Car insurance

Pezzoni · Post by **Pezzoni** » Thu Jul 21, 2005 6:52 pm

I've just started driving in the last few weeks, and insurance has been an absolute nighmare - Not due to a lack of people who want to insure me, there are hundereds of them, but because of the price; I've had quotes at the absolute lowest of £2,500, and at the highest of £70,000 (per anum).
This is driving a 1.2l car with a value of around £8,000 - It's not especially valuble of expensive (although it is a nice car).
This is becuase I'm within a certain age group (17-25) - Fair enough, it's the group that is statistically most likely to have accidents, and premiums should reflect that to a degree, but the cost is unrealistically high.
I'm in the fortunate position of having enough money to pay for this, with the help of various people, but for example lets take someone who's family is earning minimum wage, and has just bought a £400 car from a garage somwhere. The insurance quote is still around £2,500 (I checked). So, do you pay 6 times the cars value per year to keep everything legal, or do you not insure it, and risk a *gasp* £80 fine? Of course, if you hit anything, you're in trouble... Unless you drive away, and let that person deal with it. (As has happened to my parents, twice).
Of course, there is the 3'rd option - Don't drive, but that's not one all that many people will be willing to take.

If the cost of insurance keeps rising as it is, more people aren't going to bother with insurance (and others won't drive, and others will cough up). To avoid that, either some limits have to be imposed (not possible, it's up to the company, not anyone external), or cases need to be considered more individually than the current system (no claims bonus... Which can be wiped out by an uninsured driver hitting you). To me this seems most realistic - I have friends who are excellent drivers, and are careful, stick within speed limits etc. I also have friends who are the opposite - Drive through residential areas at 60, down normal roads at 110, and are generally just stupid, and indeed those who are just bad at it (swerve into the curb every time a car comes the other way, go into neutral on the motorway because 'I don't want to do any faster!') but at the end of the day, the good responsible drivers are paying for the irrisponsible bad ones.

Riamus · Post by **Riamus** » Thu Jul 21, 2005 6:59 pm

Not really sure the exchange from USD to Euro, but I know it's not too far off, so that is a huge insurance rate, even for a young driver.

In the US, when you first start driving, you have no driving record and will pay extra. Each year without an accident/ticket/etc will lower your insurance (up to a point) and when you reach certain ages, it will be lowered more.

I started out paying about $900-1200 per year 11 years ago.

Now, with a couple tickets under my belt, I am paying about $800. If I was at a normal insurance company rather than the one I'm using now, and didn't live in the state I'm in, where insurance companies have to charge a specific amount of money and can't really compete, I'd be around $500-600 per year. That's for full coverage on a $2000 car with a $500 deductible.

In most states in the US, insurance companies can compete, so you can get good prices. This state is an exception, unfortunately.

(All prices in USD, of course)

Heimidal · Post by **Heimidal** » Thu Jul 21, 2005 7:09 pm

I'm in a "high risk" state due to mountainous terrain and the occasional snow storm in the winter, my rates run anywhere from $2,200 to $2800 per year for a vehicle valued at $13,000. I'm 20 years old and have a perfect driving record. And this rate reflects a multi-car family discount.

It's ridiculous.

Flaming_cows · Post by **Flaming_cows** » Thu Jul 21, 2005 7:12 pm

Riamus wrote: Not really sure the exchange from USD to Euro,

He was using the symbol for the British currency (pounds), not Euros.

Darth Wong · Post by **Darth Wong** » Thu Jul 21, 2005 7:26 pm

Auto insurance industry gouging is quite common. Here in Ontario our rates are nearly 50% higher than the rates in British Columbia, which has state-run auto insurance.

Our insurers have been crying poor, saying that they have no choice but to raise rates because they're losing money, then they turn around and announced to their shareholders that last year was a record year for multi-billion dollar profits. And they honestly seem to figure that we won't notice this blatant contradiction.

Tux_Rules · Post by **Tux_Rules** » Fri Jul 22, 2005 5:43 pm

I get to a $150.00 a year per car for the Catastophic Claims Association. Michigan is the only state that has this. Make for a total bil of about $530.00 a year for the basic coverage. And with our no-fault, if a drunk driver blows thru a stop light and totals my car, I can only get $500.00 for the damage (I think they call it mini-tort) unless I carry either full coverage or at least collision. Now that sucks.

Riamus · Post by **Riamus** » Fri Jul 22, 2005 5:50 pm

Hey, didn't realize where you were. I lived just northwest of you much of my life... Pellston.

I had full coverage in Michigan for around $700/month... and I left when I was 22 or 23. Sure, it had a $500 deductible, but unless you are hit, it saves a LOT by having a higher deductible. They even paid for when I had an electrical fire that ruined the wiring harness... $1800 to repair the car and it just cost me the deductible. Not bad, really.

Tux_Rules · Post by **Tux_Rules** » Sat Jul 23, 2005 6:53 am

Riamus wrote: Hey, didn't realize where you were. I lived just northwest of you much of my life... Pellston.

