- May 23, 2024
- Posted by: legaleseblogger
- Category: Related News
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## Situation with High Insurance Rates
So, I am currently 26 years old, almost 27. I obtained my driver’s license when I was 21, which I know is considered quite late. At that time, I purchased a used Ford Explorer for $15,000. However, when I went to get it insured, I was shocked to discover that my insurance premium would amount to $600 per month! Since then, I have been involved in one accident and have upgraded to driving a Dodge Durango that I am financing. Despite these changes, my insurance rates remain exorbitant at $465 per month. I have tried switching insurance providers 2-3 times in hopes of securing a better rate, but to no avail. I am at a loss as to why my insurance rates are so high, and no one can offer me a clear explanation.
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## Additional Information from the Policyholder
I reside in Boston and have a clean driving record, with zero speeding tickets to my name. Despite my efforts to maintain a spotless driving history, my insurance rates remain disproportionately high. If anyone has experienced a similar situation or has any advice on what steps I can take to address this issue, I would greatly appreciate your input.
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****** just grabbed a
You’re driving large SUVs that are known by insurance companies to cause a ton of damage. You have a recent accident on your record, you’re young AND you financed meaning you have to have a minimum of coverage. You want to reduce your expenses then sell the big honk’n SUV, buy a corolla and you’ll see your insurance probably get cut in half.
You have five years of driving experience and an accident on your record. You are in a high liability class.
How long ago was your accident?
Also, Dodge is one of the most expensive brands to insure according to this [article](https://www.marketwatch.com/guides/insurance-services/most-expensive-cars-to-insure/).
You have a claim under your name, you are young, may or may not be a male/hothead, drive a large SUV that’s probably expensive to fix. Dodge brand is associated with bad drivers. You may be living in an area where it gets stolen a lot.
There are a lot of factors but the most influential is statistically how likely you are to cost insurance companies money. Since they have evidence that you cost people money, they need to charge you more.
Rates are set by risk. Things that increase risk that drive rates up: younger age, less driving experience, being male, being single, living in a risky zip codes, having a claims history, bad driving record, high annual mileage, driving an expensive or luxury car
Rates are also determined by coverage so you’ll pay more for lower deductibles or higher coverage limits.
Car insurance has gone up for everyone I know in my state, regardless of accidents/ violations.
You live Boston is a big factor
As someone who works in insurance. I did some quick digging and turns out the MA has extremely stringent rules around auto insurance rating. Your personal characteristics pretty much play no role at all (gender, age, etc.).
My best guess is that it’s a combination of an accident plus a more expensive car plus a lack of driving history plus a more expensive market for insurance. I would recommend looking into if they have any discounts for affinity memberships or if you can bundle other insurance you have. Bundling other insurance you have (renters for example) with the same company could potentially also provide a discount.
Of note, several comments mentioned credit score but in Massachusetts credit scores are actually not allowed to be used to rate insurance policies.
But what’s your coverage? The price of insurance itself means nothing. Go on progressive, geico, and state farm website, and do your insurance coverage yourself. You’ll see exactly what you pay for what BEFORE getting insured from them. Then you can play around.
Question – how is your credit history? You may be surprised, but that’s one of the biggest factors in insurance cost.
Either way I think what you should do is buy a car in cash and have liability coverage only for a couple years. Once your record is a bit more clean again, your quotes should go down significantly. The fact you haven’t had a license for as long is also a contributing factor and would be less so by then.
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Young, probably male, single, newer driver, new car, previous accident, expensive zip code, likely renter….what’s confusing about this?
Your rate is based on personal demographics, cost/type of vehicle, location, cost/number of previous claims, length of driving history, and credit score.
Younger is worse, single is worse, expensive area is worse, lower credit score worse, new car worse, previous claims worse, shorter history worse.
What is the value of your Durango? It’s very expensive to get full coverage insurance on an expensive car. You probably should have purchased a cheap car that didn’t require full coverage insurance until the accident drops off your record.
The vehicle repair costs have skyrocketed over the last few years . If you get into an accident your insurance must have the enough coverage to repair your specific vehicle depending on model / make and year.
Here is why.
https://www.minneapolisfed.org/article/2023/despite-easing-inflation-vehicle-repair-costs-soar
“Insurance” != “Insurance”, it’s hard to know. What kinds of coverage did you buy? What kind of limits? What kind of options?
Turning 25 should have lowered your rates, I thought.
On the other hand, you also have way less history. Compare yourself to someone who started being insured and driving at 16 – they’d have 10 years of record when you only have 6 and one major accident, from the sounds of it.
