Help, I'm a new driver and insurance costs are giving me a heart attack

joel0622 · June 2007

Then your Aunt is liable if anything happens and they can go after her in a law suit.

Not to sound like a smart [non-permissible content removed] but the best advice I can give is to move to a state that does not rape you to live there.

Your rates are 750% higher then mine and I feel pretty confident in saying that a guy who does the same thing I do for a living does not make 750% more on an annual basis.

blueiedgod · June 2007

Your rates are 750% higher then mine and I feel pretty confident in saying that a guy who does the same thing I do for a living does not make 750% more on an annual basis.

I can tell you that you are absolutley right. I moved to Buffalo from Stamford, CT (originally from the Bronx, NY) and the cost of living is astronomical compared to NYC and suburbs.

My mortgage payment on a 1500 sq. ft house (yard, garage) in 2nd safest town in the whole US (Amherst, NY dropped from No. 1 spot after an anti-abortionist killed an obstetritian) is $375/month. Compare that to my sister's $3500/month rent on a 600 sq. ft apartment on 34th street and 10th ave in Manhattan.

Given that we are in different industries, but she does not pull in anywhere near the 10 fold difference in the cost of living. She DOES make more, but only 10-15% more and only because she is in finance field and I am in R&D field.

A friend of mine who lives in Manhattan is in the same field and makes just as much as I do in Buffalo.

Some will think that life just stops outside of the isle of Manhattan, but they are just as wrong as the people who proposed that earth was flat and sun rotated around the earth.

bobst · June 2007

You mean the earth ain't flat? Dad gum! Thanks for ruining my day.

tidester · June 2007

You mean the earth ain't flat?

If it helps, you can say that the Earth is flat - locally!

tidester, host
SUVs and Smart Shopper

Kirstie_H · June 2007

And if she is listed as the main driver and you're an occasional driver when that's not the case, that could be considered insurance fraud. It would also be fraud if you say that you live at her house when you do not.

As we mentioned earlier, there's nothing (legal) behind door #3. Pay the high insurance rate or buy a car that's cheaper to insure.

phase2k2 · July 2007

best i found was a 1993 altima

3125/6month policy in minium state requirement no comprehensive.

should i take it or no?

oldfarmer50 · July 2007

"...should i take it or no?..."

Yes, take it and then drive it to another state that doesn't rape it's drivers.

Kirstie_H · July 2007

Hey, now you're thinking sensibly! Buy that, or something like it, and drive it for at least a year. By then, you'll no longer be a "new driver," and you may find that your rate will go down.

olddog7 · July 2007

I know I'm coming in to this a bit late, but what about renting a car? Sounds like it could be cheaper than even owning a car is that area. Although I don't know who rents cars to such young drivers. If insuring a car in the Bronx is over 12k a year for phase 2k2, maybe he should use the public transportation there and take car service or taxis for more important occassions.

sandpaper · September 2007

Here's the lowest price I got in the state of WA, using Geico:

$516.80 for 2008 Volkswagen Jetta - 6 months
Bodily Injury Liability(BI) $25,000 / $50,000 $ 301.5
Property Damage Liability(PD) $10,000 $ 215.30

I am a full-time 4 year university student with good academic standing. I've had my license for just about 3 years now - always been on my parent's plan.

Is this too cheap? Too basic? What should I be concerned about? I'm assuming that if the car is financed in my name and the insurance is in my name, they won't go after my 'assets' if something screwy happens (I don't have any assets). If the car is financed, am I required to purchase more coverage?

im_brentwood · September 2007

$10k in property damage liability? That's pretty foolish...

That means if you hit someone else you're only covered up to $10,000. God forbid you hit a new Accord even... up that to $50k or better.

You don't need huge liability limits if you don't have much in the way of assets, which I doubt most college students will.

oldfarmer50 · September 2007

"...Is it too cheap? Too Basic..."

As to being too cheap, I assume you mean too good to be true. My 20 year old son with a whole ton of points got insurance comparable to you for $650 for 6 months from Progressive. I thought that was a steal.

