Insurance diff between new and used

[Clifton]

Hey guys, I might be in the market of a new vehicle. I currently have a 2002 Taurus and paying $100/month State Farm. I'm interested in buying a Chevy Cobalt coupe LS model. New ones are getting cheap ($10-12k) because of rebates that used counterparts are about the same if more. For those that own Cobalts, what are you paying for insurance? Is it cheaper because it's used? (depreciation obviously) My only concern is when State farm would jack me up if owning a new Cobalt, a coupe no less. Thanks guys!!

 

[golfgal]

If you are going from a 2000 to a 2010, you can expect a rate increase, but I don't know that it is "jacked up". Insurance rates are set and have to be filed with the state so insurance agents can't really do much about the rates you have other than make sure you get all the discounts for which you are entitled. Call your agent, give them the VIN # if you have it, or at least the year, make and model and they will be able to give you an idea of how much your new rate will be. Comparing rates here isn't going to help you at all because rates vary by location so much. Our rates are less expensive then the next town over even.

 

[The Mystery Machine]

Hey guys, I might be in the market of a new vehicle. I currently have a 2002 Taurus and paying $100/month State Farm. I'm interested in buying a Chevy Cobalt coupe LS model. New ones are getting cheap ($10-12k) because of rebates that used counterparts are about the same if more. For those that own Cobalts, what are you paying for insurance? Is it cheaper because it's used? (depreciation obviously) My only concern is when State farm would jack me up if owning a new Cobalt, a coupe no less. Thanks guys!!

For starters 100/month is pretty high for insurance. Is there a reason it is so high? I would shop around.

50-60/month is reasonable provided you have a clean record. Also raise your deductible to reduce your rate.

If you want to know what they are going to charge, call them up and ask before buying. Then shop around for better rates to see what you can get.

 

[DebbieB]

I work in insurance. Rates are based on the original cost new of a car (no matter what you paid for it), then decrease by the age.

 

[golfgal]

For starters 100/month is pretty high for insurance. Is there a reason it is so high? I would shop around.

50-60/month is reasonable provided you have a clean record. Also raise your deductible to reduce your rate.

If you want to know what they are going to charge, call them up and ask before buying. Then shop around for better rates to see what you can get.

Depends on where you live. In many areas of the country $100/month is CHEEP.

 

[DVC-Don]

Hard to answer. It varies by make, model, trim line, territory, driving record, credit score, dectuctable and any driver training/accident prevention courses.

 

[Cheshire Figment]

For starters 100/month is pretty high for insurance. Is there a reason it is so high? I would shop around.

50-60/month is reasonable provided you have a clean record. Also raise your deductible to reduce your rate.

Sorry, but if you have decent (above minimum required) coverage you will pay for it. Mine is about $125 per month with liability coverage well into six figures, low deductibles for C&C, and some supplements such as rental reimbursement and others. And this is with both safe drive and affiliation discounts.

 

[bumbershoot]

If you have an agent you can call, call them and ask! When we were thinking of a new car, I called my insurance guy, talked to him about the different cars we were thinking of (gave him make/model/year), and he let me know exactly what the premium would be.

 

[The Mystery Machine]

Sorry, but if you have decent (above minimum required) coverage you will pay for it. Mine is about $125 per month with liability coverage well into six figures, low deductibles for C&C, and some supplements such as rental reimbursement and others. And this is with both safe drive and affiliation discounts.

Agree, but there is no harm in shopping around. Sometimes you can get better coverage for less. State Farm at least here was really awful. We had them. They kept raising the bill for no reason and I not joking.

So we shopped and went with Nationwide. Better coverage for less money.

Honestly you would continue to pay without shopping around? Sometimes you have to do it.

 

[HERSEY]

I have always contact my agent for quotes on the cars I was considering.

I also periodically check with other insurances companies to see if I can get the same but cheaper.

 

[golfgal]

Agree, but there is no harm in shopping around. Sometimes you can get better coverage for less. State Farm at least here was really awful. We had them. They kept raising the bill for no reason and I not joking.

