some folks are unaware that this happens?
Also, you become a higher risk if you switch companies often. Sometimes the shopping around and trying to save can cost money. We have been with the same company for 9 years.
She also said that where people live affects the cost. All companies use a loss grid to track losses claimed in certain areas.
So like I said, don't shoot the messenger, I am just passing on some insider info I have received..... :)
January 30th, 2004, 9:36am
I hate car insurance. Way too overpriced.
February 1st, 2004, 9:15pm
That sounds outrageous! I go through my credit union (the company I'm insured by is Liberty Mutual) and I pay $121/month for FULL COVERAGE on two vehicles . . . plus the extras like towing, car rental, etc! Look around
February 1st, 2004, 9:26pm
shopping around for the best price is not a bad idea.
A website that helps is www.Lowermybills.com ...I can't say that I have used this site yet for auto insurance but have saved money on the phone bill!
February 2nd, 2004, 7:41am
With 5 drivers & 3 cars, our insurance was high but I called around & AIG was the best rate. they are saving us $200.00 a month & are $175. cheaper than the quote I got from GEICO. Plus remember that GEICO has the worst response record in the insurance industry!
February 2nd, 2004, 11:01am
I agree with others when they say SHOP SHOP SHOP. I had to change car insurance a couple years ago because ours went out of business or something like that. I spent 2 weeks comparing rates on about 25 different agencies. I can't believe the DIFFERENCE in prices for the same information. Progressive & Geico were absolutely OUTRAGEOUS. My husband and I have no had any claims in YEARS. I mean maybe 10 years.....it's just unreal what companies feel they can charge for car insurance.
Since all of that, I'm on my own and have a 2001 Durango. Full coverage for me alone through my current carrier is about $940 a year.
February 4th, 2004, 4:28am
We used lowermybills.com and cut our car insurance in half! I never even questioned it, but we moved to another state and the company we were with (geico) increased the monthly payment. I talked my husband into shopping around. (he resists any change :halo: ) I couldn't believe that we could have been saving so much money! The company we are with now does check credit. I do not think that is right. My mom's insurance is super high because she had some medical bills a few years ago and fell behind on bills. I'm sure most people understand. I couldn't believe it when the insurance company told us that they had to do a credit check and that they would decide then if they would even cover us. What does credit have to do with driving? If you lapse in payments, your coverage lapses, too, doesn't it? Definitely shop around.