topic Re: Auto Insurance in Auto Loans

Auto Insurance

Anonymous — Sun, 17 Mar 2019 22:20:51 GMT

I guess a better credit score helps you get a better price on car insurance right? So maybe you guys know something about car insurance..

I've gotten my credit score pretty decent now but I have never had ny kind of auto insurance in my life so the rated I get quoted are absolutely rediculous.. Insanely expencive..

What can I do to break into cheap auto insurance? Like build my insurance score or whatever..

I was thinking that I could just regiter and insure a motorycle for cheap way into insurance so I can get some "history" or however that works, so I wouldn't be a first time insurance buyer when I go to insure a car.

Would that work? Any good tricks to get out of paying rediculously expencive insurance to start off with?

Thanks..

Re: Auto Insurance

Remember0 — Mon, 18 Mar 2019 05:25:28 GMT

Well I hate to be the bearer of bad news but auto insurance isn't quite like that. It is very true that having no auto insurance does create for some very high rates. While I am not an expert here, I don't think having motorcycle insurance will help solve the problem. Perhaps you can try to get a non owners auto insurance policy from the likes of State Farm or AAA (in some states)? Non owners policies can be much cheaper and that way you will be able to answer yes to do you currently have coverage. Another pro tip: buy more than state minimum.

Also it can just be that you are young or live in the wrong part of the country. As an example a 20 year old living in Detroit is going to have insane rates no matter what. Where do you live and how old are you? Also what do you define as very expensive?

Re: Auto Insurance

Anonymous — Mon, 18 Mar 2019 12:53:52 GMT

Shop around!

In my 19 year old (at the time) daughters case GEICO was about 1/3 the price of Progressive!

Regarding credit score and insurance some (not sure if all) insurance companies will allow you to ask to not be rated on your credit score. If your score is bad this helps if it's good it hurts.

Re: Auto Insurance

Anonymous — Mon, 18 Mar 2019 16:52:29 GMT

Like an above poster mentioned, I don't think getting motorcycle insurance will really help your cause for insurance costs. Insurance has a lot of factors into play beyond just your credit score, I don't know the exact percent the score impacts your quote though.

History is big, but in this case since you do not have any, that's a red flag to them.. as you're unpredictable. I did not see your age/gender, that's also another flag for them. Obviously vehicle is huge too, as they look at what the car would cost to fix/ultimately total the vehicle. Even stuff like location hits you. Then obviously no brainer ones like prior moving violations affect it, but in this case im assuming that doesn't count.

YMMV, but I recommend taking not only shopping around but check out the newer aged options where they track your driving/present a price point off it. Root is an example, though I do not know if you have coverage while you do their driving trial?

Good luck!

Re: Auto Insurance

Anonymous — Mon, 18 Mar 2019 17:56:22 GMT

Late 20's, male, rural small town northern Michigan, no points or accidents, 750 ficos, have a CDL-A and chauffeur, no insurance history..

They are wanting mid 200's a month for basically any car for legal minimum insurance- rediculous..

I figure my only problem is having no insurance history so maybe getting motorcycle insurance in my name for a year or 2 would solve the history problem as cheaply as possible?

I also thought about starting with classic car insurance to get some history as cheaply as possible.. Or a motorhome?

I have a bike, a motorhome, and a bunch of cars. All paid for, never had any auto loan or any loan other than an alliant ss loan to build credit..

I just need to break into getting my own insurance..

Re: Auto Insurance

Remember0 — Mon, 18 Mar 2019 20:04:00 GMT

Well there's part of your problem right there. MI has the highest (or second highest) rates in the nation.

That said, I'll repeat that insurance doesn't work how you are imagining. Having motorcycle insurance won't build your "insurance history" like a credit report. Classic car would help (assuming you get liability insurance on those classic cars) as would a non-owners policy (which may not be possible if you own a bunch of cars).

I don't really understand how you are brand new to insurance if you live in a rural area and own a bunch of bikes/motorhomes/cars, but I digress...

Re: Auto Insurance

Anonymous — Tue, 19 Mar 2019 03:07:12 GMT

How does it work then?

What is the smart way to build insurance history?

Or do they just have you in a trap to **bleep** you and their is nothing you can do about it?

Re: Auto Insurance

MitchDeerfield — Tue, 19 Mar 2019 05:24:57 GMT

Bite the bullet and get the minimum required car insurance. If you have illegally dodged buying required car insurance for all these years, no wonder they are suspicious.