I had full coverage in Michigan for around $700/month... and I left when I was 22 or 23. Sure, it had a $500 deductible, but unless you are hit, it saves a LOT by having a higher deductible. They even paid for when I had an electrical fire that ruined the wiring harness... $1800 to repair the car and it just cost me the deductible. Not bad, really.

Cool, you would have been definately near.
I take it you left to maybe find a job, as for the most part decent paying jobs in the area are almost non-existant. I drive to Charlevoix (50 miles one way) to work.

I think that the Cat Claims Asso. is not fair. $150.00 per year per car! Can only drive one at a time, and there is no option to not get it. Michigan is the only state to do this to.

thecharmed01 · Post by **thecharmed01** » Sat Jul 23, 2005 10:14 am

Damn!! Your guys insurance is crazy high!!!!!

I live in New Zealand and I drive an extremely high risk vehicle. Turbo, 4wd, 1.8l sports car.
Named the most stolen vehicle in New Zealand and blacklisted by most insurance companies, I pay under $500 a year for full cover, including $4'500 cover for stereo and $3'000 cover for wheels.
I got it so low because I have been insured with the same company for so many years now...........

When i was 16 I had full insurance at $800 a year because of my age and I Was on a learner licence.
At 17 I was on my restricted and it didnt drop. They said I was still high risk.
At 19 on my full licence I got a honda integra and they said $700 per year because i was on my full now but still high premuims and I had a $2500 excess because I was under 25.
When I was 21 I bought a galant. 2l turbo fwd. They kept my premiums high but they did drop my excess to $900 for being a good customer.
Premiums didnt really change till I Was 25 and bought my current car, then they dropped massively because I was out of the "danger group"

I think you gotta pay the price when your young and build up a good reputation with your insurance company.
Then you get a better deal later on!

Rabidus_Lupus · Post by **Rabidus_Lupus** » Sat Jul 23, 2005 7:51 pm

Males are screwed just because of their gender in the states. Females have it great in this area of life.

Darth Wong · Post by **Darth Wong** » Sat Jul 23, 2005 9:40 pm

Rabidus_Lupus wrote: Males are screwed just because of their gender in the states. Females have it great in this area of life.

Responsible males are screwed because of the idiotic behaviour of irresponsible males, which raises our insurance rates. Let's face it, every time you see somebody weaving aggressively in and out of traffic in a sports car or souped-up compact, check the gender: it's always a guy.

Heimidal · Post by **Heimidal** » Sat Jul 23, 2005 9:54 pm

Darth Wong wrote:
Rabidus_Lupus wrote:Males are screwed just because of their gender in the states. Females have it great in this area of life.

Responsible males are screwed because of the idiotic behaviour of irresponsible males, which raises our insurance rates. Let's face it, every time you see somebody weaving aggressively in and out of traffic in a sports car or souped-up compact, check the gender: it's always a guy.

A friend and I were driving to Denver the other day and I struck up a conversation about insurance after seeing this thread. We started looking around, and sure enough only one or two out of about twenty cars driving like maniacs was a woman.

Idiots do indeed spoil it for the rest of us.

A_Jelly_Doughnut · Post by **A_Jelly_Doughnut** » Sat Jul 23, 2005 11:44 pm

Ther'es a fairly old, full size GMC truck in the garage for which we pay about $1200 a year on insurance. According to Blue Book, it is worth about $2500.

The insurance that has been payed on it in its lifetime is over the initial starting value of the vehicle. No one in the household has had a wreck or ticket in the lifetime of the vehicle. And (the kicker), it only has 40,000 miles on it. Every mile has cost about $0.42 just for insurance. If it has 150,000 miles, this rate would be great. Heck, compared to the ones you guys are posting, its still a very cheap rate.

But I can't see why the insurers wouldn't take into account the number of miles you drive the car. Oh wait, they're losing money out the wazoo

Heimidal · Post by **Heimidal** » Sun Jul 24, 2005 12:54 am

A_Jelly_Doughnut wrote: Ther'es a fairly old, full size GMC truck in the garage for which we pay about $1200 a year on insurance. According to Blue Book, it is worth about $2500.

The insurance that has been payed on it in its lifetime is over the initial starting value of the vehicle. No one in the household has had a wreck or ticket in the lifetime of the vehicle. And (the kicker), it only has 40,000 miles on it. Every mile has cost about $0.42 just for insurance. If it has 150,000 miles, this rate would be great. Heck, compared to the ones you guys are posting, its still a very cheap rate.

But I can't see why the insurers wouldn't take into account the number of miles you drive the car. Oh wait, they're losing money out the wazoo

You have to remember that full coverage usually pays for at least two vehicles in the event of an accident, not to mention medical bills.

</playing devil's advocate>
And yes, horrible XML, that.

Kazer0 · Post by **Kazer0** » Mon Jul 25, 2005 1:54 am

</3 my quote of $5,500 CAD 6 months ago, and </3 my quote of $6,500 last month. <3 the $300 car though.

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