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In 2004 I bought my 4th car, a 2003 Honda Civic Ex. It was used and I got a great deal on it as it was a manual.
But I paid $230 a month in minimal comprehensive insurance on that $13,000 car.
Fast forward a decade and I'm sitting on just about the highest insurance I can get, extended warranties, and two cars with a combined MSRP of $50k.
For these two cars I pay a paltry $85 a month.
Sure I'm a more experienced driver, and haven't had a ticket in a decade, but wow that's an amazing difference. And the worst of it is i could hardly afford the $230 then, but now money is the least of my worries.
Yup, I remember those days.....new driver with a 1977 Pontiac Grand Prix SJ....400 cu.in. 4 bbl....payed over $200 a month for insurance....more than the car payment was. Now, 30 years later......2 new cars at 80k+ and a nice camper.....all full coverage (if a fly poops on it, it's covered), just a tad over $100 month
Yup, I remember those days.....new driver with a 1977 Pontiac Grand Prix SJ....400 cu.in. 4 bbl....payed over $200 a month for insurance....more than the car payment was. Now, 30 years later......2 new cars at 80k+ and a nice camper.....all full coverage (if a fly poops on it, it's covered), just a tad over $100 month
I had the 1976 version.
I don't remember what exactly I paid for insurance but I switched from Nationwide to Erie because the rate was way lower ( I was 22).
I wish I knew where you guys were getting insurance, I've compared what I have now between most of the real companies (meaning not Progressive, etc.) and they're all about the same for comparable coverage-$750/quarter. That's for an F150 and Forester with full coverage and a Taurus and F150 with liability and comprehensive (for windshields) only.
I also have an 18 year old on the insurance so that has a major impact.
We recently switched to GIECO from Allstate.....saved $100 a month ....and got towing and Roadside Assistance....Allstate agent we had for 15 years never even tried to compete with pricing to keep us
I think the way insurance companies do business today has actually lowered the rates. It used to be, if you got in an accident, they'd send out an adjuster to look at it, then you'd take the car in and have it fixed. Today, they just total everything, even minor damage, buy the car from you at well under what it's worth, then sell the totaled car for parts. It costs them less to deal with it this way, so they can give you a better rate.
In 2004 I bought my 4th car, a 2003 Honda Civic Ex. It was used and I got a great deal on it as it was a manual.
But I paid $230 a month in minimal comprehensive insurance on that $13,000 car.
Fast forward a decade and I'm sitting on just about the highest insurance I can get, extended warranties, and two cars with a combined MSRP of $50k.
For these two cars I pay a paltry $85 a month.
Sure I'm a more experienced driver, and haven't had a ticket in a decade, but wow that's an amazing difference. And the worst of it is i could hardly afford the $230 then, but now money is the least of my worries.
You were probably young when you purchased your first car. The group that is between 16 to 25 years old is involved in a great number of accidents and costs insurance companies a lot of money--particularly males. Rates reflect the actual cost of insuring the group you are in plus profit for the insurance company. It is not considered essential that people drive and so there is no subsidy that makes insurance cheaper for a particular age group.
The exception to this rule are those who fall into the category "assigned risk". Individuals who have a DUI on their record or live in some particular cities would not be able to purchase insurance at all and so the insurance commissioner in those states creates an "assigned risk program". They still pay a lot for insurance, but the program allows them to have insurance with some company. If left to its own the market would not provide this group with car insurance at all.
The group that is between 30-60 experiences the lowest rates of all because usually by that age they are at their peak. They have stopped driving in a careless manner and they have all their physical senses about them.
After age 60, your rates start climbing again. They can become quite prohibitive by the time you reach age 75 or 80 and many choose to get insurance through some group like the AARP because its a bit cheaper.
The other comment I would make is that you contrast the monthly cost of insurance when you started insuring your first car ($250) with the cost of the car ($13,000). I understand why you do that. However, it suggests that your focus with car insurance is simply on property damage claims. The major claims for car insurance companies aren't property damage claims. They are claims that result in bodily injury to people. This is a major component of auto insurance premiums. In fact, your declaration sheet breaks down the individual cost for each coverage: Collision; comprehensive; property damage liability; bodily injury liability; uninsured motorist; and underinsured motorist.
I am glad though you are currently getting good rates.
Yes, I left out the 19 years old bit (on accident). a great deal of my policy's discounts are only available because of my life experiences.
I am still amazed from when I dropped off a compact car and added a minivan two days ago how my rates dropped from $120 to $85. Its bigger, but just as fast, it does have that improved traction control system, and a back up camera, but other than that it's a giant steel box that'll do more damage than my compact could have.
But surely underwriting is on the car type too, and not too many in the 18-25 bracket are driving minivans (heck even my 30 year old friends think I'm lame for not getting some oversized 4x4).
Getting married will also drop premiums. My husband and I got married at 23. My rate dropped a little, but his was almost as significant as when we turned 28 and it dropped to a similar rate to where they are now.
Don't ever move to Detroit or surrounding areas....it is unlike anything you have ever paid...totally ridiculous...
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....and got towing and Roadside Assistance....Allstate agent we had for 15 years never even tried to compete with pricing to keep us