You are trying to "game" the system, how about playing it straight?

Re: Auto Insurance

Jnbmom — Tue, 19 Mar 2019 05:37:53 GMT

You have never insured any of your various vehicles??

Re: Auto Insurance

Anonymous — Tue, 19 Mar 2019 16:50:08 GMT

I haven't done anything illegal. WTH

"Game the system"?

Isn't this entire forum about "gaming the system"? - Yeah..

Or are you just pissy to see someone not throwing away thousands and thousands of dollars on car loans like you?

Re: Auto Insurance

Anonymous — Tue, 19 Mar 2019 17:22:17 GMT

@Anonymous wrote:
Late 20's, male, rural small town northern Michigan, no points or accidents, 750 ficos, have a CDL-A and chauffeur, no insurance history..
They are wanting mid 200's a month for basically any car for legal minimum insurance- rediculous..

I figure my only problem is having no insurance history so maybe getting motorcycle insurance in my name for a year or 2 would solve the history problem as cheaply as possible?

I also thought about starting with classic car insurance to get some history as cheaply as possible.. Or a motorhome?
I have a bike, a motorhome, and a bunch of cars. All paid for, never had any auto loan or any loan other than an alliant ss loan to build credit..
I just need to break into getting my own insurance..

As a previous poster stated, the biggest issue in your price is the state that you live in. I live in Michigan and work in the insurance industry, you are not going to get insurance for cheap. It doesn't matter if you have a long history or not, Michigan's PIP laws will cause you to have high insurance. You are just going to have to suck it up and get insurance, once you have it for 6 months you can start shopping around for better carriers. After that 6 months the better carriers won't force you to pay in full and give you a little bit better rates ( not much though).

Re: Auto Insurance

Anonymous — Tue, 19 Mar 2019 17:29:09 GMT

For sure shop around. I was with USAA and then they tried raising my rates even as I got older, and my rates should have gone down. BYE FELICIA. I am 21 drive a 2011 Toyota paid for and carry comprehensive and liability for about $70 a month through GEICO. Ever other company wanted $200+ a month.

For reference I live in rural Missouri and I am 21. I have had Geico for a year though and they have never raised my rate.

Re: Auto Insurance

MitchDeerfield — Tue, 19 Mar 2019 18:25:44 GMT

Michigan residents must carry liability insurance, personal property protection (known as PPI) and personal injury protection (known as PIP).

PPI pays to fix damage you cause to others’ property, such as a fence or garage, while driving, or damage you cause to others’ parked cars. PIP primarily covers injuries that you and your passengers suffer in a crash, no matter who caused the incident.

PIP doesn’t have any minimum limit to choose; the coverage is unlimited in Michigan if needed. However, you must select at least the following amounts of liability insurance and personal property protection:

$20,000 bodily injury liability per person.
$40,000 bodily injury liability per incident.
$10,000 property damage liability per incident.
$1 million PPI.

Re: Auto Insurance

Anonymous — Tue, 19 Mar 2019 19:03:57 GMT

@Anonymous wrote:
Late 20's, male, rural small town northern Michigan, no points or accidents, 750 ficos, have a CDL-A and chauffeur, no insurance history..
They are wanting mid 200's a month for basically any car for legal minimum insurance- rediculous..

Well, in order to register vehicles in my name where I live. I would need to show proof of Insurance. So I'm guesing all of your vehicles are not street legal? I would just use one of the newest safest cars you currently own, and insure it for the minimum amount possible until the 6 month mark. Auto and Motorcycle are not the same thing.

Unfortunatley there is no way around this issue, if you want to drive legally that is. You'll just have to bite the bullet initially, and wait it out for better rates later on. Side note, you may also be eligable for a multicar discount by insuring more than one Auto on the policy.

I get a break for insuring two cars, so I have basic liablity on my mom's old Minivan that sits in the driveway. Saves me about $40 per month.

Re: Auto Insurance

Anonymous — Sat, 23 Mar 2019 03:02:35 GMT

"Illegally" was mentioned because of state minimum coverage laws - if you have driven owned cars without minimum coverage you technically broke the law. If you were to get pulled over for any reason and couldn't show proof of insurance you would have legal consequences as well as much higher rates to get insurance to be able to drive again. Insurance is required for all cars a person drives, not just those bought on loans. Definitely after your first 6 months of coverage you should be able to shop around for a lower price. And WOW $200 for basic coverage is crazy, glad prices aren't that bad where I live. Sheesh.