is there a way to pay less for car insurance?

May 3, 2017 · Posted in FAQ 
car insurance
Jae C asked:

i’m planning to buy a car next year.
it will cost around 11000 and i’m planning to downpay 5000.
so 6000 left.
and my dad wants to pay that 6000 with his credit card so he can put the car under liability instead of full coverage.
our family has 2 cars each under my parents’ names.
so what is the best way to lower the insurance for me
i’m 21 yrs old guy no accidents or tickets.
our insurance company said it would be about 1600/yr for me..
is that average?
is there a way to lower the insurance?

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Comments

9 Responses to “is there a way to pay less for car insurance?”

  1. chrisazm on April 23rd, 2009 6:02 pm

    best way is to raise the deductibles.. then talk about lowering certain coverages or shopping insurance companies.

  2. maamu on April 25th, 2009 3:28 pm

    Call around and see if you can get cheaper insurance. Geico saved me some money…try them.

    Do you really want to buy a brand new car and only carry liability on it?

    M

  3. Robert J on April 26th, 2009 11:41 am

    I got rid of my car. Talk about saving money! I’m 58 years old, ride a bicycle unless there’s snow on the road, and smile when I think about the price of gas.

  4. CP on April 28th, 2009 2:30 pm

    Open a lawn mowing business and start mowing a neighbors yard. File for a business name with your state and insure the vehicle on a commercial insurance policy. Commercial insurance policies are cheaper for high risk drivers because the cost basis is different. My new $30k truck was $1200/year for full coverage on a commercial policy when I was 23 however insurance cost is also based on credit score, location etc. My insurance would have been 3500/year on a personal policy.

    Not having full coverage on an $11,000 car is risky. Many accidents are considered no fault or 50/50 as it is difficult to determine fault or sometimes just isn’t worth it. You are betting $11000 on it so you need to be financially willing to bear the risk yourself, although I can see the consideration since insurance kills you as a young male.

  5. Alexa on May 1st, 2009 12:46 am

    1. put the car on your parent’s name, they have a bigger driver’s discount, pay less (unless they had a claim in the last few years)
    2. don’t buy comprehensive coverage (it just protects you for fire, theft, vandalism, you don’t need it for now)
    3. raise the deductible on collision up to 2500 (not recommendable, maybe 500 or 1000)
    4.be careful about taxes, because you may have to pay them twice, ask the ins. agent
    5. you can finance the payment and it comes monthly out of your account (you need a void cheque for that)
    The thing is you have to pay 18 dollars for the plates:(
    These are some options, i hope they can help you:)

  6. Loollea on May 4th, 2009 5:01 am

    don’t buy a new car, buy an older one and only carry liability coverage on it, save your money and when you turn 25 if your record is still clean you’ll qualify for a good rate

  7. Bill S on May 6th, 2009 5:36 am

    I say get an old car and have liability only. You’ll save in insurance, but you’ll REALLY save thousands on the price of the car itself. I wanted out of payments, so I sold my ’03 F-150 in 2005 and picked up a ’93 Crown Vicoria for $2000. It’s one of the best cars I’ve had as far as cost of operation-insurance, payments-what payments????

  8. cwido25 on May 9th, 2009 4:55 pm

    I don’t know what state or country the supposed “agent” was from but let me clear things up a little.

    1) yes, raising deductables can lower your premium, but you can’t drop comp and carry collision. Most if not all ins. companys will allow you to carry comp, but no collision, but require comp if you want collision.

    2) There are no taxes on insurance, except in Kentucky, which taxes based on municipality and is usually incorporated into your rate.

    3) premium finance companies exist, but most larger carriers no longer work with them. Your better of using a credit card and paying that back

    4) are you living with mom and dad still? If so, your best bet is to insure the vehicle on their policy- if you live elsewhere, you need to get your own policy.

    5)Don’t liability only on a car you just paid $11,000 for. Thats called self-insuring, and unless you can afford to just replace the car your own, its a poor financial decision.

    6) there is no “cheapest provider”. Rates vary, all over the board. go online, call around, you’ll find it. One thing to make sure of though is that 1) your quoting the same coverage everywhere you go 2) that all companies have the same idea of driving record ( if I think you have a clean record, but you don’t, don’t think I wont find out and raise your rate a month into the policy if needed) and 3) know your prior insurance history. many companys will give you a break if you’ve had insurance for 3 years or more. Even if on mom and dads.

  9. CaseyAngelEyes on May 10th, 2009 11:24 am

    $1600 a year seems really high. Try getting a quick quote online & see if it is lower. I am paying less than ½ of what I was before I did.

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    Take care,
    Casey

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