The answers are simple
You have limited driving history and probably credit, within that limited history – this increases liability
You had a accident within the period of your limited driving history and turned over a car within a few years – this increases liability
The used car market is extremely high right now and as a result repairs are high – this increases liability
You live in a large tier city, expensive city, a expensive and higher liability state etc – this increases liability.
I have been driving for decades have excellent credit, got my permit at 14 or 15 never had a accident – this decreases liability
Because cars cost so much and are so damn hard and expensive to fix. They just write them off. So when people get in accidents the pay out per incident has skyrocketed and we all share in the pot to pay out.
That’s insane! Over $400/mo for car insurance is ridiculous. I pay $180/mo, live in NY, 24 yrs old, no accidents/tickets
It’s because you live in Boston. When I moved from CT to Boston, my rate tripled. I now live in NC, rate is <40% what it was in Boston. Only variable that changed was my age…same car, no accidents, no tickets…it’s Boston.
1. You live in high population Boston.
2. Uninsured motorists are rampant. Most people quit getting insurance because it is costly. So, insurance companies raise the rates on the people that pay. Eventually, forcing them to quit insuring their car and being uninsured. Which means, the auto insurance companies raise their rates again, on those that are paying.
Endless Cycle. Eventually, no one will have auto insurance because it costs too much.
These massive vehicles should cost more to drive. Glad the insurance companies are doing the right thing.
Boston is a huge factor in how much more you’re paying. As well as being young and having a previous accident. I moved from a small town in CT to Worcester MA my insurance went up nearly $200
I’m sorry, I pay $600 every 6 months. Paying that much per month is ridiculous. 😱
You are male or female? Where do you live? Accidents do make the cost go up.
My grandson drives a Honda CR-V. 18 years old and he pays $500 a month for basic car insurance.
Your accident increases your insurance for three years. You are over 25 or it would be more. You drive an SUV, which costs more to insure.
Sometimes insurance company’s will give a discount for passing a safe driver course. (Geico, up to 15%)
What was that one accident? Was there expensive damage and a claim made to at least vehicle?
Was the accident your fault?
Are you a home owner?
Do you have good credit?
Are you single?
What trim and year is the Durango?
What coverage are you asking for? Comprehensive? Where do you park the vehicle overnight?
How many miles do you drive per day or per some unit time, on average?
Do you need another driver besides yourself?
(we’re *just* getting started here…)
American consumerism is the reason. People feel a need to buy 50k dollar midsized Sedans or 100k dull size trucks and us poor folks are forced to pay our share.
If these vehicles get in a simple fender bender. It knocks out radar and 3 or 4 sensors that cost at least 5k to repair.
Yet in Asia you can get a brand new Toyota Hilux(Tacoma) for 10k dollars. So as long as Americans pay it. Manufacturers will sell It.
Its high everywhere.
We had two newer vehicles, full good low deductible coverage was $180 a month for my wife and I, both driving for a long time, clean records.
We bought our 18 year old daughter a 2013 jeep patriot, paid cash, got the minimum coverage on it and our policy jumped to $230 a month. Not terrible, that was August.
Then last month got a letter, our renewal was up and the new rate was $359 a month. I called our agent, who shopped it around to several insurers and was told that was the best deal. The huge increase was “due to cost of parts, repairs, and replacement vehicles being higher than ever before” according to the agent.
Having an accident or ticket will make it go up even higher.
Every time that there is money on the middle class table. Businesses that provide required services/product jack up prices. The entire system is built to strip of you of your money before some other corp strips the insurance company of theirs.
If you are somewhere between middle class and poverty? You get to scream louder.
“I live in Boston”
That’s your answer. When I lived in downtown Atlanta my insurance doubled from my hometown in Alabama.
You have a history on record in the past 5 years.
These are all factors.
For instance I 27M married. live in NC outside of a major downtown with a 2013 explorer full coverage for 140$ a month no tickets in 10 years and no accidents. I also have a second car on my policy
But I also have a high deductible to offset the lower monthly price because honestly if it doesn’t cost 1k I’m just going to pay out of pocket anyway
Single male in a large SUV with a recorded at fault (I assume) you are going to have a higher rate
your profile.
– you are still young (just left the 18to25 range)
– you already have 1 accident (thats 20% per year)
– you drive an SUV which is known to get into a lot of accident (bad handling and bad visibility)
– you are financing which mean you have to have more than just bare minimum insurance.
Sometimes it makes sense to just opt out of collision insurance and go for the legally required liability insurance. $600 a month for collision is insane. Put that money aside for car expenses instead.