Are people under 30 supposed to just get fucked on car insurance ?

[tiglathpileser]

I'm 27, and there are no accidents. My last ticket was 4 years ago. I've needed a car for a while now and I can not find any reasonable insurance. I've looked at mutiple brands and price ranges, looking for a 2019 or newer, they've all been 2,000 - 4,000k for 6 month term. I can not afford a car if the insurance is almost the price of my car payment.

I unfortunately had a lapse in coverage back in November. I sold a car, and my agent canceled my poilcy but didn't tell me a lapse in coverage would cause an issue. I dont know if the lapse is causing an increase or not because that is displayed in the quote.

So I should just drive a cheap beater and try later this year to pay ?. I don't think it will get any cheape so I'm unsure if waiting will help.

 

[jriz]

@tiglathpileser Oh you are not being singled out except for not having insurance for the last while. That's what is driving your rate up. You should see it drop after the first six months or year. Maybe both.

Everyone else is also struggling with their car insurance math at the moment, too, and think that the insurance companies don't show their work well enough to justify the answer on their bills.

So that's fun.

 

[crystalgirl23]

@jriz Not really struggling over here I have 3 vehicles insured, one with full coverage for $300 a month at 25.

 

[bigluke67]

@tiglathpileser The lapse is the largest factor here. That will drive up your premium a lot. Keep an active policy and keep your record clean and your rate should drop significantly in a year or so.

 

[tiglathpileser]

@bigluke67 I'm trying to get confirmation that the laspe is what's causing the increase. Or is it just the cars Im looking at...if its the car waiting wont drop it probably

 

[bigluke67]

@tiglathpileser The car is going to play a factor in the price, but I guarantee the vast majority of that price is your lapse. I write policies on a daily basis and see this often. Even a one day lapse nowadays can easily double your premium.

 

[tiglathpileser]

@bigluke67 Yeah , it was 30 days lapse. I'm looking for a coupe mainy and they're all over $300 a month insurance wise. I paid $135 for a Mustang in 2019... now it's $330 for a 2024. I thought it was because the car is newer and more expensive but who knows. I'll probably have to buy another beater and see what rates I get in 4 months.

 

[bigluke67]

@tiglathpileser The insurance market is MUCH worse now in 2024 than it was in 2019. In 2019 I was paying about $80/month for my 2014 Acura ILX. Now I'm paying $120/month. No tickets, no accidents, no lapse in coverage. My GF has a brand new 2024 Honda HR-V, has an at fault accident in 2022 and a not at fault accident (totaled her car) a few months ago that our insurance paid out on both, totaling almost $35k paid out within 2 years. Even with all of that, her current premium is $165/month and she's had no lapse in coverage.

Coupes can be a bit higher than sedans too, but the lapse is the largest factor in your rate right now.

 

[tiglathpileser]

@bigluke67 Can I expect an improvement after 6 months, or do I need to wait a year ?. I think I've been insured since January, so it's almost been 6 months. This is why I thought the lapse isn't the biggest factor, but I trust your word. I figured it would drop by gradually bu now, but maybe you have to wait expect until 6 months or a little past it.

 

[bigluke67]

@tiglathpileser Policies are typically re-rated at each renewal, not midterm. So if you're on a 6 month policy, it will be re-rated every 6 months. If it's an annual policy, every year.

You typically see the best continuous insurance rate discount after 3 years, but you should start to see a difference at your next renewal. It's not a guarantee as there are too many individual factors to be able to predict your rate, but in my experience writing policies you should start to see the rate come down at your first policy renewal as long as your record stays clean with no tickets or accidents. It should level out to "normal" rates for a clean record after 3 years. Normal in quotes because the market is so volatile right now rates are higher for everyone.

For best results, find an independent agent. There are many insurance companies that only write through agents and don't direct write policies to customers. An independent agent will be able to shop you around with many different companies to find the best rate for you.

 

[tiglathpileser]

@bigluke67 " Policies are typically re-rated at each renewal, not midterm. So if you're on a 6 month policy, it will be re-rated every 6 months. If it's an annual policy, every year. "

I mainly ment when shopping around for new policies with different providers. Not the renewal of a current policy.

Thanks for the information...looks like I screwed either way.

 

[bigluke67]

@tiglathpileser Well all insurance companies can see your insurance history when they run LexisNexis reports, so they'll all see you've had a lapse recently in the past year and that will affect the rate they offer you.

It sucks, but it's basically a waiting game right now. When your policy comes up for renewal, try shopping again. I shop mine every year to make sure I'm getting the best rate I can find.

If you ever find yourself without a car again, before you cancel your insurance policy I would advise getting a non-owners policy first. It provides liability coverage for people that don't own or have regular access to a vehicle, and it also keeps your insurance history intact so you don't show a lapse when you wind up getting another vehicle on a standard owners policy. If you borrow someone else's car or rent a car, your non-owners policy provides liability coverage in your name. Non-owner policies are typically pretty cheap compared to an owner policy too.

 

[tiglathpileser]

@bigluke67 Thanks, yeah, I know about the non-owners policy now. The problem is that my past agent didn't tell me that BEFORE canceling my policy. So now my 10 years of constant coverage is erased and I'm in this BS situation.

 

[tigerleurlis]

@tiglathpileser your agent didn’t cancel your policy, you not paying your premium cancelled the policy, the agent can only cancel policies when you request it to be cancelled, lastly an agent doesn’t have time to remind customers to pay their bills,

 

[tiglathpileser]

@tigerleurlis This is why it's important to stop making assumptions on the internet...

I sold my car, I told the agent I sold my car, he said we should cancel the policy since I no longer owned the car, he didn't tell me that there would be consequences if me not having coverage while looking for another car, he didnt offer a named operator policy as an option.

He took ownership and said it was his fault, but he did no wrong ?

How did I miss a payment when the policy is on auto pay ?

 

[niclint]

@tiglathpileser Short answer: Yes.

 

[lifeguide72]

@tiglathpileser Buy a crap car and get liability only

 

[tiglathpileser]

@lifeguide72 That's what I had for the past 4 months, but that car gave out. I was thinking of getting into the market for a long-term car, but I might have to get another beater.

 

[greatful2god]

@tiglathpileser Find a beater for a year with liability and then get a newer car.

 

[earthsteps]

@tiglathpileser If you had a car for the past 4 months, was it not insured?