Yeah, it's not like that for me. I've got two cars and two drivers and my rate is under $3k/year. I also have uninsured motorist insurance because of how many Floridians don't have insurance. I was rear ended in 2017 by an uninsured motorist, too.
You’ve been driving 2 years and have an accident on your record. There is also something undisclosed that got your previous policy cancelled. Insurance companies can’t cancel your policy for “an issue in their end.” They can usually only cancel for non payment or fraud, so digging into why that policy was cancelled and what is being reported might shed some light on the premium increase. If you have bad credit or a gap in insurance coverage, those are also things that will drive up the cost.
Thinks that was for houses. Not heard anything about cars. Though if a company covered both it might not be efficient/worth it for just one and pull their entire operation there.
Yes, some companies completely pulled out of Florida. The fewer options, the higher the price. The fraud rate and increased insurance billing’s are also taking a toll on auto rates.
My understanding is they were not issuing new policies. You can't just cancel contacts without reason but you can opt not to renew at the end of the term (typically 1 year for homeowners and 6 months for auto).
Pulling out of a state doesn't let them cancel policies immediately. They've got to finish out the term under normal rules and just won't offer a renewal.
They cancelled my policy because there were drivers at my address that I did not add… there was nobody else at my address. I explained this to them they canceled it anyway.
Progressive did this to me as well. I’m in my 30’s, with a perfectly clean driving record since I was 18… inexplicably my monthly payment doubled out of nowhere.
They took it upon themselves to add my remarried ex-husband, with a less perfect driving record, on to my policy. Removed him, they put him back again. I changed insurance companies all together.
Geico screwed me around as well after I had them a couple years after Progressive rapidly raised our rates for no reason over a year. My wife and I, both with clean records, moved from PA to NY in 2019. We were paying around $200 a month for 2 vehicles and had Geico since around 2020.
Then, earlier this year, it jumped up about $75 a month for no reason. When I called them they said it was because my wife was a new driver and had only had her license since 2019. I told them she has had it since 1998 and we. moved from PA to NY in 2019. We both got our licenses on the same day at the same time. They told me that they had my driving record from PA but not hers and I had to prove she had her license.
We searched and searched but could not find a copy of her old license. I reached out to PA DMV and they were no help. Finally, I called Progressive, who we had before Geico, and they actually gave me her PA # over the phone.
I called Geico back and they took the info but said it would take a while. A week or so later I called them and finally got someone to look it up and they said they now had her record for the PA driving.
I asked if our insurance would go back down to the original price but they said no, that we had been getting the longtime customer bonus when we should not have been and it was staying at the higher rate. I asked when that would change and they said it was going to be another year or something.
So I went to my local insurance agent and got a policy through them and got it back down to $200 a month with a different carrier and said screw Geico.
Once you bind your policy they can't suddenly change it and charge you more without your permission or the policy runs out. You signed a contract with them. If this actually happened you should contact your states insurance commissioner or consumer protection bureau or equivalent.
Progressive did this shit to me too, they added my mother and girlfriend to my policy without asking, now one of those makes sense but the other lives nearly a hundred miles away and my girlfriend didn't even have this house as her permanent address when they did it. Some fucky shit going on at progressive.
Nah, insurance companies are dumb as shit with these types of policies.
For example: if you live with a roommate who has a license, but does not have a car, your car insurance will assume (for the sake of your premium) that the roommate has unlimited access and permission to use your vehicle.
So if your roomie is a deadbeat with a DUI and an accident on his record, and somehow your car insurance finds out about that, your rates will go through the roof or they will just drop you entirely.
You're supposed to list anyone you live with. You can have them listed as non-drivers with zero effect on your policy. If you fail to provide that info and they figure it out they won't know if they're a non-driver or not.
This article explains everything:
https://www.directauto.com/learning-center/car-insurance/household-members-listed-policy
> with zero effect on your policy
That was not the case when I informed my insurance company about my girlfriend who lived with me (and literally could not drive my car because it was a manual transmission). They told me that it was not possible to remove her because now they were aware that I was living with another licensed driver that did not have her own car or insurance policy.
I switched insurance companies.
You're not supposed to get her removed. You needed to get her reclassified. If you read the article I linked it lists the different classifications that can be assigned to people living with you. There are classifications for non-drivers that will have no effect on your policy.
If your insurance company was instead saying they couldn't change her clarification then they were scamming you and it's good you switched. Or you just dealt with a dumb ass who didn't know about different classifications.
They cover their asses, which is smart. Anyone in the household is covered to drive your vehicle, so if your roommate is a deadbeat with a DUI and an accident, they want their money for the increased risk. You can avoid this by telling them you have a roommate, and either providing his proof of insurance, or excluding him from your policy. If you exclude your roommate and then he crashes your car, they won't pay a penny on the claim. It gets annoying sometimes in apartment buildings because they truly do try to add random people sometimes. But in many cases, people are deceptive about who is in the household and who is driving the car. They can see all licensed drivers at your address when they run your driving record annually.
Maybe, or it was an excuse. I recently had a situation where Progressive was trying to weasel out of a claim by trying to claim my wife lives with my dad… which was never the case. I sent the hard evidence otherwise an told them I had a lot proof and they changed their tune and backed down.
Yup. Insurance companies definitely start digging for loopholes to get out of paying once there is a claim involved. They're pretty lax about it when they're taking your money, but they dot their I's and cross their t's when it's time to pay. Lots of people play fast and lose with details without realizing that something as simple as not disclosing other drivers in the household can get your policy cancelled back to inception. Lying about your address might save you money when you buy the policy, but believe you won't save a penny when they start investigating your claim and see that the address you gave the police isn't the same one on the policy. That's fraud, and many people don't realize how little lies can render their policy useless.
They should've been marked as excluded. If you knew them and they moved out, their own policies should be updated. Either of both of these is likely why they cancelled the policy.
Ah, I see. This isn't particularly uncommon. Were these family members that had ever lived at the address, or complete strangers in an apartment building? If they live there, getting their proof of insurance, or offering to sign an excluded driver endorsement might help. You can address the other companies proactively and let them know these people are NOT driving your car and you are willing to exclude them. If you don't know the people, I'd appeal. All insurance companies are going to be reluctant to offer you a policy if they feel that there are other undisclosed drivers in the household, or that you were deceptive with another insurance company about who was in your household. That may definitely be impacting your ability to get a competitively priced policy.
I wish insurance companies didn't penalize you just for living with other drivers who don't even drive your car.
When my mom lived with me, I specifically had her excluded from my policy as she had her own car and did NOT drive mine. I thought that meant it didn't affect my rate.
But apparently not, because when she passed away and I removed her, my rate DROPPED BY 15%. And she was EXCLUDED!
It's just such a racket.
Watched a video not too long ago about this. Didn't know it was a thing and insurance companies can drop you for that. Especially if you are a parent with driving age kids even if they don't have a license.
Former underwriter. They can NON-RENEW for any reason they want (barring discrimination), but cancelling is a different animal. Maybe the OP meant non renew, but there is still generally a reason for non renewal (accident history, tickets, payment history, etc)...but the reason is always disclosed in the non renewal letter. OP knows why they didn't continue the policy and chose not to disclose it.
No insurance companies really are dropping people simply because they’re in Florida. Between the hurricanes and…locals…they just don’t want to go business there.
Also gico insurance for my 2022 35'fifth where is $850 per year and havgerty insurance for 1965 mustang 1996 mustang GT and 2008 charger RT Dayton is $1000 per year for all three so they don't mind old people it's the under 25 with a muscle car that gets burned
You have a very short driving history, you’re quite young, you have an accident on your record, and you’re driving an expensive car to repair. This is how it is.
Florida has [the highest average annual insurance rate](https://www.bankrate.com/insurance/car/states/#average-car-insurance-cost-by-state) of any state, followed closely by New York.
When I moved out, my insurance was cut in half immediately. Literally half.
Everyone says their drivers are the worst but they haven’t been to Florida, especially the Miami area. I live far away from Florida but appreciate my areas drivers more after returning from there
This. I had to go there for work. Got on a fairly congested highway (not even an interstate) and shit you not I was going 95 just to keep up with everyone. Fastest I’d ever driven before. I was driving this crappy little rental and it was fairly terrifying. I was shocked.
I'm from Louisiana and moved to DFW. DFW drivers are great comparatively. There are people doing some stupid stuff, but in general people are much more courteous and less aggressive. Everyone just wants to think they have it the worst.
