Am I overpaying for auto insurance?

[J.Apple902]

I'm 24, just bought my first car and now paying my own policy. I have Progressive which requires a $97 a month payment for a 6 month policy just under $600 total. I drive a 4-door 2009 Dodge Avenger, don't have any moving violations, college graduate, about to be 25. My buddy pays $350 for Geico, but I got a quote from them and it wasn't far off from Progressive?

Help.

[disneysteve]

We really can't answer this for you. It is very specific to you, your background, your age, the car you drive, and, most importantly, where you live. Your credit score even comes into play with many companies.

The best advice I can give is to take some time to get quotes from other companies. Keep in mind that your rate typically drops when you turn 25 so you might want to wait until then to shop around.

There are many reasons why your friends' rate could be different including all of the factors I mentioned plus things like the value of his car, what safety features it has, etc.

[BMEPhDinCO]

As mentioned, there are several factors that could come into play.

Do you have any old violations? Where do you park it? How far do you drive? Do you have any other products with the company? What color is your car? What kind of driving patterns do you have (ie work-home or pleasure)? How much do you owe for the car? What is your credit score?

We pay $108 per month for two cars - but we're 27/28 and married and have good credit and park in a garage and so forth.... it is very variable but if I was you, I'd wait until you turn 25 + 1 week (for it to show in the system) and then shop around online or over the phone - ask them to hold off on pulling your credit report, just estimate it (you should know it! Get to MyFico.com and buy one if you don't). Also ask what you could do to lower it - ie, get rental insurance with them as well.

[snafu]

When you are 25 y/o, you may find it beneficial to use an insurance agent who shops your particulars to all the re-insurers for the best rate. As stated, auto insurance is very case and location specific.

[bjl584]

I pay $680 for a full year on my auto. I have full coverage and a $1000 deductable.

Several things come into play with auto insurance.

Age, location, miles you drive per year, driving record, type of car you own, your specific state's laws with insurance and tort law, sometimes your credit history, amount of fraud that takes place in your area, and others.

So long as you maintain a clean driving record your rates should drop as you get older. All I can advise is to keep shopping around and keep being a safe driver and claim free.

[J.Apple902]

Thanks for the fast responses guys.

I should have zero violations on my current record (two speeding tickets about 8 yrs ago, was on parents policy).
I park it at work (private lot), and on the streets of Chicago (2miles from downtown). I do not remember that coming into play tho.
I drive about 55 miles per day total, if it is my turn to drive bc I carpool.
I do not have a bundle.
Basically just drive for work bc I live in a city.
The car is paid off.
The color is silver (4 door sedan)
My credit isn't great. Right around 600 :/ which I am beginning to believe is my main issue.

Thanks again guys! I'll probably fight with this $580 policy for the remainder and when I turn 25 in 4 months (ewwwww) I'll shop around.

As mentioned, there are several factors that could come into play.

Do you have any old violations? Where do you park it? How far do you drive? Do you have any other products with the company? What color is your car? What kind of driving patterns do you have (ie work-home or pleasure)? How much do you owe for the car? What is your credit score?

We pay $108 per month for two cars - but we're 27/28 and married and have good credit and park in a garage and so forth.... it is very variable but if I was you, I'd wait until you turn 25 + 1 week (for it to show in the system) and then shop around online or over the phone - ask them to hold off on pulling your credit report, just estimate it (you should know it! Get to MyFico.com and buy one if you don't). Also ask what you could do to lower it - ie, get rental insurance with them as well.

[YLTL_Dan]

I pay $680 for a full year on my auto. I have full coverage and a $1000 deductable.

Several things come into play with auto insurance.

This part is very important - increasing your deductibles can make a big difference. Also, check your other coverage amounts and compare them with state minimums. I'm not saying to only get state minimums, but sometimes we get talked into too much insurance and over-paying. I increased by deductibles to $1,000 and it saved a couple of hundred dollars a year. Just make sure you have an emergency fund to cover the deductible amount just in case something does happen.

[Robert742]

Thanks for the fast responses guys.