Too basic? It depends. You have no real assets now I presume so there is nothing to lose. However if you have a major accident a judgment can follow you for many years. You could be paying 10% of your wages for up to 20 years in my state.

maxx4me · June 2012

While Kirstie has explained that their is no insurance fairy out there, I would like to know if there is a "hit list" of the best cars to buy for a brand new driver that won't break the bank on insurance rates? The reason I ask, is that I talked to USAA yesterday, and they were all over the board on advice. They claim that the "new car discount" they give for (current) 2009-2012 models makes buying a 2006-2008 model NOT worthwhile. USAA also did not like the fact that I was looking at the Yaris as one of the three used cars (Fit, Versa, Yaris) for my new driver. USAA claimed that it was "too small and that I should look at a small SUV sized vehicle." As one who believes that it these stupid "trucks" that are causing all the problems on the road in the first place, I balk at that advice. The Fit, in our simulated insurance cost test case acually came out as the least expensive of the three (as I told the agent it should given its great driver visibility; perfect for a new driver). After talking to USAA, they seemed to make it sound like the road was one big smash-em-up-derby and that I should be looking for something survivable. I countered that the best accident is not one that you survive, but rather the one that you don't get in. Are there any insurance fairys out there that know if there is a magic list of cars that insurance companies favor? I know a old clunker is the way to go, but given the advances in safety (9 airbags on a new Yaris), an older car doesn't seem like a prudent idea at first glance. Thanks in advance for your advice.

michaellno · June 2012

When you say 'brand new driver', are you referring to a teenager?

When I went through this with my step-kids a number of years ago (they are 25 and 23 now), my insurance agent from State Farm recommended a Saturn sedan.

This was when the Saturns were made of plastic panels, so were cheap to repair. In addition, was told that small sedans were generally the least expensive to insure.

I was told no two doors, no pickup trucks, but they didn't have any evidence that hatchbacks (admittedly more rare then than now) were more or less expensive than sedans.

Hope this helps.

I just looked at my last insurance statement - it costs me $10 more per month to insure my 2006 Saturn ION (which my step daughter is rated on) than the 2010 MINI Cooper that I am rated on.

maxx4me · June 2012

thank you so much michaell. That does help. Yes, it is a teenager. Anyone else have some thoughts? Your comment about 2 doors is funny. I'm considering the 2 door yaris because it moves the B pilar back considerably, allowing excellent side view of cars on one's left. I am also looking at the 2 door because my teenager is not allowed to have passengers (especially teenage ones), thus there is no need for 4 doors. Once again, the insurance companies do not take these issues into consideration.

billy3554 · June 2012

I have had three teenage girls added to my insurance over the past ten years, GEICO. I have provided each a car, Civic Coupe, Scion TC. In all cases, the added insurance for the new vehicle, with child as the primary driver, was $600 - $700 a year. I believe the key factor was all three girls were 4.0 students, in HS and college. Good grades make a huge difference.

michaellno · June 2012

I believe the key factor was all three girls were 4.0 students, in HS and college. Good grades make a huge difference.

Good point. We also were able to get a discount based on grades. In addition, attending a driving school may also reduce the premiums - check with your agent about the guidelines for your state.

Kirstie_H · June 2012

My daughter just swapped a Chevy Cobalt (coupe) for a 4-door, 4-cyl Passat and it is saving me a TON of money. I forget what they told me, but it was significant.

I'll mention this conversation to our editorial staff. Might be kind of cool if they had a "top 10" or "top 20" list of vehicles for lower insurance rates for teenagers (not beaters, newer ones).

maxx4me · June 2012

kirstie/michaell/billy: thanks very much. I think a top 10 list would be great. Your experience kirstie seems to point to what USAA was saying: midsized cars over economy cars for lower insurance. From my perspective, I have steered out of so many accidents in the last 40 years because I drive small cars. It seems like the insurance companies want us to drive reinforced tanks to keep personal injury claims down. I'll stick with my econo boxes and avoid bad drivers as I have done for decades. I'll keep cars like the 2012 Yaris with 9 airbags on my short list until insurance costs beat me into submission

Kirstie_H · June 2012

While not specifically about insurance, there's a new article called Best Cars for Teen Drivers on our site. One of the factors in True Cost to Own (which was one of the rating criteria) is insurance costs. Might be worth reading about what's recommended and why.

fushigi · June 2012

Along the lines of what the article mentions:

- Get a base engine with AT. Base engine = less chance/ability to do burnouts & other "dumb teenage driver" tricks. AT = easier for the novice driver.
- Avoid any model or trim that is "sporty" or performance-oriented. Coupes are often perceived as sporty so that might be where the "avoid coupes" advice is coming from.
- Add available optional safety features. Note that some won't impact your insurance rates; others might. It will depend on your insurance carrier.
- Find a model that's cheap to repair.

On the insurance side of the equation:

- Shop around on your insurance carrier.
- We have a combined policy with both cars & our home. Getting home owners insurance bundled knocked like $70 off the 6-month premium on the auto side. The home insurance is still paid by mortgage escrow so that's not messed up.
- Look for payment discounts. Lots of insurers offer monthly or quarterly options, but there can be added fees. Paying 6 months at a time avoids that for us.

