Insurance For Younger Driver

[daniel-r-a]

Hello everyone--

I have been researching this topic for quite a while but have had little luck finding anything fitting my issue, so I'm here with a new thread!

So, I am a younger driver with a perfect driving record, but Chubb seems to be charging me through the roof ($4,000/year) on my Model S's insurance. Knowing that this forum has the widest reach within the Tesla community, I want to see if there are any other younger drivers out there also being charged like this or if it's just me being paying this much. If there are any other young drivers out there paying less, I am wondering what company you would suggest and a rough idea of what I might expect to pay.

I should also note that the $4k/year figure seems even crazier to me since that is what I pay after bundling my car insurance with the rest of my family's insured assets.

Thank you all in advance and just know that this is certainly not a topic I'm too knowledgable on so any advice/info is a huge help!


Y'all are the best,
Dan

 

[AMPd]

I received a quote for 4k per year from AAA for a 70D
24 years of age, 1 speeding ticket.

 

[goodbyebmw]

Also 24 years old. One at-fault accident in my previous BMW. $3900 a year for AAA, two-way insurance.

 

[DFibRL8R]

I seem to recall that 25 is the age when the rates start to normalize so you're not too far off. Average Car Insurance Rates by Age

 

[polything]

find a ins broker so they can shop around for you. i am not 24 but pay around $2.4k annually.

 

[llavalle]

I'm a bit older, 31. Insurance is not the same in Canada..(part of it is paid in the plates) but I pay $550/year for my 85D.

 

[JMG]

Yep, most states and companies still charge males as "youthful" until age 25. Call an independent agent (Independent Insurance Agents for Home, Auto & More | Trusted Choice to find one). They'll shop around for you. I'm an independent agent, but have no dog in the fight because I'm only licensed in Texas. But that is exactly what I would do if I were in your shoes.

 

[Max*]

OP what's a "younger driver"?

 

[Blaxin41]

32 years old married no kids
1 speeding ticket
1 minor at fault claim $700 (wife)
4 cars total is $3,000/year of which the P85+ is $900/year

 

[Modeler]

Blaxin41, what is your insurance company?

 

[Koryin]

24 here, I pay $2000/year for 85D. Almost at my full discount, one year away.

 

[daniel-r-a]

Wow, thank you all so much for the responses! It seems to me that my rate is actually about average (or possibly even a bit better than average) for my age/driving record. And to answer the age question, I'm 21 which means--as that age vs. insurance rate chart shows--I'm stuck paying big for insurance for a few more years. Nevertheless, I'll be taking the advice to call an agent to see if I can find any competitive offers! Once again, thank you all for your responses--the help owners can get on this site is unbelievable and it is only because of posters like you all!

Best wishes and keep enjoying the road,
Dan

 

[green1]

find a ins broker so they can shop around for you. i am not 24 but pay around $2.4k annually.

brokers are mostly useless at avoiding shopping around. most only have 2-3 companies they deal with. I recommend calling as many brokers/companies as you have time for, shopping around really does pay with insurance (and do it every year too, premiums creep up and you need to keep the company honest)

 

[Anthony7]

I just cringe when I see those prices. I'm 35, no accidents or tickets... I have 100/300/100, $250 deduct, etc.. and pay only $680 a year with Liberty Mutual. I've been paying my own insurance since I was 20 and never had anything ridiculously high. I will say that state farm quoted me $4600 and most others around $1100-$1800. It really helps to shop around.. make a list and start calling. Do your research about the amt of coverage you will need and the companies. I actually got a cheaper rate but passed it up for a more reputable company.

 

[JMG]

brokers are mostly useless at avoiding shopping around. most only have 2-3 companies they deal with. I recommend calling as many brokers/companies as you have time for, shopping around really does pay with insurance (and do it every year too, premiums creep up and you need to keep the company honest)

Sorry but I must respectfully disagree with you there. I personally represent about 10 carriers, and I'm a small time agent. I would also discourage shopping around each year as more companies are beginning to ask "How long with the previous carrier?" If the answer is "Less than a year (or two)" then your rate will be higher. Customers that skip from company to company tend to be a higher risk than those that are more loyal. That is another key to using an independent agent, we have the ability to say, "Mr. Green, you are with company XYZ. We know that your oldest at fault accident was 33 months ago and once it turns 36 months old, company B will be a great fit for you as they only penalize for accidents 36 months old and younger. Whereas company C goes back 5 years.So we would advise you to stay where you are for at least the next 6 months and then that would be the most opportune time to move carriers." Or "Do you have a renter's policy? Well Company D offers a 15% discount off of your auto insurance if you buy a renter's policy as well, and most of the time the amount of the discount is more than the actual cost of the renter's insurance. So you wind up getting a renter's policy for no additional premium."

