Auto Insurance Advice Needed.. *HELP*

[eCamp91]

Hello all,

I'm new here. Well here goes..

I'm 21 YOM. I live in Michigan. I plan on financing a car shortly. I've been shopping around for auto insurance and I have been going crazy because I can't find a decent quote.

No accident/claims.
No tickets.
No prior insurance.

Quotes (full coverage):

All-State: $4707 for 12 months
Progressive: $5300 for 6 months
Liberty Mutal: $14,000 for 12 months

That's just a few but the All-State is the best so far but still expensive. I'm not trying to pay more than my car would be worth in insurance.

Anyone care to help me?
Any companies I can try to get a better quote from?

Thanks all.

 

[GreenSky]

While this won't directly help you, you are 21 yrs. old and obviously trying to finance and expensive car.

Get a decent used car and drive that until you're 25. At that time your rates will reduce to something that isn't monopoly money.

Rick

 

[xrac]

While this won't directly help you, you are 21 yrs. old and obviously trying to finance and expensive car.

Get a decent used car and drive that until you're 25. At that time your rates will reduce to something that isn't monopoly money.

Rick

Buy something cheap that you do not have to carry full coverage on.

 

[Insurance-Guy]

I know nothing about MI but I can tell you Allstate normally isn't for people with no prior insurance.

Find a good independent agent who will be able to look at several carriers for you. At my agency we have several carriers that we could quote you with. There also is a state insurance fund...that may be a option if it is available to get you started.

Good luck what did you buy a Dodge Viper?

 

[djs]

Bravo to you for thinking about insurance as part of the deal.

Remember that the insurance isn't just to protect the investment you have in the car, but to protect the investment you have in yourself with the liability and property coverage. That's why it doesn't just reflect the cost of the car.

I don't sell in MI, so I can only provide 'generic' advice. First, check your credit. Most states use credit as part of the rating factor. Since this will also impact your ability to finance the car, its worth looking first. Even if you think you have no credit, check it out.

Second, the car matters, frequently, a lot. Now, sports cars are always thought to be higher, but its amazing what cars are expensive to insure and what are not (comparitively). Ask an agent to run a couple of comparison quotes for you with different cars and see the difference. All cars are tracked for the frequency they are involved in accidents, the amount of damage they do, the cost to repair them, etc.

Third: Look for discounts. A lot of times doing things like adding a renters policy will SAVE you money due to discounts with some carriers. Its a good idea anyway. Are you a student? Can you qualify for the good student discount? Again, an agent can walk you through what is available and what makes sense.

Third: Stay on your parents policy if possible. I know this isn't always practical/possible and the parents aren't always willing (usually for a reason). But it is cheaper in most cases.

Fourth: Don't be in a rush. There are some key times that tend to affect insurance rates, though they vary by state. In CA, rates drop a lot after 3 years of driving (usually 19, not always) due to picking up the good driver discount, if eligible. Rates drop more after 9 years (usually 25, could be 45, depends when you start driving), since by then, young men have learned that they are not the best driver on the road simply because they drive the fastest.

Fifth: Talk to an agent in your area. They can usually help significantly. Look at the quotes you have so far. Allstate is kicking butt, probably because you talked to an agent. On the other hand, Liberty Mutual clearly doesn't want your business.

Dan

 

[Sam]

This could be a cheap car, Michigan is an areas where insurance companies have very poor losses, especially around Detroit.

 

[Insurance-Guy]

Bravo to you for thinking about insurance as part of the deal.

Remember that the insurance isn't just to protect the investment you have in the car, but to protect the investment you have in yourself with the liability and property coverage. That's why it doesn't just reflect the cost of the car.

I don't sell in MI, so I can only provide 'generic' advice. First, check your credit. Most states use credit as part of the rating factor. Since this will also impact your ability to finance the car, its worth looking first. Even if you think you have no credit, check it out.