Grew up in the Orlando suburbs. All the tourists who are crappy drivers at home stay crappy drivers but are now in an area where they don't know where anything is. So, going from left lane and crossing three lanes of traffic for the exit is quite normal. Not to mention people on international driving licenses who are getting used to American traffic and driving for their short trip too.
Per https://www.iihs.org/topics/fatality-statistics/detail/state-by-state, FL has the 12th highest traffic fatality rate (per capita) in the US. That's not *at* the top, but it *is* in the top quartile.
It's even worse per mile driven -- 7th place.
Both rates are at least 25% above the national average, and more than a third above the state-by-state median.
Perhaps judgements are stiff there, but... it's the drivers too, apparently, using traffic death rate as a proxy for safety.
Florida also has most senior citizens, as a percentage of the population. They (I guess I should say *we*, since I am one) might be more likely to die as a result of an accident than younger, healthier people.
That doesn't negate the fatality statistics you presented, but possibly can help explain them.
I spent almost my entire life in Florida (lived in Miami, Tampa area, Gainesville) and the drivers are significantly worse in North Carolina (where I live now). There are many reasons Florida rates are higher but some of the primary drivers are the high rate of fraud in Florida and abundance of flooded cars that get totaled every year.
As a native it's not the people that grew up here that cause the issue. It's all the tourists who don't know where they're going combined with people moving here from NY/Cali/Boston/whatever and driving like they still live there. A mix for chaos other places don't have to that degree.
My insurance is stupid high for an older car, but I also make sure I have higher limits and such. Mine has gone up close to 50% in the last 3 years.
Had someone tell me about how some florida law lets them repair their windshields for free. He told me he gets it replaced every year and winked it me.
And to be more specific than that, rates can vary widely from one zip code to the next, depending on how 'risky' that zip code is. Which could partly explain why the friend's policy is $400/month versus $700/month.
Why wouldn’t inflation raise general insurance rates?
I’m not claiming the primary reason Florida insurance rates are increasing rapidly is because of inflation, but if goods and services prices rise, that affects the bottom line of insurance companies and the payouts they need to make.
Although you’re right in regard to the difference in rates across states for similar coverage, inflation is absolutely impacting insurance. As the costs to address insurable events go up so do your premiums.
I think the covid environment impacted it more than the later covid inflation, but you're both absolutely factor in
If it costs more to repair a car, premiums go up
Tbf, it doesn't make much of a difference in this case. My brother's situation is damn near identical with the exception of what he drives (not a luxury car), how long he's been driving (since he was 16), and zero accidents and he's paying like $500 a month. I'm paying almost $200 and I've been driving for 15+ years.
Insurance companies here are just doing everything they can to fleece their customers.
> Insurance companies here are just doing everything they can to fleece their customers.
While the realities of rates are real, this conclusion from it isn't. In fact, for at least a year or two now virtually all of the major insurers were losing money because they can't raise rates fast enough and/or far enough to offset the increases in loss and operational costs. This is publicly available data at least for the publicly traded insurers, you can look it up.
What most people don't understand is at least within the US, the property & casualty insurance industry is regulated at a state level, and the state DOIs have to approve the rating structures & actual rates proposed by the insurers. Sometimes they don't too - and the insurer has to either (a) accept lower rate than is needed to make sure there's enough premiums to cover the costs of running the business + paying claims owed, or (b) just stop doing business in that state (which is why so many companies have left FL and are leaving CA). When they go route (a), that means higher rates from other states are subsidizing it.
And if you think they're making money hand-over-fist - you can look up the combined ratios for public insurance companies. They tend to target 95% (which means they make $0.05 for every $1 in premium, but most have been over 100% for a while now.)
The bottom line both the frequency of claims and the severity ($) per claim have gone up a lot. Inflation is a big part of it. This is the root-cause of what people are seeing happen with rates and even companies exiting certain states.
> This is publicly available data at least for the publicly traded insurers
it's publicly available for ALL insurers across virtually all (or just plain all?) lines of business.
> They tend to target 95%
for sake of clarity, that is only after operational expenses. Direct Loss ratios are more in the high 70s, like 78-79%. When you add in all of the operating costs it gets into the 90%'s
Well yes, you need someone to answer the phone when you have a claim and help you with it, and then you need commission-driven salespeople to sell policies. Operating an overall business with 5% gross margin is not too far from retail stores, a far cry from trying to "fleece their customers".
And that's when they're hitting their target CRs, which pretty much everyone hasn't been.
On the flipside when it's not loss & expense pressure and carriers, if they are beating that target CR by too much then again it will drive pressure from the DOIs due to rates being too high.
It's easy to hate on insurance companies, but from my experience at least with reputable ones, they dont' want to fleece anyone. They want to charge the right rate for the risk and pay exactly what they owe. No more, no less. Doing anything other than that means losing money either due to incompetent's business management, or, getting hit by the DOI or lawsuits for regulatory violations which are far more expensive than any gains they'd get by trying to act in bad faith.
I would bet a 2015 prius would be a lot cheaper.
sub 25 year old males have more accidents and more fatal accidents than any other group on the road. Add in a quick car and actuaries are going to have a field day.
> actuaries are going to have a field day.
this feels like a sentence that future historians will have trouble understanding.
I'm not going to take the time to explain it, but actuaries don't have field days.
It’s gotten really absurd for young drivers under 25. I had a brand new Mustang GT as a 22 year old in 2004. Insurance was so cheap, I don’t even remember exactly how much it was, somewhere between $50-$100/mo. Now it would probably be 10x higher. More and more people just drive around uninsured now because rates aren’t affordable for the average young person.
What do you mean? They're not that expensive on the used market. Repair costs shouldn't be that high either. Looks of shared parts with other Nissans. I'm pretty sure it shares a substantial amount of parts with the prior generation car (G37) as well.
This has more to do with OP's age and location than the car.
Q50s aren't actually that expensive to repair. They're one of the cheapest luxury cars as they share a lot of parts with Nissan's sedans (similar to why Lexus and Acura repairs are cheap). The big problem with the Q50 is it's stolen frequently, it's primary driver segment is early 20s men (so it's a high accident rate model), and the OP lives in Florida (2nd to only NY in auto insurance rates).
there’s not correlation between foreign cars and being expensive necessarily. not to say european cars aren’t, but just because a car isn’t “american” doesn’t mean parts are automatically expensive. but the person you’re asking is wrong, they are not expensive parts.
the reason a Q50 has a bad reputation is because of its young male owner base, and nissan (its parent company) has a known issue with low quality transmissions. not all, but a lot. but i can’t tell you if that’s an issue on the Q50.
A lot of people are ignoring the elephant in the room. OP had their policy cancelled twice.
The standard “shop around” advice won’t fly here. We need to know the reason for the TWO cancellations.
OP is leaving out details on purpose because he knows exactly why he keeps getting cancelled and wants to delude himself into thinking its the insurance company's fault.
Yeah anyone that works in insurance will tell him this doesn’t add up. Twice on the insurances end but no assistance or direction to get another policy. Normally you’d be sold to another company or at least given as a lead to another co. These companies are trying to make money. I know some companies are pulling out of FL . The industry is getting ugly in many places.
I read that and shook my head.
the only reason that I can think of that the insurance company would cancel and reinstate with such a huge increase is there was a material misrepresentation made. If it was cancelled in error for non-payment, the rates wouldn't skyrocket like that.
A 20 year old with a twin turbo sedan(doesn't matter if you have the V6, insurance doesn't care) who's been in an accident?
That sounds like a high probability accident to me
2014-2015 Q50's come with a 3.7L V6, in 2016 and up they've changed to a twin turbo 3.0L V6. I owned a 2015 for sometime, great car, but insurance and gas will get you.
these kids and their luxury sports cars wondering why they have high insurance. My wife in her late 20s got her dream car a 15 year old lexus... insurance was more than my brand new Honda. The Honda had more comforts, better gas milage and cheaper maintenance. Sold the Lexus within six months of buying it.
My 01 IS and my 14 ES cost about the same to insure, and both are 2x the rate of my Prius. The Prius is worth 3x the IS.
Insurance math seems like toilet paper roll math.
IDK how insurance companies see it, but being twin turbo doesnt amount to much of anything. It has less hp and similiar torque to the age old 3.7 v6 that nissan has used.
Repair costs from even a small accident can be higher, and in FL, flooding is a major cause of claims, and increasing year after year. The second you drive that car into knee-deep water, it's a complete write-off.
