Car Insurance Induced Heart Failure

bubba

bubba

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Feb 23, 2005
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Lakeland, MN
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iDunno
I almost threw a clot this weekend when my wife told me how much my insurance is going up if we get another car for boy #2.

I have 2 boys, 17 and 19. We bought a car for #1 about 3 years ago and he transported boy #2 around for the most part (school, sports). He's off to school now and she wants to get a car for the younger boy because he will need it for school next year and for this summer. He has a job and says "Oh yeah, I'll help pay for it!". His whole salary wouldn't touch the insurance alone!

Just found out, that for the two boys for a 7 year old Camry and a 4 year old Corrolla is $5700 a YEAR! :eek:
For my truck and the wife's car it is like $1100 a year.
Together thats almost $7K a year! :dunno: And we haven't even left the garage yet!

With the same co for 25 years, No tickets, no accidents, 2 windshields from rocks (about 5 years ago) and one time the wife hit a turkey (not frozen).

I am convinced that the Ins. Co could write in any amount they want and I would be forced to pay. We are in the process of quoting several different co's now, but holy cow, what a racket :mad:.

I miss my 73 Impala, probably still be running and the insurance would be cheap.

So much for flying.....
EB
________
UNIVERSAL HEALTH
 
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Well, this is what happens when the insurance companies successfully lobby for mandatory insurance. Rates are guaranteed to skyrocket. "Racket" is an appropriate phrase to use when it comes to tactics used by insurance companies, whether it be car, health, or aviation. IMHO, of course.
 
It has more to do with the ages of the boys than the ages of the cars!
 
Same company for 25 years? You're well past-due for shopping around for a better deal. If everyone has clean records, multi-car discount, maybe get a multi-policy discount by adding on homeowners insurance, you should be able to do much better than that.

Jeff
 
One is 19 years old? Time to be on his own policy. That's what my parents did with my sister and I.
 
N2212R said:
One is 19 years old? Time to be on his own policy. That's what my parents did with my sister and I.
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Ditto here. The ironic thing was that it was actually CHEAPER at the time, probably because I was only listed with my own car instead of on my mother's as well.

Insurance sucks...until you need it.
 
It has to do with accident and claims rates.

Known fact that drivers that age are much, much riskier to insure. Until they get the loss rate down, rates will stay high. I'll bet that most of the cost is liability.

Most rental car companies will NOT rent to folks under the age of 25. Those that do either charge much higher rates, or only rent if it is done for business travel under the company's agreement.

Same deal as airplane insurance. If losses are high, rates will be high.
 
Same here

All seven of my brothers and sisters had to have our own insurance. Don't buy your own insurance, don't drive was dad's policy. Can't think of a better way to get a kid thinking about consequences of a bad driving record.

And Joe, if you have ever been in a accident with someone who is not covered, well, I have and it sucks. I'll take no-fault any day
 
when I was 16, adding me on to my parents' policy cost them 30 bucks. wow have times changed.
 
My wife's Jeep and my Jag are on one policy. Our son is specifically excluded from that policy. We have a second policy with him listed, with just HIS vehicle on it. Not all insurers will do that, but it saved us about $1500 a year.

Progressive made $460mil 1Q05, on revenues of $3.2bil - 14% profit after tax! Racket is about right.

Edit : to clarify.
 
woodstock said:
when I was 16, adding me on to my parents' policy cost them 30 bucks. wow have times changed.
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My first vehicle was a 1967 Honda 90. Cost me all of $15 every 6 months for minimum coverage liability and uninsured motorist. I was 18. That went up a bit over the next few years, but it was cheap.

When my kids got their licenses my insurance went up a bunch. They did not have fancy cars (nor cars with excess hp under the hood). We did get a multi-car discount and made sure they kept the good student discount. Now, with them both adults and the younger one married (for almost 2 years), can I convince the agent to quit sending paperwork that shows them on my coverage???
 
woodstock said:
when I was 16, adding me on to my parents' policy cost them 30 bucks. wow have times changed.
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Not really. Probably still would be inexpensive. My daughter's rate, who had three accidents in the first 6 months, was less than half my son's with no accidents.
 
woodstock said:
when I was 16, adding me on to my parents' policy cost them 30 bucks. wow have times changed.
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How much things have changed is proportionate to your age, you want to rephrase that? EX: When my friend who is older than me was 16...

Also, don't forget Eric's children are boys and you're a girl. Big diff in rates under age 25.

About 10 years ago I did some research on driving habits/accident rates of college age drivers. The ins actuarial tables and the DOT database agreed males in the 19-22 age group are the highest risk. Ins premiums reflect this. The ins companies add 2-4 years as a fudge factor since it seems young males mature at vastly different rates.
 
Jeff Oslick said:
Same company for 25 years? You're well past-due for shopping around for a better deal. If everyone has clean records, multi-car discount, maybe get a multi-policy discount by adding on homeowners insurance, you should be able to do much better than that.