If your agent is any good, they won't mind spending a little time on the phone with you going over 3 or 4 options. Good agents are interested in building long-term relationships and realize that looking out for their customers can earn a higher repeat customer rate.

stever · July 2012

A reporter is looking for Midwestern/Southern US residents between the ages of 17 and 30 who do not plan to purchase a vehicle and who frequently use public transportation. If you fit this description, and you are willing to share your story, please send your daytime contact information to pr@edmunds.com no later than 10 a.m. Pacific on Friday, July 20, 2012.

andres3 · April 2013

Oh Oh Oh..I can't wait to sign up...I've also got two teen age drivers. One has 3 tickets but no accidents and the other has 3 accidents but no tickets.

That doesn't surprise me at all LOL!

Tickets probably represent a self-thinking good driver, and accidents a terrible driver. The way police do traffic enforcement, tickets have nothing to do with safety.

andres3 · April 2013

There is nothing behind door #3.

To revive an old dead horse, door #3 in CA would be to purchase a $50K bond in CA to self insure. Not sure what other States require to self-insure. But if someone gets quoted more than $5K/year, this would makes sense. Money is free to borrow right now pretty much with rates so low, so you might as well take on the risk, and then reduce that risk to near zero by driving carefully and taking it seriously. In a few years time you'll have enough money saved up to cover a new car should you get into a wreck; which you won't if your taking driving seriously and driving carefully.

Exceptions: If your car is stolen, or your hit by an uninsured; your screwed.

RodneyKnupp · September 2018

Well after the first year the rates doubled on them due to the number of accidents. It had nothing to do with the car, it was the demographic we sold them to

BFC · December 2018

Cost for first time drivers: 1st buy a hooptiemobile. Find a 4 door family sedan that has not sporty features AT ALL. Find a safety review of these cars. Safe big family cars get lower rates as do SUVs. Then hope and pray you can stay on MOM and dads insurance (at home) Get the little drive safe thing so they can track how safe you drive. Then DRIVE LIKE a stereotypical old person. Until then keep calling around for insurance rates. Once you establish you are a safe driver your rates will go down some. When I started driving back when MTV was a new thing, they had no law forcing you to have insurance on your car. So I drove without, and had no wrecks, but I did get speeding tickets. When I did get insurance those tickets cause my rates to go up. Insurance follows incidents for 5 years back. So I could only afford to insure one car, barely. I had to call 12 different places. And ended up with high risk on state auto I think. I am now with state farm and have been for many years now. I drive a v-6 mustang (looks cool, but is slow) and I pay $25 a month liability in Columbus, Ohio. My kid who just got a car is on my policy and gets $45/month liability for a Mercury Sable 4 door. So old vs young , 2 door sport coupe vs 4 door family sedan. If I drove the Mercury Sable my rates would be $15/month. State Farm gives you no discount for paying 6 months or 1 year vs a monthly charge. Some companies do and it can be an extreme cost difference. Living outside the city your rates go down, if you can walk to work and keep the miles down on your car your rates go down. got a bicycle try that in the warmer months. I was able to cut my cost on the mustang by riding the BUS for 1 year till I changed jobs. My employer at the time gave me a bus pass, so I saved gas, insurance and parking (not including wear and tear on my car) I put less than 2500 miles on it that year. Because WE are forced to get insurance for our car to drive, WE are forced to find saving where ever we can. For some people owning car is impossible cause of cost. Owning a car and driving a car is a privilege not a right and you will pay for that.

EScott · February 2019

This whole thread is like a course on insurance cost for cars! Such a helpful thread! I will totally bookmark this thread as a guide for when I buy a car.

johnnyli730 · October 2019

I think its because of the simple fact that your a new drive and only 22. You have no driving history, under 25. Your rate will decrease the longer you have your license/history and after 25. In the mean you should try go under your parents insurance.

stranger2020 · June 2020

Oh man, I'm sorry for you. Now I could have the best pieces of advice for you. I understand your concern and yep these companies won't take pity on you even you are only 22 y.o. I'm older than you and my son is turning soon seventeen. So, I was looking for some insurance company for his new car. I want to buy him a car, but this insurance car companies have enormous prices. One of my friends recommended Money Expert I took a look at their website. Man, really! You can save money! I go for it definitely!

Fosgate87 · July 2020

Same thing happened to a family member who was 23 years old and a new driver. Insane rates!!!!! What she did was she found an independent insurance broker who shopped around for the best rate. It was still expensive but not as bad as what Geico wanted from her. Best of luck!

Help, I'm a new driver and insurance costs are giving me a heart attack

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