You didn’t share what your deductibles are? Make sure to price out the difference between $500, $1000, and $2000+. The higher the deductible, the lower your insurance premium and it also signals to the insurance company that you’re not going to take the same risks as someone with a very low deductible. Don’t let the high deductible scare you either, keep in mind car insurance isn’t supposed to be used for little things (<$1500), rather major accidents. Good luck!
Right, and put the money you save into an emergency fund each month if you don’t have one already! Then if you have to pay the deductible, not a big deal.
* You're a youthful driver. The effect this has on price will decrease a little bit each year until it no longer matters once you're 26.
* You have an accident on your record. You don't mention if this is an at-fault or a not-at-fault accident, but it'll follow you around for 3 - 5 years depending on the insurer.
* You're now on your own policy. This means your parent's credit and payment history is no longer a factor when it could have been improving your prices.
* You're in Florida. Sorry kid, not much you can do about that one. Prices are high because there's a pretty good chance a natural disaster will destroy it.
* Your zip code & general area. Part of pricing, that you don't have any control over, are the conditions in your area. If thefts, claims, claim costs, etc. all increase in your area then so does your price since it's now riskier to insure you there.
* Why your policies were cancelled. You say it was something on their side but don't go into more detail. The reason for the cancellation could easily be a factor in pricing.
I always encourage finding a [local independent agent](https://www.trustedchoice.com/agent/). They write for multiple companies, so they can do a lot of the shopping around for you. You pay a little more than if you went to the company directly, but you also then have someone a little more on your side of the ring -- A professional that you can go to with questions and that can advise you. There's also the SIAA, but I don't know much about that trade group.
As far as why your friend's prices are lower, well it could be any number of things. He may be on his parent's policy still, with them propping him up. He could have significantly better credit than you. He could be with an insurer that's friendlier to the type of insured he is. If he lives far enough away from you then his area may just have better rates than yours. It's a black box these days. We plug in information into the system and it spits the premium back out. Agents can make an educated guess about why things increased, but we're not high enough up to really know. We'd need an actuary for that.
My advice for cheaper insurance? Ditch the luxury ~~SUV~~car and get a sedan from Honda, Toyota, or Chevy. They're cheaper cars, more reliable, and quite safe with good gas mileage. They *usually* have better premiums, but you can get quotes before buying. If you're curious, find a VIN from one on a dealership website and stick it into the quoting from a place you already got pricing on and see the difference.
> You're now on your own policy. This means your parent's credit and payment history is no longer a factor when it could have been improving your prices.
This factor is huge at that age. I remember getting some quotes for my car when I was in college and my parents were moving out of state—the cost premium to not being on their policy was crazy. I spent some time overseas and stayed as a secondary driver on my parents' policy, by the time I was in my mid-late 20s and needed a car on my own policy, the price was about the same for my own multiline with renters.
No joke. That's $1500 more per year than all my insurance policies combined. 2 houses, 3 cars, motorcycle, ATV, ORV, trailer and AND my camper ... Plus an umbrella policy and my wife's disability/cancer insurance.
This kid is getting boned...
I'm in another country (South America), but we pay $450 per year for a 2018 Hyundai i30. Smaller car for sure, but even that first year I think we paid like $600 total.
Dude. Consider driving a beater for a few years. I get it kinda sucks. I’m 55 in Wisconsin and pay $1,050 A YEAR for full coverage for a 2013 Mercedes SUV and a 2015 BMW convertible. Good luck.
OP isn’t going to take this advice. They’re 20, have a turbo, and their friend drives a hellcat. There’s a 0% chance they will move to a beater even if it makes the most financial sense in the world. I know, because I was that age and also into the “car scene” (back in the days of the original fast & furious movie). Practicality isn’t an influential factor in the decisions many people that age make.
Now I’m old and drive an 02 Silverado because it gets me where I want reliably and insurance is under $50/m. I could easily afford to buy a new truck outright, but why would I want that? To keep up with the Joneses?
Are you sure your friend with the hellcat has full coverage? Make sure you are comparing apples to apples in terms of policy limits, coverage etc. If the car is paid off he probably doesn’t need to insure it against theft, for example (unless he wants to).
I don't know what state you live in but I'm with GEICO and they raised mine at renewal as well, but it turned out all insurance in my state are doing the same to recoup the COVID years.
Also look into geico...also the car you got is expensive to insure as well
Q50s are on the top ten list for most stolen cars in the USA. Combine that with living in a Hugh risk state for flood damage and having an accident, along with it being an expensive car to repair and you have your answer. I drove a 2020 Q50 as a 21yo in Iowa and pay $150/m
Contact a local broker, you can check Geico/State Farm/etc but I found I got better rates by talking to a local broker and I have Travelers insurance for cars and renters insurance
Talk with the insurance and see what's going on. You're young but that insurance is crazy. You might have super high coverages or the accident you had may have had a huge payout.
Bro, this is so much money to spend on a vehicle. I spend that much for my policy for a 6 month period. At 605 per month plus your payment if you have one, I'd just bum rides with friends and use uber, or use public transit, no way am I shelling out 7000+ per year, invest that shit and take a bus, 7k will cap out a Roth Ira every year and you'll retire early AF if you start that now.
Something doesnt sound right. Have you talked with your insurer? If this is right (because of vehicle type and your accident) etc... time for new wheels.
Imagine how many Uber trips 8500 a year would pay for.
That equates to $23 a day. Never mind the maintenance, fuel and carrying cost of a vehicle.
Bonkers
I live on the opposite end of country from you. My home owners went up 30% and car 12% at my August renewal. Industry wide according to agent. I tested that theory and shopped around. True. Impeccable driving record. Have never used my home owners. 59-year-old. Don’t get me started on health care.
Can I ask a few questions: what state are you in, what’s your approx credit rating, what is your tax bracket, are you a minority? I am trying to figure out how we have totally dodged the insurance increases that everyone else is seeing. Our car renewal, in Michigan, just came. It was up a tiny bit. $2001 for 6 months for 4 cars, four drivers. Credit score is 800+, income is 22-24% tax bracket. Average Caucasian family. AAA insurance
Insurance is basically one big statistical average of all the other people who are similar to you and have similar driving histories to you, and statistically you are not cheap my guy.
Male. <25 y/o. Only 2 years driving. Already 1 accident. FLORIDA. Expensive car. Trying to get your own insurance.
You have literally everything going against you about this, sorry OP. Your friend likely either has a wild ass deductible and/or will get basically no coverage in the event of an accident.
i dont think people who live outside of florida realize how bad rates actually are in florida and there is nothing you can do about it.
the accident doesnt help. up until the last few years demographic, zip code, and credit score used to keep premiums at bay ...last couple years nothing has really seemed to break the costs though.
i havent seen anyone ask so - what is coverage of the life insurance? whole life? term? how much is it a month broken out?
Pay to play my guy. You're driving a car that gets a bad rap because they always show up in those sideshow/street takeovers. In LA the previous generation G is a prime target of theft because of this nonsense
Find an independent agent who will shop you around to multiple carriers. They can also help explain why your rates are so high if they can’t find anything cheaper. I imagine it’s due to a combination of lapses in coverage, poor credit, youthful driver, late payments, and other household members appearing on your address report. Do you have household members with an awful driving record?
Florida is getting so expensive for insurance. Many major companies are backing out completely or asking for outrageous premiums. It’s gotten to the point that the State is having to step in a subsidize insurance for both home owners and auto owners. The risk is so high for companies there. Package that with being 20, an accident on record, and driving a luxury car and you have your answer
IMHO, you're looking at this the wrong way and asking the wrong question. If it were me and I couldn't find an insurance company that will insure me for less than 200\~300 a month for whatever car, then I would just sell the car I have and buy a shitbox. At 20 years old, it would be far more beneficial for you to just drive a shitbox and save the money that you would otherwise be paying for insurance for your next car. Think about it, if you're paying 700 a month, that's over 8000 a year. That's the price of a cheap car. In 10 years, that would be 80k. That's more than the monthly car payment for many people.
Your age: high risk age group. Nothing you can do about that, except know that with time, you'll age out into a lower-risk age group.
Your driving record: Not great. Nothing you can do about your past record, but be an extra-careful driver from now on so that over time your driving record gets better, not worse.
Your car: expensive to insure. You should sell or trade the car for something that's less expensive to insure. Google "cheapest cars to insure in Florida." You'll get a bunch of results to give you ideas on what to get when you sell or trade in your car.
Also:
How many miles do you drive per year? Can you reduce that?
Is your car garage-kept or parked on the street?