Jeff
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We did shop around many times in that period and found that the agent we were with was the lowest we could find. We were with St. Paul Co. and then they became MetLife. The (very) few times I have had a claim, they were very good to work with, but not $7k a year to work with!

It just makes me feel so powerless. There is no negotiation, no threats of going with some one else (because they all are the same prices).
I feel like they have'em in a vise and there is nothing I can do about it... :hairraise: How many other industries (non-governmental) operate in this manner? Not many..... Oil companies I guess.....and I hate them too!!
Eric
________
Anal mature
 
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bubba said:
...Just found out, that for the two boys for a 7 year old Camry and a 4 year old Corrolla is $5700 a YEAR! :eek:
EB
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What are they currently charging for just boy #1 and his car? Is it less than $2850? It it a matter of having two young drivers on the policy? My son is on my policy and his car adds an additional $1400 per year to the policy. All of which he pays.
 
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Ghery said:
... They did not have fancy cars (nor cars with excess hp under the hood). ...
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I don't think it matters. My son has a 5.0 Liter Mustang and when we added him to my policy I asked my agent how much more it would be then a four cylinder sedan. They told me it didn't really make a difference. For liability ins they're more concerned with the driver's age than the type of car.
 
bubba said:
It just makes me feel so powerless. There is no negotiation, no threats of going with some one else (because they all are the same prices).
I feel like they have'em in a vise and there is nothing I can do about it...
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Eric, I have a very good friend who owns an agency in WI and can write for Minnesota and has gotten other friends some very competitve rates. I think he's an agent for Progressive. If you want to give him a call, his name is Tim Mower and the number is 715 723-5525. Tell him you're a pilot and a friend of mine and he'll be sure to quote his highest, I mean lowest rate. If nothing else he'll be happy to tell you when things will get better and/or what you could do to lower the cost. BTW he's the least pushy insurance salesman I've ever met.
 
bubba said:
We did shop around many times in that period and found that the agent we were with was the lowest we could find. We were with St. Paul Co. and then they became MetLife. The (very) few times I have had a claim, they were very good to work with, but not $7k a year to work with!

It just makes me feel so powerless. There is no negotiation, no threats of going with some one else (because they all are the same prices).
I feel like they have'em in a vise and there is nothing I can do about it... :hairraise: How many other industries (non-governmental) operate in this manner? Not many..... Oil companies I guess.....and I hate them too!!
Eric
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Don't feel powerless...play their game!

First put the 7 year old car on PLPD. Then go out and find the cheapest thing on wheels (it does not need to run). Tow it home or a storage area and put PLPD on it for the other son. Then put the 4 year old car under your name. Or buy two junkers and put both under your name.

If the policy is still expensive have a good talk with your kids...there is a good chance of a bad ticket in their past or an MIP to cause rates as high as that.
 
If you carry collision and comprehensive on the two kid cars, you're probably getting soaked on that coverage. Self-insure for the older cars' collision and comp, if possible. I did this and it saved about 50% on the kids' cars. The real risk is the liability since the cars aren't worth very much. They'd be totaled without much apparent damage. And, get your name off the titles to avoid liability for yourself.
 
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Gary Sortor said:
And, get your name off the titles to avoid liability for yourself.
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Be careful with this. I tried it with my sons (who both purchased their own clunkers and paid insurance themselves). My Insurance Agent told me there had been some jurisprudence that as long as it could be proved that I supported them, i.e. lived at home, going to school, etc., I too could be held liable and my assets attacked.
 
woodstock said:
when I was 16, adding me on to my parents' policy cost them 30 bucks. wow have times changed.
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Well at that time there were, what, about 4 cars on the road at the time? Most powered by steam. :) :) :)
 
22 years old, and my insurance is about 2100/year (full coverage) w/ $1000 deductible on my 2004 Dodge Neon SXT. That's with 1 speeding ticket in 2002, no at fault accidents, 1 accident in 2003 and a student discount for GPA. Personally I preferred Geico, but Progressive has been fairly good to me and did offer the best rate when I got my car.

I say sign em up for the military, my insurance on my 93 Mustang in 2002 was 1200/yr (liability only) with Geico's rebates. And also they'll get a good life experience out of it :D
 
Anthony said:
Well at that time there were, what, about 4 cars on the road at the time? Most powered by steam. :) :) :)
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I'd run if I were you. Fast.

*ducks and covers*
 
bstratt said:
Be careful with this. I tried it with my sons (who both purchased their own clunkers and paid insurance themselves). My Insurance Agent told me there had been some jurisprudence that as long as it could be proved that I supported them, i.e. lived at home, going to school, etc., I too could be held liable and my assets attacked.
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I'd check with an attorney if this is a concern, rather than rely on the insurance agent. It sounds far fetched to me, unless a kid was under 18 and there were issues involving negligent supervision of a child who was, for example, drinking with you at your wet bar before he ran a red light and hit a school bus.:hairraise:
 
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