 

[green1]

Sorry but I must respectfully disagree with you there. I personally represent about 10 carriers, and I'm a small time agent. I would also discourage shopping around each year as more companies are beginning to ask "How long with the previous carrier?" If the answer is "Less than a year (or two)" then your rate will be higher. Customers that skip from company to company tend to be a higher risk than those that are more loyal. That is another key to using an independent agent, we have the ability to say, "Mr. Green, you are with company XYZ. We know that your oldest at fault accident was 33 months ago and once it turns 36 months old, company B will be a great fit for you as they only penalize for accidents 36 months old and younger. Whereas company C goes back 5 years.So we would advise you to stay where you are for at least the next 6 months and then that would be the most opportune time to move carriers." Or "Do you have a renter's policy? Well Company D offers a 15% discount off of your auto insurance if you buy a renter's policy as well, and most of the time the amount of the discount is more than the actual cost of the renter's insurance. So you wind up getting a renter's policy for no additional premium."

I'm sorry, but if you are in the industry, it's possible that you may be a bit biassed on this, because if your advice is true anywhere, it most definitely is not in my jurisdiction. Sure they ask how long with the last carrier, but I'm not paying 50% more to stay with one carrier than I'll pay with another just to get more years in. If nothing else, I've frequently had my renewing company give me a number, tell me it's the absolute best it possibly can be, only to drop it 20% or more when I find a competing lower quote. Need to keep them honest. (I actually stayed with that company for over 10 years, playing the game every year where they quoted a price increase, I got a competing quote, and they matched it, then they stopped their price match policy so I jumped ship the next year and saved about 20% at the new company)

I have yet to find ANY "independent" agent (though the industry talks about them a LOT) many brokers only represent ONE carrier, others represent a small hanful, I can't guarantee how many each one actually uses, but the fact that I can call 10 brokers and get 10 wildly different quotes tells me that they aren't all talking to the same carriers. Had the first broker I called been one of the highest vs one of the lowest I would have been very ill served to have stopped looking.

If I followed your advice I'd be thousands of dollars poorer than I am now, so I'm going to keep shopping around.

 

[JMG]

I'm sorry, your bias is clearly showing. Sure they ask how long with the last carrier, but I'm not paying 50% more to stay with one carrier than I'll pay with another just to get more years in. If nothing else, I've frequently had my renewing company give me a number, tell me it's the absolute best it possibly can be, only to drop it 20% or more when I find a competing lower quote. Need to keep them honest. (I actually stayed with that company for over 10 years, then they stopped their price match policy so I jumped ship the next year and saved about 20% at the new company)

As for you dealing with 10 carriers, I don't know how many each broker actually uses, but the fact that I can call 10 brokers and get 10 wildly different quotes tells me that they aren't all talking to the same carriers. Had the first broker I called been one of the highest vs one of the lowest I would have been very ill served to have stopped looking.

If I followed your advice I'd be thousands of dollars poorer than I am now, so I'm going to keep shopping around.

Of course I'm biased, but I'm also working in the industry doing this every day. Any company that doesn't give you their best options up front is definitely one you don't want to stick with. You obviously haven't found a good agent. My employees will automatically shop our customer's renewals if they have a rate increase. This is done automatically. So out of the blue you might get a phone call from one of my CSRs (or me) saying, "Mr. Green, you will be getting your renewal from Company A in the next couple of days. We would like to offer you a quote with company B with the same coverages and it will save you about $XXX per year. If you would like to make the change, please come in or sign the document we'll be emailing you..etc etc." All of this is done with a simple signature by you. No calling around and giving your personal info out a million times. You stay with the same company, same people, same phone number etc.

To be perfectly honest, clients like you are not worth the hassle :biggrin:. So I tend to let my yearly shoppers go each year. I wind up losing money on those. We need to keep you on the books for at least a couple of years before we actually start making any return on your account.

Here in the states, a lot of the independent agents will represent several different carriers, but with some similarities. For example, if you can fog a mirror you can represent Progressive. However, not everyone will have State Auto, or Central, or Safeco/Liberty Mutual, etc. because those carriers don't like to over saturate the market by appointment every agent with the same company. Also, its quite possible that the agents aren't quoting the same thing. Some always quote auto death indemnity. Some don't quote UM/UIM. Some only quote minimum liability limits, med pay, PIP, etc etc.

To each his own! By all means keep on shopping if that is what works for you, I just try to give a little different side of the story.

 

[daniel-r-a]

So I reached out to a few different sources, which checked with dozens of insurance companies, but unfortunately I had no luck. The cheapest quote I got was $4,700 and quotes went all the way up beyond $7,000/year. I realize that this is mostly due to my age, but I guess that means I can add "cheaper car insurance" to my list of things to look forward to as I get older!! :biggrin::biggrin:

So for now, I'm gonna have to stay on my family's bundled Chubb policy while I wait for my rates to drop in few more years. Nevertheless, please let me know any more advice you all have since I'll continue checking this thread until my insurance rates are as low as some of you all!

Best wishes,
Dan

 

[vvanders]

Yup, you'll see a huge drop once you hit 25. Statistics and all that .

 

[brucet999]

Dan, I think your best option may be to go the Bruce Jenner route. Once you identify yourself as a woman, your rates will be lower…and you can shower in the women's locker room at the gym.