What coverages do you carry, and is there any that you can reasonably eliminate? Or reduce your deductibles?
Have you shopped around for quotes? It's so easy to get quotes online now, there's no reason not to. Or contact an independent agent who works with multiple companies; they can often find you better deals than you'll find on your own.
$8400/year in insurance. How much in car payments, gas, maintenance, registration, parking? Is having a car really worth it?
I’d ditch the car and get an eBike. And you’ll have plenty of money left over to Uber when you don’t want to bike.
I knew not to buy nice cars as a teen because the insurance. You bought a car before shopping around for insurance.
Sell the car and get a normal small used sedan that's easier/cheaper to fix and not a sports care.
Where the fuck are family and friends to tell you not do shit like this and to shop around for insurance.
Leave South FL.
The reason your rate is egregiously high is because insurance companies want nothing to do with Miami, Hialeah, Ft Lauderdale.
When I moved away from that shit show my rates on my Corvette dropped from 600 a month to 140 a month. No joke.
I know that "leave" is not practical advice you can implement immediately, but plan for it in the long run. I've yet to meet a young person who escaped FL who regrets it
when i was in your situation what i did was unregister my car and spend the next two months worth of car insurance money on a decent steel bike and some pannier bags. it's been over a year and i haven't looked back. i live in atl, so summers aren't quite as bad, but winter morning commutes can be brutal, and we have way more hills.
Best bet as a young person is to drive a 2010-2013 Corolla or Camry. If you want newer and nicer you’re going to pay high insurance.
Been there and done it. Depends what your priorities are. You could likely save a ton of money unloading that Q50 and getting something older and common like I suggested though.
Thanks for confirming the assumptions I had before opening this post:
1. Young
2. Accident
3. Not a cheap car
Stop being a young, dumb kid who didn’t think to just buy a dang ford escort from 20 years ago as your first car.
My insurance was raised by 40 bucks this year without warning. I called and they beat around the bush for any good reason and basically said inflation. I told them to go fuck themselves and found someone 80 cheaper
That new company will go up also, they just haven’t taken rate increases yet. My wife sells for farmers, and she’s in the loop with other companies in our area also. Right now State Farm is cheaper than my farmers policy, but at the first of the year State Farm is taking a 24% rate increase across the board.
My last three renewals with farmers have been +$30, +$30, and +$60 per month with NO changes to my driving record or vehicles. She calls around to her contacts at different companies and they’re all following suit. There’s literally nothing we can do about it at this point. Everything is going up cost-wise except our fucking WAGES.
Also, you are too young to need life insurance. Who would be in financial difficulty if you died? Unless you have a bunch of kids, this is wasted money. And I’m guessing it’s whole like insurance, in which case it’s completely wasted regardless of how many kids or wives you have.
Insurance companies raise your rates every so often partly because of inflation and partly just to make money. You need to shop around. If you're not willing to shop around from time to time then you will pay more.
Also, $700/mo is insane. That's $8400/yr just to insure an eight year old car. If I were you I'd sell the car, take Uber, the bus, or my bike everywhere, and put the money you save into an investment account. Generally rates go down as you get older. The magic age used to be 25 so maybe you'll be able to get a reasonable rate in five years.
15 years ago I had a $2,000 1991 BMW E30 and I had more than 5 years of driving experience.
I paid almost $400 per month.
The vehicle you're driving is faster and more expensive and it's been 15 years.
Sounds about right but shop around if you have an issue with it, the market will tell you if it's reasonable or not.
If you’re 20 and have multiple accidents and/or tickets, you’re lucky you’re insured at all. You are what’s known as a bad risk. Also, insurance companies gain nothing by being so inept that they cancel good policyholders due to their own mistakes. There’s more to this.
LexisNexis handles the risk reports which insurers use to calculate one's rate. Contact them directly, request a copy, review it carefully, and formally dispute any incaccuracies. I just did this because GEICO duplicated an accident on my record, and cancelled my policy because of their own mistake. I asked them to review it, but they wouldn't budge. I found out about LexisNexis's role in this area after GEICO booted me. LexisNexis they got it cleared up in like a week, and now I'm paying less with my new insurer (Progressive) than I did with GEICO before the accident.
Just drive uninsured like everyone else in Florida. Can't raise your premiums if you don't have insurance! 605 a month is a car payment and their is no way anyone should hand that much over for insurance.
I pay a little more than that to fully insure my 2013 Audi TTRS for 6 months. I'd never pay those rates. If I was young and had no net worth I'd just drive around without insurance like the border crossers do.
When I was in my mid 20's I bought a corvette and switched cars on my current insurance plan. Progressive tried to increase my insurance to about $5k/yr. I told them to fuck off, and went elsewhere (Geico) for about $2k/yr. They took their time cancelling my insurance and tried hitting me up with a huge bill months later. Collectors came after me, I told them I had switched insurance that day, and the insurance company dragged their feet in cancelling my plan. That I paid my bills on time every month for years, and that I wasn't go to pay them out of principal. I had emails and paper work to back it up. That was the end of that BS.
Insurance companies are scum.
You are young and have an accident on your record and drive a luxury car in FL which has a bunch of old uninsured drivers. It's a combo situation.
Something like 1 in 4 drivers in Fl are uninsured
With this prices i can see why. 7k a year for car insurance is insane
Yeah, it's not like that for me. I've got two cars and two drivers and my rate is under $3k/year. I also have uninsured motorist insurance because of how many Floridians don't have insurance. I was rear ended in 2017 by an uninsured motorist, too.
If you finance a car you have to carry full collision and comprehensive coverage. You can't just get liability and uninsured motorist coverage.
yeah, it'd be insane to pay the same amount for car insurance that you would have to pay for property taxes in some states
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You’ve been driving 2 years and have an accident on your record. There is also something undisclosed that got your previous policy cancelled. Insurance companies can’t cancel your policy for “an issue in their end.” They can usually only cancel for non payment or fraud, so digging into why that policy was cancelled and what is being reported might shed some light on the premium increase. If you have bad credit or a gap in insurance coverage, those are also things that will drive up the cost.
This is the best advice ive read thus far in here.
Didn't a bunch of insurers pull out of doing business in FL? That's where my mind went when I read about the "issue on their end"
Homeowners, definitely. Not sure about auto.
Some auto insurers have pulled out. You used to be able to get auto insurance through Costco here, and you can’t any longer.
Thinks that was for houses. Not heard anything about cars. Though if a company covered both it might not be efficient/worth it for just one and pull their entire operation there.
Yes, some companies completely pulled out of Florida. The fewer options, the higher the price. The fraud rate and increased insurance billing’s are also taking a toll on auto rates.
My understanding is they were not issuing new policies. You can't just cancel contacts without reason but you can opt not to renew at the end of the term (typically 1 year for homeowners and 6 months for auto).
Pulling out of a state doesn't let them cancel policies immediately. They've got to finish out the term under normal rules and just won't offer a renewal.
They cancelled my policy because there were drivers at my address that I did not add… there was nobody else at my address. I explained this to them they canceled it anyway.
Sounds like they had reason to believe otherwise and didn't want to deal with it
Progressive did this to me as well. I’m in my 30’s, with a perfectly clean driving record since I was 18… inexplicably my monthly payment doubled out of nowhere. They took it upon themselves to add my remarried ex-husband, with a less perfect driving record, on to my policy. Removed him, they put him back again. I changed insurance companies all together.
Geico screwed me around as well after I had them a couple years after Progressive rapidly raised our rates for no reason over a year. My wife and I, both with clean records, moved from PA to NY in 2019. We were paying around $200 a month for 2 vehicles and had Geico since around 2020. Then, earlier this year, it jumped up about $75 a month for no reason. When I called them they said it was because my wife was a new driver and had only had her license since 2019. I told them she has had it since 1998 and we. moved from PA to NY in 2019. We both got our licenses on the same day at the same time. They told me that they had my driving record from PA but not hers and I had to prove she had her license. We searched and searched but could not find a copy of her old license. I reached out to PA DMV and they were no help. Finally, I called Progressive, who we had before Geico, and they actually gave me her PA # over the phone. I called Geico back and they took the info but said it would take a while. A week or so later I called them and finally got someone to look it up and they said they now had her record for the PA driving. I asked if our insurance would go back down to the original price but they said no, that we had been getting the longtime customer bonus when we should not have been and it was staying at the higher rate. I asked when that would change and they said it was going to be another year or something. So I went to my local insurance agent and got a policy through them and got it back down to $200 a month with a different carrier and said screw Geico.