I should have zero violations on my current record (two speeding tickets about 8 yrs ago, was on parents policy).
I park it at work (private lot), and on the streets of Chicago (2miles from downtown). I do not remember that coming into play tho.
I drive about 55 miles per day total, if it is my turn to drive bc I carpool.
I do not have a bundle.
Basically just drive for work bc I live in a city.
The car is paid off.
The color is silver (4 door sedan)
My credit isn't great. Right around 600 :/ which I am beginning to believe is my main issue.

Thanks again guys! I'll probably fight with this $580 policy for the remainder and when I turn 25 in 4 months (ewwwww) I'll shop around.

I sold auto insurance for many years, and I don't know which insurance company will have the best rates for me, until I shop around. The car insurance market is changing all the time. If you want to pay low rates: shop once a year and check the rates of all the leading auto insurance companies.

Start shopping two months from now, and get quotes effective as of the date you turn 25. Be sure to tell the insurance companies about your carpooling, because it may get you a discount. Work on improving your credit and keep shopping each year. As you get older, your credit gets better, and you shop for the best rates, you should be able to greatly reduce your insurance bill.

Higher deductibles are also a good way to save, but take as much liability as you can afford: higher liability limits help drivers with clean driving records qualify for lower rates.

[ecoadapt]

We really can't answer this for you. It is very specific to you, your background, your age, the car you drive, and, most importantly, where you live. Your credit score even comes into play with many companies.

The best advice I can give is to take some time to get quotes from other companies. Keep in mind that your rate typically drops when you turn 25 so you might want to wait until then to shop around.

There are many reasons why your friends' rate could be different including all of the factors I mentioned plus things like the value of his car, what safety features it has, etc.

Very well said. There are really a lot of factors that affects this! I believe, you'll learn from it later than sooner!

[jadet]

You can run a quote through those sites that run it through multiple sites.

[EarlyRetirementJoy]

Monthly pay option fees

I worked for an auto insurance company that wrote in quite a few states, including Illinois, for over 15 years. One of your issues may be that you are paying monthly rather than in full. There can be significant payment fees attached to a monthly bill pay selection. The other, as you've already indicated, is most likely your somewhat low financial score.

Distance to work has become less significant over time from a rating standpoint in most states, but do check that all quotes are using the same annual mileage calculations.

An independent agent in your area should be able to quickly run a quote for you on all of the companies they represent. You then might want to call some of the direct writers like State Farm, Allstate and Farmers to get a sampling of potential rates available. Make sure the payment plans are the same when comparing, in addition to the coverage and coverage limits selected.

[EarlyRetirementJoy]

You can run a quote through those sites that run it through multiple sites.

I'm not currently aware of any site that actually lets the consumer see multiple quotes online. (Agents can do so, but they pay quite a lot for the privilege.) What generally happens on these sites, Net Quote as an example, is that your request is sent out to a large number of insurance companies who then hurry to the phone, or to their computers, to get back to you with a quote for just their company or companies as quickly as possible. So you will end up with lots of quotes, but as a result of lots of emails or phone calls, rather than a single of either.

[Robert742]

I'm not currently aware of any site that actually lets the consumer see multiple quotes online. (Agents can do so, but they pay quite a lot for the privilege.) What generally happens on these sites, Net Quote as an example, is that your request is sent out to a large number of insurance companies who then hurry to the phone, or to their computers, to get back to you with a quote for just their company or companies as quickly as possible. So you will end up with lots of quotes, but as a result of lots of emails or phone calls, rather than a single of either.

Several years ago, there were a few websites providing online quotes from multiple car insurance companies, but I haven't found sites still doing this recently, other than Progressive & Esurance.

The best way to get auto insurance quotes online is to go to the individual company websites. If you can't get a quote online, the websites usually have agent locators so you can find a local agent. The websites which collect your information and have agents contact you, can save you time. Agents will call you -- have them quote you, and if you are no longer interested, tell them so, and ask them to not call you about it again. Doing this will stop follow up calls. It's good to speak to an agent to review the quote to make sure you are getting the best & most accurate price.