Car Insurance for 18 year old (car payments, first vehicle, auto, credit)
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So I plan to get my first car in a few weeks with $500 down. Car in mind is a 2003 Hyundai Accent since its the cheapest car at carmax in my area. I live in San Antonio, Texas, 18, male with no credit. All possible co-signers also have very bad credit.
On estimate, how much auto insurance would I have to pay? It all depends is different for each auto company but what should I at least expect to have to pay?
Forget it. Instead, by a car for $500 cash and get minimum liability on it. That is the far cheapest and smartest solution. I am 34, and I did that myself. I paid $500 for my 1991 Ford Escort, and I pay $38 a month for liability insurance.
if credit is an issue, and being an 18yr old male, agreed to buy a used car with no loan. The lender will require full coverage, which at your age would be very costly. Female teen drivers tend to be twice that of an adult, teen males can be 3 times the cost. Your first real drop in premiums may come at 21, but most notable at 25. And if any co-signers have bad credit, then even if you were to get a loan the interest rate also would be high. Drive the cheap car for now, build up the savings acct so when able to you can make a step up if needed
Here's the problem: IF you're able to buy a car and put it on payments, you have to carry full-coverage insurance - which includes comp & collision. I'd guess that the cheapest you'd find would run about $150 per month.
If you pay cash for a "beater with a heater" you can carry just liability only. That'll probably drop your insurance premiums in half.
Car payments cost far more than just the payment itself.
where would I even go to look for a car like that O.O for only $500 or if I wait a bit more $1000? My mom says I can just save 6K and buy a car in cash and get minimum liability. Is this true also or only for really old cars?
craigslist.com is always a good place to start looking. also, in most towns there's usually a spot where people are known to park cars for sale. it's usually an abandoned parking lot or just on the side of the road somewhere. if you have a spot like that near you, keep an eye on it.
to answer your original question, though, it's really too hard to tell one person what to expect for an incurance quote because there are so many factors. aside from your age, gender, and driving history, you have factors like the area you live, the amount of miles you put on the car, the type of car, etc. your best bet would be to go to websites for the big guys (like GEICO) and just play around with their quote system.
Mike
Last edited by whiteboyslo; 01-11-2010 at 08:23 AM..
I too was forced to get my own policy at 18. I am 23 now. IIRC the cheapest thing I could seek out when I owned my first vehicle was around $160 a month for the lowest amount of coverage on a rather safe inexpensive vehicle (not that it mattered with no collision). That's still alot of money though for one car! I have stayed accident free and I now insure 2 vehicles for a combined bill of $70 a month! It goes down really fast if you stick with it and drive safe. Having your own policy is also a good way to build credit.
where would I even go to look for a car like that O.O for only $500 or if I wait a bit more $1000? My mom says I can just save 6K and buy a car in cash and get minimum liability. Is this true also or only for really old cars?
You do not want to spend more than a $1,000 cash if you only have liability insurance. Sure, you can do it, but what happens if some uninsured idiot plows into you, or someone steals it? That is the reason I said to buy something really cheap so you can absorb the loss if something like this happens. You live close to the border, so you are going to have lots of uninsured illegals and car thefts. Just for the record, I have had both of these situations happen to me when I lived in Phoenix, multiple times. Enough of that, here is two links to cheap cars in your area.
where would I even go to look for a car like that O.O for only $500 or if I wait a bit more $1000? My mom says I can just save 6K and buy a car in cash and get minimum liability. Is this true also or only for really old cars?
I do feel badly for you, and I know the pinch you're in. I've been there and done that.
You've got a lot of things working against you, and they're really not your fault. You're an 18-year old male, so you are automatically in the highest risk group for insurance, regardless of how well you drive. There's just no way around that. About all you can do is remain ticket & accident free, get good grades, and get older.
Is there some reason your mom or dad won't add you to their policy, and let you pay the added premium? Multi-car discounts can really add up, as do discounts if you insure both your car and house with the same company.
By the way, you can get cars for $500, but they'll need some TLC. You can actually pick up some pretty decent cars for $1,000. But they're probably going to be your basic transportation - nothing cool or hip.
It will vary for every vehicle. My sister (20) just bought a 98 Tacoma. She has full coverage and pays about $160 a month for ins. It depends on the area you're in etc...Progressive was the cheapest she found. That is who I was with when I was her age as well.
I agree with the "pay cash and have liability-only".
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