Let me just preface by saying: I totally understand that as a brand new driver living in a city, my rates are going to be high, and especially so if I want to finance a car.
However, I am being quoted between $600-1000+ per month (yes, per MONTH) everywhere. This seems unbelievably high to me, and everyone I've told about this just seemed flabbergasted (even the brokers I went to seemed surprised as they read off the quotes to me).
I've tried all the big ones (Geico, progressive, liberty, etc etc) and several smaller regional companies. I've gone to three independent insurance brokers in my area, and none of them were able to find me anything below $600-700/month. Even MAIP–a last resort as I understand–was close to $1,000/month. I'm not trying to finance a Tesla or anything either; these are the rates I get for things like a used 2016 Nissan sedan or similar.
Again, I understand that as a brand new driver financing any car my insurance is not going to be cheap. But I know plenty of people who shortly after getting licensed financed their first car and none of them had to pay anywhere near $600+ per month for insurance. Is this some kind of new normal in recent years or months? Or am I an anomaly here? Any advice on how to move forward?
Just obtained my license at age 28 and getting quoted $600-1000+ per month for auto (MA). Is this normal?
byu/zwig23 inInsurance
Posted by zwig23
16 Comments
Totally normal because you have no driving history.
Since you are very literally a brand new driver, yes. And you cannot compare yourself to what other people are paying. Insurance rates are based on dozens of factors. No two risk profiles are the same. Normally, your best option would be to contact a local independent insurance agent/broker and see if they can find anything reasonable for you. Sounds like you’ve already done that. And if they all came back with quotes in the same ballpark, then this might be what you’re stuck with.
Did you already buy the car? 600 per month + car payment = many Uber rides!
Could be, especially if you’re a single male with bad credit. Defensive driving course, higher deductible and/or an older (paid off) car might help significantly.
Consider getting a quote for non-owned auto liability only. If that is cheaper you could then keep that policy for 3-6 months to get a discount for “proof of prior insurance” which would hopefully provide discounted rates for when you own your own vehicle.
I used a Non-owned liability policy when I had a company car so that I would keep my record of ongoing insurance active and not end up paying multiples higher when I eventually had to purchase my own vehicle.
I like non-owned liability coverage too because in the situation you rent a car you don’t have to purchase their supplemental liability which can reduce car rental costs by ~15-20$/day + tax then if you have a credit card that covers the damage waiver that saves another 15-30$/day
If you’re a newly licensed driver, on your own, with no insurance history, and a financed vehicle that needs comp and collision, all of that is going to equal a very high premium. You’re just a high risk right now. If you feel you really need to have a car, all you can do is shop around for the best price you can get.
Something is not right here. I’m in NYC as a brand new driver and even then my EV was only $260/mo with comprehensive
This kind of sounds like absolutely insanity to me.. That’s how much a 6-month premium is for the average person.
Are you sure that you are not being told this 6-month right? Just wondering, when I first got my own insurance, I had a history of quite a few speeding tickets and my insurance is around $165 a month..
A best alternative is to buy a used car with no financing; then buy the minimum required insurance. That should be a lot cheaper.
What’s your credit like? Many companies take that into consideration as well. Did you take drivers ed or a defensive driving course?
The combination of being in a city, new license and no insurance history is ultra risky for an UW to approve anything low. Add in full coverage and that’s why you’re seeing these amounts most likely.
Sheesh. Another reason I’m creating my business. This knowledge should have been known before even going to see that car for the first time.
No driving history and your looking to finance.
19m 375 a month in FL liability only with a clean record is what my son just got for going to uni.
Buy a beater till you get some history driving.
What you might be able to do is a mobile app that’s in your car and connected to a smart phone as well as an online safety course (about 8 hours) to get a 10-15% discount. Also, if you pay for your insurance on a yearly or half a year basis you maybe a bit more discount. The BIG companies all Allstate, State Farm, Nationwide.
I just read an article that the average annual premium for a new driver in Massachusetts is $5045.84. The article doesn’t say the coverages so I’m assuming this is the average of state minimum limits with no liability and higher limits with physical damage coverage. That works out to a little over $400 a month. so adding in the physical damage and hopefully higher than state minimum limits, $600 a month would not be out of line. Also, the state minimum for property damage is $5000. Please don’t do that. 100,000 at minimum.
See what it would be with something like a fully paid off 2006 vehicle, that should show you the difference. Basically the risk of you being involved in an accident is very high, and newer cars are VERY expensive to repair. They are hedging their bets.
It may be worth buying an old, fully paid off (no loan) vehicle until you get a few years of driving experience first.
Yeah, they’re just financing your accident. In my experience, new drivers are 50/50 on an at fault in first 2 years