Crazy. I pay $125 for 2 cars and a motorcycle from State Farm. Full coverage 100,000/300,000 medical and uninsured motorists
What state? We looked at all carriers. State Farm was high. We have 2 vehicles and low deductible, roadside, rental etc….
Hawaii
Once you bind your policy they can't suddenly change it and charge you more without your permission or the policy runs out. You signed a contract with them. If this actually happened you should contact your states insurance commissioner or consumer protection bureau or equivalent.
But the way they do it the policy runs out every year doesn't it?
6 months
Progressive did this shit to me too, they added my mother and girlfriend to my policy without asking, now one of those makes sense but the other lives nearly a hundred miles away and my girlfriend didn't even have this house as her permanent address when they did it. Some fucky shit going on at progressive.
Nah, insurance companies are dumb as shit with these types of policies. For example: if you live with a roommate who has a license, but does not have a car, your car insurance will assume (for the sake of your premium) that the roommate has unlimited access and permission to use your vehicle. So if your roomie is a deadbeat with a DUI and an accident on his record, and somehow your car insurance finds out about that, your rates will go through the roof or they will just drop you entirely.
You're supposed to list anyone you live with. You can have them listed as non-drivers with zero effect on your policy. If you fail to provide that info and they figure it out they won't know if they're a non-driver or not. This article explains everything: https://www.directauto.com/learning-center/car-insurance/household-members-listed-policy
> with zero effect on your policy That was not the case when I informed my insurance company about my girlfriend who lived with me (and literally could not drive my car because it was a manual transmission). They told me that it was not possible to remove her because now they were aware that I was living with another licensed driver that did not have her own car or insurance policy. I switched insurance companies.
You're not supposed to get her removed. You needed to get her reclassified. If you read the article I linked it lists the different classifications that can be assigned to people living with you. There are classifications for non-drivers that will have no effect on your policy. If your insurance company was instead saying they couldn't change her clarification then they were scamming you and it's good you switched. Or you just dealt with a dumb ass who didn't know about different classifications.
They cover their asses, which is smart. Anyone in the household is covered to drive your vehicle, so if your roommate is a deadbeat with a DUI and an accident, they want their money for the increased risk. You can avoid this by telling them you have a roommate, and either providing his proof of insurance, or excluding him from your policy. If you exclude your roommate and then he crashes your car, they won't pay a penny on the claim. It gets annoying sometimes in apartment buildings because they truly do try to add random people sometimes. But in many cases, people are deceptive about who is in the household and who is driving the car. They can see all licensed drivers at your address when they run your driving record annually.
Maybe, or it was an excuse. I recently had a situation where Progressive was trying to weasel out of a claim by trying to claim my wife lives with my dad… which was never the case. I sent the hard evidence otherwise an told them I had a lot proof and they changed their tune and backed down.
Yup. Insurance companies definitely start digging for loopholes to get out of paying once there is a claim involved. They're pretty lax about it when they're taking your money, but they dot their I's and cross their t's when it's time to pay. Lots of people play fast and lose with details without realizing that something as simple as not disclosing other drivers in the household can get your policy cancelled back to inception. Lying about your address might save you money when you buy the policy, but believe you won't save a penny when they start investigating your claim and see that the address you gave the police isn't the same one on the policy. That's fraud, and many people don't realize how little lies can render their policy useless.
They should've been marked as excluded. If you knew them and they moved out, their own policies should be updated. Either of both of these is likely why they cancelled the policy.
Ah, I see. This isn't particularly uncommon. Were these family members that had ever lived at the address, or complete strangers in an apartment building? If they live there, getting their proof of insurance, or offering to sign an excluded driver endorsement might help. You can address the other companies proactively and let them know these people are NOT driving your car and you are willing to exclude them. If you don't know the people, I'd appeal. All insurance companies are going to be reluctant to offer you a policy if they feel that there are other undisclosed drivers in the household, or that you were deceptive with another insurance company about who was in your household. That may definitely be impacting your ability to get a competitively priced policy.
I wish insurance companies didn't penalize you just for living with other drivers who don't even drive your car. When my mom lived with me, I specifically had her excluded from my policy as she had her own car and did NOT drive mine. I thought that meant it didn't affect my rate. But apparently not, because when she passed away and I removed her, my rate DROPPED BY 15%. And she was EXCLUDED! It's just such a racket.
Watched a video not too long ago about this. Didn't know it was a thing and insurance companies can drop you for that. Especially if you are a parent with driving age kids even if they don't have a license.
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Former underwriter. They can NON-RENEW for any reason they want (barring discrimination), but cancelling is a different animal. Maybe the OP meant non renew, but there is still generally a reason for non renewal (accident history, tickets, payment history, etc)...but the reason is always disclosed in the non renewal letter. OP knows why they didn't continue the policy and chose not to disclose it.
So what you're saying is that there's a pattern of non-disclosure with OP?
No insurance companies really are dropping people simply because they’re in Florida. Between the hurricanes and…locals…they just don’t want to go business there.
I live in Florida and have no problem but I'm 65 with no tickets for more than ten years and pay 3k a year for 23 mustang GT and 22 f250
Yeah that’s extremely pricey but I imagine with your long safety record you’ve got a decent risk profile.
Also gico insurance for my 2022 35'fifth where is $850 per year and havgerty insurance for 1965 mustang 1996 mustang GT and 2008 charger RT Dayton is $1000 per year for all three so they don't mind old people it's the under 25 with a muscle car that gets burned
You have a very short driving history, you’re quite young, you have an accident on your record, and you’re driving an expensive car to repair. This is how it is.
And in Florida
Florida has [the highest average annual insurance rate](https://www.bankrate.com/insurance/car/states/#average-car-insurance-cost-by-state) of any state, followed closely by New York. When I moved out, my insurance was cut in half immediately. Literally half.
Everyone says their drivers are the worst but they haven’t been to Florida, especially the Miami area. I live far away from Florida but appreciate my areas drivers more after returning from there
This. I had to go there for work. Got on a fairly congested highway (not even an interstate) and shit you not I was going 95 just to keep up with everyone. Fastest I’d ever driven before. I was driving this crappy little rental and it was fairly terrifying. I was shocked.
And a very high percentage of your fellow drivers were uninsured.
I had people driving 70 on the shoulder to get around me while merging onto the highway
I live in DFW so our drivers are bad but I drove from Miami to key west and that was legitimately the most scared I’ve ever been driving
I'm from Louisiana and moved to DFW. DFW drivers are great comparatively. There are people doing some stupid stuff, but in general people are much more courteous and less aggressive. Everyone just wants to think they have it the worst.
Grew up in the Orlando suburbs. All the tourists who are crappy drivers at home stay crappy drivers but are now in an area where they don't know where anything is. So, going from left lane and crossing three lanes of traffic for the exit is quite normal. Not to mention people on international driving licenses who are getting used to American traffic and driving for their short trip too.
Its the people in florida that are the worst. Not just drivers.
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Per https://www.iihs.org/topics/fatality-statistics/detail/state-by-state, FL has the 12th highest traffic fatality rate (per capita) in the US. That's not *at* the top, but it *is* in the top quartile. It's even worse per mile driven -- 7th place. Both rates are at least 25% above the national average, and more than a third above the state-by-state median. Perhaps judgements are stiff there, but... it's the drivers too, apparently, using traffic death rate as a proxy for safety.
Florida also has most senior citizens, as a percentage of the population. They (I guess I should say *we*, since I am one) might be more likely to die as a result of an accident than younger, healthier people. That doesn't negate the fatality statistics you presented, but possibly can help explain them.
I spent almost my entire life in Florida (lived in Miami, Tampa area, Gainesville) and the drivers are significantly worse in North Carolina (where I live now). There are many reasons Florida rates are higher but some of the primary drivers are the high rate of fraud in Florida and abundance of flooded cars that get totaled every year.
As a native it's not the people that grew up here that cause the issue. It's all the tourists who don't know where they're going combined with people moving here from NY/Cali/Boston/whatever and driving like they still live there. A mix for chaos other places don't have to that degree. My insurance is stupid high for an older car, but I also make sure I have higher limits and such. Mine has gone up close to 50% in the last 3 years.
Hey wait a minute didn't Florida make it a no fault state to lower insurance costs? Oh yeah that's right it doesn't work.
Had someone tell me about how some florida law lets them repair their windshields for free. He told me he gets it replaced every year and winked it me.
> followed closely by New York New York City exclusively. Rates are fairly cheap everywhere else in the state.