So we shopped and went with Nationwide. Better coverage for less money.

Honestly you would continue to pay without shopping around? Sometimes you have to do it.

There is more to buying insurance then cheep premiums. Try filing a claim with Nationwide and see how fun that it. State Farm is a great company that stands behind their products. That is worth a few extra dollars in my book. We have both State Farm and American Family for various insurance needs and couldn't be happier.

Again, they can't just raise rates for no reason, they have to file with the state so there was a reason for the rate increase==you moved to a different zip code, your credit changed, their claims experience in your area was bad, whatever.

 

[The Mystery Machine]

There is more to buying insurance then cheep premiums. Try filing a claim with Nationwide and see how fun that it. State Farm is a great company that stands behind their products. That is worth a few extra dollars in my book. We have both State Farm and American Family for various insurance needs and couldn't be happier.

Again, they can't just raise rates for no reason, they have to file with the state so there was a reason for the rate increase==you moved to a different zip code, your credit changed, their claims experience in your area was bad, whatever.

I stand corrected, oops, it was All State, not State Farm.

 

[TheBigBadWolf]

I stand corrected, oops, it was All State, not State Farm.

I agree about Allstate constantly raising the rates for no reason. I had their insurance for over ten years, and it got to the point they started doubling my insurance every year on one of my cars, two years in a row. For NO FAULT of mine. I have a perfect driving record, have never had a ticket or a wreck in my life, have a perfect credit score (my next agent told me I was in the top TEN PEOPLE he had ever written insurance for, as far as good credit and good driving record). Allstate kept raising my rates on all three cars until they priced me completely out of the ballgame. I loved my agent but finally had to look elsewhere for insurance. I now have Shelter and they've been great.

I agree with calling around and checking different companies for rates. If you have a good driving record and good credit, you can find better deals if you're willing to shop for them.

 

[The Mystery Machine]

I agree about Allstate constantly raising the rates for no reason. I had their insurance for over ten years, and it got to the point they started doubling my insurance every year on one of my cars, two years in a row. For NO FAULT of mine. I have a perfect driving record, have never had a ticket or a wreck in my life, have a perfect credit score (my next agent told me I was in the top TEN PEOPLE he had ever written insurance for, as far as good credit and good driving record). Allstate kept raising my rates on all three cars until they priced me completely out of the ballgame. I loved my agent but finally had to look elsewhere for insurance. I now have Shelter and they've been great.

I agree with calling around and checking different companies for rates. If you have a good driving record and good credit, you can find better deals if you're willing to shop for them.

It was crazy. DH really tried to work with them to fix the crazy rate thing they were doing.

I am glad someone else had that experience with Allstate. I thought maybe we just had a bad office or something.

 

[ZachnElli]

Insurance rates really vary from state to state. I have State Farm and I would love to switch for personal reasons, but nobody can touch their rates for us. When I worked in insurance (up until last summer) Chevy Cobalts were one of the most expensive "normal" cars to insure. I say normal because if you google the list of most expensive cars to insure, the tops are the crazy expensive cars that millionaires buy, but then the Cobalt is in there too.

 

[Golf4food]

Cheap insurance is not always good insurance. Cheap insurance is often bad insurance. Like most things in life, you often get what you pay for. If price is all that matters, then by all means go with the cheapest you can find, but don't complain too hard if you have a major claim and get squat or have to fight for a long time to get anything decent.

Rates are set by each state and must be approved and most states are quite protective of rates so the companies can't just make sweeping changes without approval and that approval is often very grudgingly given and only if there is a lot of convincing evidence to back it up.

Also make sure you are comparing identical policies and that quotes from one company is not giving you a lower coverage on something in order to keep the price down (different maximum, higher deductible, etc.).

And if you live in a high risk area and drive a high risk car (perhaps it is frequently stolen or is in a higher percentage of accidents based on handling or how most owners drive - such as sports car owners speeding or driving more aggressively) then be prepared to pay a higher premium for that luxury.