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New vehicle = insurance ripoff


#1

I recently acquired a new 2017 Kia Optima Hybrid EX. However, this post is not about the car, but my insurance carrier. Last time I got a new car, they tried to jack up my rate by $80/mo. I had to threaten to switch carriers to get them to back off. Now that I’m getting another new car, they’re trying the exact same scam (except $100/mo this time.)

If I go to a competitor’s website and enter the new car, I get a rate suspiciously similar to my old rate with my old carrier on the old car.

Is it a common practice to subject new car buyers to this kind of rate hike?


#2

either do that again or actually pull through and go insurance shopping


#3

Do I have to wait until my current policy expires, or can I pull the trigger immediately? I’m in the USA.


#4

What’s your situation? How much coverage, age/sex? There’s a lot that goes into it.

Newer cars are more expensive to insure, simply because they are more expensive to replace.


Uh, I’ve just dropped my policy whenever I wanted. You’ll have to check your terms.

Who are you with?

It’s common practice for a new car to be more expensive than an old car.


#5

I’m in the UK we have loads of comparison sites where you can get the best deal on all sorts of things like insurance. energy supply and internet. Do you have that type of thing in the US?

https://www.comparethemarket.com/


#6

We sometimes have that, but it depends on the situation.

Frankly, $100/mo for full coverage on a new 2017 Optima Hybrid EX is a fair deal.

I’m making the assumption that OP paid ~26-30k for the car.


#7

No, not $100. $100/mo more, $250/mo total on the new car. Carrier is GEICO. Single male, 49 years old, $25/$50 liability/collision.


#8

Oh, I misunderstood. I wouldn’t pay over 130/mo for that coverage.

For reference, I’m 25M, and pay ~160/mo for 150/50 coverage on my 2013 Mercedes E350 Coupe.

Do you have marks on your record?


#9

One speeding ticket about 6 months ago, and an accident 7+ years ago.


#10

Accident shouldn’t make a difference, that long ago. Typically anything after 5 years is not relevant unless it’s something like reckless driving or similar.

Ticket, did you do traffic school, get it dismissed or just pay the fine? If you just paid, that could be part of why they’re hiking the rates.


#11

Just paid the fine. The court date conflicted with my work schedule, so I just paid it.


#12

Usually you can request a continuance, but that’s water under the bridge.

I wouldn’t expect a 40% rate hike because of that though.

Maybe 15% or so. At your age, speeding shouldn’t be a risk factor, especially considering the car you’re driving.

I would absolutely leave. I’m with Mercury and I’m happy, but you might shop around. My recommendations are to get quotes from a couple of the following:

  • State Farm
  • Esurance
  • Farmers
  • Mercury
  • Liberty Mutual
  • Allstate
  • Progressive

#13

Progressive had the best rate at $140/mo for 100/50 coverage ($500 deductible.) Some of them were nuts; Liberty Mutual wanted $280/mo. State Farm was reasonable. I wonder why there’s so much variance.


#14

I really couldn’t tell ya.

Progressive’s rate sounds good to me.


#15

I don’t know about your particular situation but sometimes loan terms demand a higher amount of insurance coverage capable of covering the loss of the vehicle


#16

Progressive is a bunch of sneaky cunts. They always jack my rate up after a year so I always switch then switch back 6 months later cause it’s cheap again.

Insurance is annoying.


#17

My dad’s rate went through the roof when my parents got divorced FYI. He would have been 45 at the time, so I’m betting suspected mid-life crisis insurance.

As a 36yo married male with a brand new Crosstrek with one significant record ding in a large city I just paid ~$770 for six months. Since I’m married my wife has to be on the policy too.


#18

What was weird was Geico’s contortions for avoiding telling me the real reason for the rate hike. At first they told me it was because the yearly mileage guestimate I gave them. So I went back and did a much more precise (and substantially lower) estimate. They wouldn’t budge on the rate, and then told me the rate was due to the fact I work at multiple locations. At that point I said screw it and started getting estimates.


#19

sounds like some sales manager who is making up reasons so they make some target and get a bonus


#20

I paid that much and then some for a beater ass 1994 Nissan Altima about 5 years ago. The car died before I could get in my first accident 3 months later in my next car. It was totaled and I was found not at fault.

In my experience that’s good enough. My insurance didn’t even flinch on my ticket. Fines are just the tax for breaking the law ofc.

$20 more than my current coverage for a 17 year old car… Son of a bitch.