Big car insurance price jump- what next？

[vorosgy]

Hello!

I (25 y/o) totaled my first car last April (oof). It was a used 2012 Honda Civic with 70000 miles. At the time, I paid about $150 for full coverage car insurance.

Finally, after months of back and forth with the company to get my payout, I purchased a new 2023 Toyota Camry. I went to switch the vehicle covered by my insurance to the Camry (I hadn’t let the insurance lapse in the 8 months between cars), and my premium jumped to $380.

I know I did two things that would cause this jump: totaled a car (oof), and bought a new car with a high value and higher risk to the insurance company. Still, it was a bigger jump than expected.

So, is there anything I can do to lower the premium over the next year? Is there a certain timeframe where I could expect it to lower a bit? I’m just lost and my parents are not great with these things.

I know my financial choices are probably questionable (looking back, specifically choosing to buy a new car) but i’m young and am learning things retrospectively without a lot of help in my life. Thank you for any tips!

 

[bekuta]

@vorosgy you hit the nail on the head that a new car (likely with a lienholder/lease) has spiked the rate.

depends on your location, an at fault claim may fall off your record in ~ 3-5 years. just keep shopping around in the meantime.

 

[ayouzi]

@vorosgy I would shop around, see what immediate relief you can get while you wait. There isn’t really a huge benefit with sticking it out with your current company as long as you get an equally reputable company to replace them.

 

[vorosgy]

@ayouzi I’ve shopped around to 3-4 other places and the rates are still the same. I think i’m stuck for now, but i’ll look again each month. Does that sound right?

also, thanks!

 

[parrotsahayam]

@vorosgy You can always up the collision and comp deductibles and see how much that would save you in premium when shopping around. But be sure to put away that difference so you can afford to pay that deductible when shit happens. Adjusters constantly hear from people who can’t afford to pay their deductible, and some states let you go even higher than $1k