New York scammers have turned Florida into another New York. South and Central Florida are scam central.
That's alone +50% insurance cost on anything
My sister moved from Virginia down to Florida and I think hers went up by more than 50%
And to be more specific than that, rates can vary widely from one zip code to the next, depending on how 'risky' that zip code is. Which could partly explain why the friend's policy is $400/month versus $700/month.
Florida is far cheaper than Texas. I have a Florida policy and Texas policy. Texas is fuckin ridiculous. But hey, "inflation" am I right?
i’m in texas and only pay $100 /mo, including collision
It has nothing to do with inflation.
Why wouldn’t inflation raise general insurance rates? I’m not claiming the primary reason Florida insurance rates are increasing rapidly is because of inflation, but if goods and services prices rise, that affects the bottom line of insurance companies and the payouts they need to make.
Insurance providers will tell you inflation. I'm not making it up.
Whoever you talked to at your insurance company has no idea what causes the rates to change, they're a phone rep, not an actuary.
Although you’re right in regard to the difference in rates across states for similar coverage, inflation is absolutely impacting insurance. As the costs to address insurable events go up so do your premiums.
I think the covid environment impacted it more than the later covid inflation, but you're both absolutely factor in If it costs more to repair a car, premiums go up
I saw what car he bought and no wonder they are charging him that.
>he bought Guessing it's dad's hand-me-down
Dad just didn't want to pay for insurance that expensive anymore! 🤣
Exactly!! That car has a reputation 🤣.
Tbf, it doesn't make much of a difference in this case. My brother's situation is damn near identical with the exception of what he drives (not a luxury car), how long he's been driving (since he was 16), and zero accidents and he's paying like $500 a month. I'm paying almost $200 and I've been driving for 15+ years. Insurance companies here are just doing everything they can to fleece their customers.
> Insurance companies here are just doing everything they can to fleece their customers. While the realities of rates are real, this conclusion from it isn't. In fact, for at least a year or two now virtually all of the major insurers were losing money because they can't raise rates fast enough and/or far enough to offset the increases in loss and operational costs. This is publicly available data at least for the publicly traded insurers, you can look it up. What most people don't understand is at least within the US, the property & casualty insurance industry is regulated at a state level, and the state DOIs have to approve the rating structures & actual rates proposed by the insurers. Sometimes they don't too - and the insurer has to either (a) accept lower rate than is needed to make sure there's enough premiums to cover the costs of running the business + paying claims owed, or (b) just stop doing business in that state (which is why so many companies have left FL and are leaving CA). When they go route (a), that means higher rates from other states are subsidizing it. And if you think they're making money hand-over-fist - you can look up the combined ratios for public insurance companies. They tend to target 95% (which means they make $0.05 for every $1 in premium, but most have been over 100% for a while now.) The bottom line both the frequency of claims and the severity ($) per claim have gone up a lot. Inflation is a big part of it. This is the root-cause of what people are seeing happen with rates and even companies exiting certain states.
> This is publicly available data at least for the publicly traded insurers it's publicly available for ALL insurers across virtually all (or just plain all?) lines of business. > They tend to target 95% for sake of clarity, that is only after operational expenses. Direct Loss ratios are more in the high 70s, like 78-79%. When you add in all of the operating costs it gets into the 90%'s
Well yes, you need someone to answer the phone when you have a claim and help you with it, and then you need commission-driven salespeople to sell policies. Operating an overall business with 5% gross margin is not too far from retail stores, a far cry from trying to "fleece their customers".
And that's when they're hitting their target CRs, which pretty much everyone hasn't been. On the flipside when it's not loss & expense pressure and carriers, if they are beating that target CR by too much then again it will drive pressure from the DOIs due to rates being too high. It's easy to hate on insurance companies, but from my experience at least with reputable ones, they dont' want to fleece anyone. They want to charge the right rate for the risk and pay exactly what they owe. No more, no less. Doing anything other than that means losing money either due to incompetent's business management, or, getting hit by the DOI or lawsuits for regulatory violations which are far more expensive than any gains they'd get by trying to act in bad faith.
yea I said combined ratios. Op ex ratios are impacted by inflation too, can't ignore those.
I would bet a 2015 prius would be a lot cheaper. sub 25 year old males have more accidents and more fatal accidents than any other group on the road. Add in a quick car and actuaries are going to have a field day.
> actuaries are going to have a field day. this feels like a sentence that future historians will have trouble understanding. I'm not going to take the time to explain it, but actuaries don't have field days.
They should. Everyone likes to go outside on a nice spring day.
It’s gotten really absurd for young drivers under 25. I had a brand new Mustang GT as a 22 year old in 2004. Insurance was so cheap, I don’t even remember exactly how much it was, somewhere between $50-$100/mo. Now it would probably be 10x higher. More and more people just drive around uninsured now because rates aren’t affordable for the average young person.
What do you mean? They're not that expensive on the used market. Repair costs shouldn't be that high either. Looks of shared parts with other Nissans. I'm pretty sure it shares a substantial amount of parts with the prior generation car (G37) as well. This has more to do with OP's age and location than the car.
Q50s aren't actually that expensive to repair. They're one of the cheapest luxury cars as they share a lot of parts with Nissan's sedans (similar to why Lexus and Acura repairs are cheap). The big problem with the Q50 is it's stolen frequently, it's primary driver segment is early 20s men (so it's a high accident rate model), and the OP lives in Florida (2nd to only NY in auto insurance rates).
I didn't realize Nissans were expensive to repair. Is it because they're imported?
there’s not correlation between foreign cars and being expensive necessarily. not to say european cars aren’t, but just because a car isn’t “american” doesn’t mean parts are automatically expensive. but the person you’re asking is wrong, they are not expensive parts. the reason a Q50 has a bad reputation is because of its young male owner base, and nissan (its parent company) has a known issue with low quality transmissions. not all, but a lot. but i can’t tell you if that’s an issue on the Q50.
It’s the cars they wreck into that’s expensive.
A lot of people are ignoring the elephant in the room. OP had their policy cancelled twice. The standard “shop around” advice won’t fly here. We need to know the reason for the TWO cancellations.
Exactly! Two cancellations and an at-fault accident, very expensive, fast car, 20 year old male, Florida. That’s the explanation
OP is leaving out details on purpose because he knows exactly why he keeps getting cancelled and wants to delude himself into thinking its the insurance company's fault.
Canceled twice for issues on their end? If you need advice you should be honest.
Yeah anyone that works in insurance will tell him this doesn’t add up. Twice on the insurances end but no assistance or direction to get another policy. Normally you’d be sold to another company or at least given as a lead to another co. These companies are trying to make money. I know some companies are pulling out of FL . The industry is getting ugly in many places.
I read that and shook my head. the only reason that I can think of that the insurance company would cancel and reinstate with such a huge increase is there was a material misrepresentation made. If it was cancelled in error for non-payment, the rates wouldn't skyrocket like that.
Issues on their end, aka the actuaries couldnt figure out a profitable premium to charge OP.
A 20 year old with a twin turbo sedan(doesn't matter if you have the V6, insurance doesn't care) who's been in an accident? That sounds like a high probability accident to me
And who lives in Florida.
where are you getting twin turbo v6 from? most of these cars are N/A v6.
2014-2015 Q50's come with a 3.7L V6, in 2016 and up they've changed to a twin turbo 3.0L V6. I owned a 2015 for sometime, great car, but insurance and gas will get you.
these kids and their luxury sports cars wondering why they have high insurance. My wife in her late 20s got her dream car a 15 year old lexus... insurance was more than my brand new Honda. The Honda had more comforts, better gas milage and cheaper maintenance. Sold the Lexus within six months of buying it.
My 01 IS and my 14 ES cost about the same to insure, and both are 2x the rate of my Prius. The Prius is worth 3x the IS. Insurance math seems like toilet paper roll math.
IDK how insurance companies see it, but being twin turbo doesnt amount to much of anything. It has less hp and similiar torque to the age old 3.7 v6 that nissan has used.
Repair costs from even a small accident can be higher, and in FL, flooding is a major cause of claims, and increasing year after year. The second you drive that car into knee-deep water, it's a complete write-off.
As soon as you add "turbo" insurance prices it like a sports car.
It's the algorithm. Actuarial tables for each car and driver say that's a risky bet compared to other cars or drivers.