Second, the car matters, frequently, a lot. Now, sports cars are always thought to be higher, but its amazing what cars are expensive to insure and what are not (comparitively). Ask an agent to run a couple of comparison quotes for you with different cars and see the difference. All cars are tracked for the frequency they are involved in accidents, the amount of damage they do, the cost to repair them, etc.

Third: Look for discounts. A lot of times doing things like adding a renters policy will SAVE you money due to discounts with some carriers. Its a good idea anyway. Are you a student? Can you qualify for the good student discount? Again, an agent can walk you through what is available and what makes sense.

Third: Stay on your parents policy if possible. I know this isn't always practical/possible and the parents aren't always willing (usually for a reason). But it is cheaper in most cases.

Fourth: Don't be in a rush. There are some key times that tend to affect insurance rates, though they vary by state. In CA, rates drop a lot after 3 years of driving (usually 19, not always) due to picking up the good driver discount, if eligible. Rates drop more after 9 years (usually 25, could be 45, depends when you start driving), since by then, young men have learned that they are not the best driver on the road simply because they drive the fastest.

Fifth: Talk to an agent in your area. They can usually help significantly. Look at the quotes you have so far. Allstate is kicking butt, probably because you talked to an agent. On the other hand, Liberty Mutual clearly doesn't want your business.

Dan

Dan you do make a great point! This guy is acting responsible just for taking insurance into consideration. So many don't.

I will never forget when I was 17- I wanted a silver corvette (convertible) my dad said that's fine I'll co sign for you if you can pay for the insurance - in your name. I had 6 points on my drivers license. My dad was a smart man. I made some calls...after a few we can't insure you, and then when I found a company that would insure me the insurance was more than the car payments!

 

[AgentProvocateur]

Michigan does have high auto insurance rates, but those prices seem a lot, even for someone licensed at least 3 years, age 21, with a clean driving record. 14k with Liberty Mutual is insane!

I think the no prior insurance may be hurting you the most. As you get quotes, ask the agents or companies quoting you what factors are influencing the rates.

As mentioned, improving or establishing credit can improve your rates, but that is not a quick fix.

As recommended, buying and insuring an older car, needing only the mandatory coverage (Though MI has a lot of mandatory coverage), may be an affordable option and a way to establish prior insurance. Then, once you have one year of continuous coverage, you may be able to shop around for a new car and lower auto insurance rates. Also, being listed as a driver on another person's insurance policy for a year can count as your insurance history.

Speak to a few independent agents. Other company options, possibly not available from independent agents, are: Metlife P&C, Esurance, Nationwide, AAA, & GEICO.

Edited to add: Please check that Allstate rate before you insure with them. I think it's most likely 6 months, not 12 months. If it is 12 months, you want to make sure it is accurate, since it's unusual for it to be that much less than Progressive.

 

[BlockO]

ecamp91,

Michigan is the only state that requires unlimited lifetime medical benefits. Your auto insurance company covers you to the tune of $500,000. After that a state required catastrophe fund (MCCA: which costs $175 per year per vehicle) kicks in for anything beyond 500K. No other state is like that. Which is why auto insurance is so high in MI. When I run auto insurance quotes there, it is not uncommon for the medical benefits to be 2/3 or even 3/4 of the total premium.

couple things:
1. Do you have health insurance? If so, you can get a break on some of the medical by taking the excess medical instead of primary medical. That will save you a big chunk right there.

2. I am very suspicious of the quote you got with Progressive. Did you quote with an agent or a direct CSR? You may want to re-quote with them with someone else. Even though you're 21 buying a new car, I have NEVER seen Progressive quote that high for one person and one auto with a clean record (not even close). Whoever quoted you must have quoted very low deductibles and added all the bells and whistles (and if you have health insurance, they may not have factored that in).

-one last thing: Unless you are simply loaded, I think it is insane for a 21 year old to be buying a new car! But that's your business. Just sayin'.

 

[godzgreatgift78]

If you want, you can PM me and I can help you with some tips on how to get a cheaper rate. Probably much lower than Allstate.