@BIFM wrote:That's actually not true about age, but it's dependent on the insurance company as to how they reduce your rates. Some will drop it by 20% the month you turn 25, and others will gradually reduce your rates as you get closer to the magic number. This is because statistically, males under 25 are the most prone to getting into accidents due to immaturity and inexperience. This is also why it's more expensive to rent a car until you turn 25. at 21, with 5 years of driving, 0 tickets, 0 claims my insurance ran close to $1100 per 6 months, now barely being 24, for the same coverage it runs $341 for 6 months. There are several different factors that contribute to your rates, however age is one of them.
Trust me though, my rates are currently optimized for my lifestyle/vehicle how they are already and it will be the same for the next one. I work in finance living and everything in my personal life gets the same cost/benefit analysis. Everything you've suggested was looked at long before I made this post, hah.
Like you said, on a $40,000+ vehicle, a $1000 collision deductible is negligible, especially since you'll end up paying that difference in premiums within the first 2 years anyways if you don't get into any accidents....it's not even remotely worth it for a low collision deductible if you can afford this much vehicle and don't make claims every other week.
So, your age didn't effect the rates. It was your driving experience. I wouldn't expect any larger of a decrease when you turn 25 than the decreases you have been getting each year already.
Depends on the person. For my comp, a claim any time within the life of the vehicle would justify the lower deductible. For me, that is worth not having to worry about a broken windshield ect. For collision though, for me to lower the deductible I would have to have a claim every few years to make it worth it. I think $1000 vs $500 was every 5 years. So, that is worth it too me. If I backed into a pole, I wouldn't want to shell out a $1000 to get it fixed. Some lenders also require a $500 deductible and do not allow you to carry a $1000 deductible.
Your rates at 21 were like my rates on a new car at 18, ouch. Glad they are more affordable now. Odd thing, my rates in Washington state were a lot higher than California. Don't even mention the car rental. Ahhh, it pisses me off they can discriminate solely based on age. Statistically old people get in more wrecks as well. Why not charge them more? As long as we carry out own insurance, and use a credit card. We are no more financial risk than anyone else. Not even going to go there...lol
But, even partial USAA membership waives the underage fee for most companies. Check it out 
Have you gotten the loan yet? I had no problem getting my loan putting $0 as the rent.
USAA is not comparable to any other insurance company, so it and your historical insurance rates there are completely irrelevant to me. Your rates would've been almost exactly the same as mine, and quite possibly more (considering I lived in Kansas at the time, a state with some of the lowest accident numbers in the country) with a different company. I have $100 comp and have always had it that way. Notice I said COLLISION, not comprehensive in my last post.
Also, it is a commonly known fact that age is a factor in insurance rates up til age 25...the only person you're trying to convince here is yourself... A quick google search can show you that. For example, a 30 year old first year driver is still going to get lower insurance rates than a 20 year old. Age and experience BOTH play a role in your rates. See data at the bottom of the page for statistical reason why insurance companies structure it this way...the numbers don't lie.
Nope, haven't gotten the loan yet, waiting at least one more month so that my lowered utilization shows up on credit report and bumps my score up above 700. I wouldn't be concerned about the app if the car was only 16k, but as the loan is for anywhere between 32-40k depending on down payment and my term is a lot longer, my no-rent situation can play a bigger part in approval...hence the question originally posted.
Car Crash Statistics Based on Age
- Teens = Highest Risk Group: For every mile driven, teens between the ages of 16 and 19 are four times as likely to be involved in a car crash
- Teenage Car Fatalities: 5,000 teens in the 16 to 20 age group die each year as a result of a car crash
- Teenage Car Injuries: 400,000 teens in the same age group are injured each year in car accidents
- Disproportionate Population / Fatality Ratio: Teens make up 10% of the population but represent 12% of car crash fatalities
- Cost: 30% or $26 billion per year in costs are accounted for by drivers under the age of 24
- Driving Habits: Teenagers are more likely to speed, tailgate and only 10% report wearing seatbelts
- Teen Male Drivers: Of male drivers ages 15 to 20 killed in car crashes, 38% were speeding and 24% were under the influence of alcohol
- High Risk Age Groups: People between the ages of 15 and 24 and over 75 are the groups most likely affected by car accidents
- Senior Drivers: Drivers over the age of 65 are second most likely to die in a car crash
- Safety Disparity: Despite the fact that older drivers are on average slower, safer drivers, they are more likely to die in a car accident than younger drivers
I have only had USAA insurance for a couple month. I had Safeco before that.
I read your post, I knew you were referencing collision.
I had $8k in equity on my trade and I got the car for below market. They also said I understated my income, so I guess that all does help. You are putting a good amount down and have a decent income. So, in any case. I think you should just be honest with your rent situation.
Your stats also back up the thing about seniors. Yet I still don't see any senior surcharges at the rental companies.
Good idea to wait. Get your score up and then do some rate shopping. I don't think you need to be a full USAA member to get an auto loan with them. I had a blank check approval (they said up to $50k but I told them I don't want to spend over $20k) with them for 60 months at 1.9%. You could give them a try along with other CU's like PenFed. Go into the dealer armed with a pre-approval. Then challenge the dealer to beat it. The dealer was able to beat USAA for me.