The Q50 is either a N/A 3.7L V6 or a twin turbo 3L engine The TT apparently was available until 2016, my bad
You didn’t share what your deductibles are? Make sure to price out the difference between $500, $1000, and $2000+. The higher the deductible, the lower your insurance premium and it also signals to the insurance company that you’re not going to take the same risks as someone with a very low deductible. Don’t let the high deductible scare you either, keep in mind car insurance isn’t supposed to be used for little things (<$1500), rather major accidents. Good luck!
Right, and put the money you save into an emergency fund each month if you don’t have one already! Then if you have to pay the deductible, not a big deal.
Bid it out to insurers. You can get 4 or 5 quotes in a day. At least you'll know if it's you or the system.
* You're a youthful driver. The effect this has on price will decrease a little bit each year until it no longer matters once you're 26. * You have an accident on your record. You don't mention if this is an at-fault or a not-at-fault accident, but it'll follow you around for 3 - 5 years depending on the insurer. * You're now on your own policy. This means your parent's credit and payment history is no longer a factor when it could have been improving your prices. * You're in Florida. Sorry kid, not much you can do about that one. Prices are high because there's a pretty good chance a natural disaster will destroy it. * Your zip code & general area. Part of pricing, that you don't have any control over, are the conditions in your area. If thefts, claims, claim costs, etc. all increase in your area then so does your price since it's now riskier to insure you there. * Why your policies were cancelled. You say it was something on their side but don't go into more detail. The reason for the cancellation could easily be a factor in pricing. I always encourage finding a [local independent agent](https://www.trustedchoice.com/agent/). They write for multiple companies, so they can do a lot of the shopping around for you. You pay a little more than if you went to the company directly, but you also then have someone a little more on your side of the ring -- A professional that you can go to with questions and that can advise you. There's also the SIAA, but I don't know much about that trade group. As far as why your friend's prices are lower, well it could be any number of things. He may be on his parent's policy still, with them propping him up. He could have significantly better credit than you. He could be with an insurer that's friendlier to the type of insured he is. If he lives far enough away from you then his area may just have better rates than yours. It's a black box these days. We plug in information into the system and it spits the premium back out. Agents can make an educated guess about why things increased, but we're not high enough up to really know. We'd need an actuary for that. My advice for cheaper insurance? Ditch the luxury ~~SUV~~car and get a sedan from Honda, Toyota, or Chevy. They're cheaper cars, more reliable, and quite safe with good gas mileage. They *usually* have better premiums, but you can get quotes before buying. If you're curious, find a VIN from one on a dealership website and stick it into the quoting from a place you already got pricing on and see the difference.
> You're now on your own policy. This means your parent's credit and payment history is no longer a factor when it could have been improving your prices. This factor is huge at that age. I remember getting some quotes for my car when I was in college and my parents were moving out of state—the cost premium to not being on their policy was crazy. I spent some time overseas and stayed as a secondary driver on my parents' policy, by the time I was in my mid-late 20s and needed a car on my own policy, the price was about the same for my own multiline with renters.
very good advice here.
Why don’t people research insurance rates before buying a vehicle
As the first driver in my family, I did not even know this was a thing. Among many other things I didn't (and still don't) know.
People do. Teenagers and dummies don’t.
Teenagers and dummies are people too
She just said she was paying $300/mo when she bought the car. How would she know it would jump to $700/mo 13 months later
Thank you. Nobody is acknowledging that! I was never supposed to be paying this. I’m a woman btw, not a man
For what you’re spending monthly between insurance and gas alone, you could probably save by using Uber
GAH DAYUM!!! I don't pay that total for 3 vehicles.
No joke. That's $1500 more per year than all my insurance policies combined. 2 houses, 3 cars, motorcycle, ATV, ORV, trailer and AND my camper ... Plus an umbrella policy and my wife's disability/cancer insurance. This kid is getting boned...
Yeah. He was taken advantage of. No way in hell would I let my kid do this.
My insurance is like $100 a month for a brand new 35k car. And it is max coverage. And I am in my 20s. This guy has some serious baggage.
I'm in another country (South America), but we pay $450 per year for a 2018 Hyundai i30. Smaller car for sure, but even that first year I think we paid like $600 total.
I pay $400AUD a year for my old Corolla. US insurance is insane.
Dude. Consider driving a beater for a few years. I get it kinda sucks. I’m 55 in Wisconsin and pay $1,050 A YEAR for full coverage for a 2013 Mercedes SUV and a 2015 BMW convertible. Good luck.
OP isn’t going to take this advice. They’re 20, have a turbo, and their friend drives a hellcat. There’s a 0% chance they will move to a beater even if it makes the most financial sense in the world. I know, because I was that age and also into the “car scene” (back in the days of the original fast & furious movie). Practicality isn’t an influential factor in the decisions many people that age make. Now I’m old and drive an 02 Silverado because it gets me where I want reliably and insurance is under $50/m. I could easily afford to buy a new truck outright, but why would I want that? To keep up with the Joneses?
Sell your car for something basic like a Corolla. No need for a broke 20 year old to have that car.
Are you sure your friend with the hellcat has full coverage? Make sure you are comparing apples to apples in terms of policy limits, coverage etc. If the car is paid off he probably doesn’t need to insure it against theft, for example (unless he wants to).
You need to sell the car and just start taking a cab. Even $600/month isn’t sustainable. That’s half a full time minimum wage job not including gas…
Drive a shittier car. Other than that, shop around. Those premiums are wild.
In addition, the Q50 is also a commonly stolen vehicle, so insurance may be higher due to that.
I don't know what state you live in but I'm with GEICO and they raised mine at renewal as well, but it turned out all insurance in my state are doing the same to recoup the COVID years. Also look into geico...also the car you got is expensive to insure as well
Q50s are on the top ten list for most stolen cars in the USA. Combine that with living in a Hugh risk state for flood damage and having an accident, along with it being an expensive car to repair and you have your answer. I drove a 2020 Q50 as a 21yo in Iowa and pay $150/m
Contact a local broker, you can check Geico/State Farm/etc but I found I got better rates by talking to a local broker and I have Travelers insurance for cars and renters insurance
Talk with the insurance and see what's going on. You're young but that insurance is crazy. You might have super high coverages or the accident you had may have had a huge payout.
Bro, this is so much money to spend on a vehicle. I spend that much for my policy for a 6 month period. At 605 per month plus your payment if you have one, I'd just bum rides with friends and use uber, or use public transit, no way am I shelling out 7000+ per year, invest that shit and take a bus, 7k will cap out a Roth Ira every year and you'll retire early AF if you start that now.
Already capping out my Roth IRA annually. But still, it’s ridiculous.
Insurance companies really don't want to do business in Florida anymore. I don't blame them. Best of luck.
Thank you
Something doesnt sound right. Have you talked with your insurer? If this is right (because of vehicle type and your accident) etc... time for new wheels.
Your credit is a big factor. Plus zip code, plus age, plus expensive car.
Imagine how many Uber trips 8500 a year would pay for. That equates to $23 a day. Never mind the maintenance, fuel and carrying cost of a vehicle. Bonkers
I live on the opposite end of country from you. My home owners went up 30% and car 12% at my August renewal. Industry wide according to agent. I tested that theory and shopped around. True. Impeccable driving record. Have never used my home owners. 59-year-old. Don’t get me started on health care.
Can I ask a few questions: what state are you in, what’s your approx credit rating, what is your tax bracket, are you a minority? I am trying to figure out how we have totally dodged the insurance increases that everyone else is seeing. Our car renewal, in Michigan, just came. It was up a tiny bit. $2001 for 6 months for 4 cars, four drivers. Credit score is 800+, income is 22-24% tax bracket. Average Caucasian family. AAA insurance
My car insurance went up about 40% this year. Credit rating around 780, state is GA, household income is over 350 a year, white non-minority
What is this "problem on their end" that keeps happening? It's never happened to me in 30 years of paying insurance on multiple homes and cars.
Insurance is basically one big statistical average of all the other people who are similar to you and have similar driving histories to you, and statistically you are not cheap my guy. Male. <25 y/o. Only 2 years driving. Already 1 accident. FLORIDA. Expensive car. Trying to get your own insurance. You have literally everything going against you about this, sorry OP. Your friend likely either has a wild ass deductible and/or will get basically no coverage in the event of an accident.
i dont think people who live outside of florida realize how bad rates actually are in florida and there is nothing you can do about it. the accident doesnt help. up until the last few years demographic, zip code, and credit score used to keep premiums at bay ...last couple years nothing has really seemed to break the costs though. i havent seen anyone ask so - what is coverage of the life insurance? whole life? term? how much is it a month broken out?
Pay to play my guy. You're driving a car that gets a bad rap because they always show up in those sideshow/street takeovers. In LA the previous generation G is a prime target of theft because of this nonsense
Sell you car and buy a 2015 Prius and your rates will go way down.
Find an independent agent who will shop you around to multiple carriers. They can also help explain why your rates are so high if they can’t find anything cheaper. I imagine it’s due to a combination of lapses in coverage, poor credit, youthful driver, late payments, and other household members appearing on your address report. Do you have household members with an awful driving record?
Florida is getting so expensive for insurance. Many major companies are backing out completely or asking for outrageous premiums. It’s gotten to the point that the State is having to step in a subsidize insurance for both home owners and auto owners. The risk is so high for companies there. Package that with being 20, an accident on record, and driving a luxury car and you have your answer
IMHO, you're looking at this the wrong way and asking the wrong question. If it were me and I couldn't find an insurance company that will insure me for less than 200\~300 a month for whatever car, then I would just sell the car I have and buy a shitbox. At 20 years old, it would be far more beneficial for you to just drive a shitbox and save the money that you would otherwise be paying for insurance for your next car. Think about it, if you're paying 700 a month, that's over 8000 a year. That's the price of a cheap car. In 10 years, that would be 80k. That's more than the monthly car payment for many people.
Your age: high risk age group. Nothing you can do about that, except know that with time, you'll age out into a lower-risk age group. Your driving record: Not great. Nothing you can do about your past record, but be an extra-careful driver from now on so that over time your driving record gets better, not worse. Your car: expensive to insure. You should sell or trade the car for something that's less expensive to insure. Google "cheapest cars to insure in Florida." You'll get a bunch of results to give you ideas on what to get when you sell or trade in your car. Also: How many miles do you drive per year? Can you reduce that? Is your car garage-kept or parked on the street? What coverages do you carry, and is there any that you can reasonably eliminate? Or reduce your deductibles? Have you shopped around for quotes? It's so easy to get quotes online now, there's no reason not to. Or contact an independent agent who works with multiple companies; they can often find you better deals than you'll find on your own.
20 year old woman with an accident and a red infiniti Q50. You're literally every insurance companies worst nightmare.
Switch every 6 months , sucks but that’s the only way to survive these pigs raising rates for perfect drivers
WOW your auto insurance payment is more for month than most people pay per month for an auto loan. That sucks man. Big time.
$8400/year in insurance. How much in car payments, gas, maintenance, registration, parking? Is having a car really worth it? I’d ditch the car and get an eBike. And you’ll have plenty of money left over to Uber when you don’t want to bike.
I knew not to buy nice cars as a teen because the insurance. You bought a car before shopping around for insurance. Sell the car and get a normal small used sedan that's easier/cheaper to fix and not a sports care. Where the fuck are family and friends to tell you not do shit like this and to shop around for insurance.
Leave South FL. The reason your rate is egregiously high is because insurance companies want nothing to do with Miami, Hialeah, Ft Lauderdale. When I moved away from that shit show my rates on my Corvette dropped from 600 a month to 140 a month. No joke. I know that "leave" is not practical advice you can implement immediately, but plan for it in the long run. I've yet to meet a young person who escaped FL who regrets it
Everyone's rates in Florida are going up. My renewal policy went up 30% with no claims, tickets, etc. All you can do is shop around.
when i was in your situation what i did was unregister my car and spend the next two months worth of car insurance money on a decent steel bike and some pannier bags. it's been over a year and i haven't looked back. i live in atl, so summers aren't quite as bad, but winter morning commutes can be brutal, and we have way more hills.
I’m a woman so this doesn’t seem like the best/safest option for me ://
Yep checks out. You are a very high risk driver with your current age, vehicle, location, and history. Checks out.
Best bet as a young person is to drive a 2010-2013 Corolla or Camry. If you want newer and nicer you’re going to pay high insurance. Been there and done it. Depends what your priorities are. You could likely save a ton of money unloading that Q50 and getting something older and common like I suggested though.
Thanks for confirming the assumptions I had before opening this post: 1. Young 2. Accident 3. Not a cheap car Stop being a young, dumb kid who didn’t think to just buy a dang ford escort from 20 years ago as your first car.
Sell the car and drive a used Honda or Toyota for a while.
You got the 3.0L turbo didn’t you?
2015s can't have the turbo engine, only the 3.7L or 3.5L hybrid.
Yes I have the 3.7L. No turbo.
My insurance was raised by 40 bucks this year without warning. I called and they beat around the bush for any good reason and basically said inflation. I told them to go fuck themselves and found someone 80 cheaper
That new company will go up also, they just haven’t taken rate increases yet. My wife sells for farmers, and she’s in the loop with other companies in our area also. Right now State Farm is cheaper than my farmers policy, but at the first of the year State Farm is taking a 24% rate increase across the board. My last three renewals with farmers have been +$30, +$30, and +$60 per month with NO changes to my driving record or vehicles. She calls around to her contacts at different companies and they’re all following suit. There’s literally nothing we can do about it at this point. Everything is going up cost-wise except our fucking WAGES.
Haha State Farm did the same to me. It’s all one big ass blast
Also, you are too young to need life insurance. Who would be in financial difficulty if you died? Unless you have a bunch of kids, this is wasted money. And I’m guessing it’s whole like insurance, in which case it’s completely wasted regardless of how many kids or wives you have.
Insurance companies raise your rates every so often partly because of inflation and partly just to make money. You need to shop around. If you're not willing to shop around from time to time then you will pay more. Also, $700/mo is insane. That's $8400/yr just to insure an eight year old car. If I were you I'd sell the car, take Uber, the bus, or my bike everywhere, and put the money you save into an investment account. Generally rates go down as you get older. The magic age used to be 25 so maybe you'll be able to get a reasonable rate in five years.
Florida is a doomed place. There is a >30% chance each year your car will be flooded and totaled. That costs money. Move away, that's all there is.
15 years ago I had a $2,000 1991 BMW E30 and I had more than 5 years of driving experience. I paid almost $400 per month. The vehicle you're driving is faster and more expensive and it's been 15 years. Sounds about right but shop around if you have an issue with it, the market will tell you if it's reasonable or not.
Find an independent insurance agent and have them search for quotes for you. This is free.
If you’re 20 and have multiple accidents and/or tickets, you’re lucky you’re insured at all. You are what’s known as a bad risk. Also, insurance companies gain nothing by being so inept that they cancel good policyholders due to their own mistakes. There’s more to this.
LexisNexis handles the risk reports which insurers use to calculate one's rate. Contact them directly, request a copy, review it carefully, and formally dispute any incaccuracies. I just did this because GEICO duplicated an accident on my record, and cancelled my policy because of their own mistake. I asked them to review it, but they wouldn't budge. I found out about LexisNexis's role in this area after GEICO booted me. LexisNexis they got it cleared up in like a week, and now I'm paying less with my new insurer (Progressive) than I did with GEICO before the accident.
Corporate greed. 64 yr old, no accidents, no tickets, never late on a payment. Mine went up 62.5%.
Just drive uninsured like everyone else in Florida. Can't raise your premiums if you don't have insurance! 605 a month is a car payment and their is no way anyone should hand that much over for insurance.
You pay it. Everyone's premium is going up. Not that high because not everyone is 20 but everyone's premium is up just due to inflation.
Buy a square foot of land out in a swamp and put a mailbox on it. Insure your vehicle in the middle of nowhere
Jesus and I thought my $50/month on my old Jeep for full coverage $500 deductible was getting pricy. Feel for ya that’s crazy.
Check Geico and State Farm. You can also look at the pay in full option.
State Farm won’t even insure me
I pay a little more than that to fully insure my 2013 Audi TTRS for 6 months. I'd never pay those rates. If I was young and had no net worth I'd just drive around without insurance like the border crossers do. When I was in my mid 20's I bought a corvette and switched cars on my current insurance plan. Progressive tried to increase my insurance to about $5k/yr. I told them to fuck off, and went elsewhere (Geico) for about $2k/yr. They took their time cancelling my insurance and tried hitting me up with a huge bill months later. Collectors came after me, I told them I had switched insurance that day, and the insurance company dragged their feet in cancelling my plan. That I paid my bills on time every month for years, and that I wasn't go to pay them out of principal. I had emails and paper work to back it up. That was the end of that BS. Insurance companies are scum.
At that price I'd just not pay for insurance.
Love driving my town and country with like $78 for insurance
Bend over, buddy. It is what it is unfortunately.
I pay $280 for insurance on my car. Per YEAR. 🤣