Hello, I have a 2006 toyota corolla with 89,000 miles, manual transmission. My question is about insurance costs which I know can vary. I'm a 23 year old male college student, have the good student and driving monitoring discounts, but at full coverage im still paying $144 a month just to drive my car. I wanted full coverage, but do I even need it? I'm not a risky or emotional driver. Here's the details...
State Farm
Liability -Bodily Injury/Property Damage:
$100,000/$300,000/$100,000
Im running low on funds but I can make it to the summer, save I don't need to spend a ton of money in the near future. All advice is appreciated! Even if it means getting a new quote.
Thanks
I wouldn’t say you are being taken advantage of but it’s unclear what coverage you actually have.
If you aren’t financing the car, call them up and tell them you want minimum coverage (no collusion, medical, comprehensive).
You are young so it’s to be expected. Can you be in your parents’ policy for a multi line discount? If not make sure they know you are a student and only drive 20 miles a week.
Either way I’d call the other BIG companies and rate shop. I’d stick with the big guys because things go a lot smoother if you do have an accident.
Also stress to them that you are rate shopping. I did that a few months ago and somehow they were able to increase my coverage while dropping my payment by 50%.
So I guess I take back my original statement, yes insurance is a scam. Plain and simple.
When you hit 25, your insurance cost will crater. They overcharge you until then.
All of us are being taken advantage of by insurance. That's the very nature of insurance.
You have basic liability coverage as required by law in most states. The rates are based on your driving record and a myriad of factors outside your control, such as where you live. I would do some serious insurance shopping to see if you could find a lower premium with another carrier. You might get lucky.
✅ 23 years old
✅ Male
✅ Insurance $144 / Month
Checks out.
Try a multi-company insurance agent who can shop for the best deal. You could elect to go with liability coverage only (no collision or comprehensive) to save money but then you're on the hook if anything happens to the car.
He already has liability only.
Thought he said he was at "full coverage". (To me that's always meant having collision and comprehensive.)
He thinks because he has any coverage, he has full coverage. The details he shows are liability only. But you're right, maybe he meant something else. It is not really clear.
You don't need full coverage for a car that old. Just the required minimum insurance is all you need. As for what you're currently paying, I have no idea if that's good or bad for you. I'm not a fan of State Farm either.
Having had a State Farm insured run a red light and hit me in the past I can say from experience that they are one of the worst. (For example they actually wanted me to store my wrecked car so they would not have to pay for it while they investigated!) Not that any of them are all that great.
First of all don't try to figure out how really an insurance company is calculating your insurance price because they will never tell people the whole picture so they can take as much advantage as they want. That said I do know that insurance is more expensive for male drivers and for single people. Also as others said you are under 25 so that adds to it too. Furthermore having only one car on the policy is another factor that makes insurance price higher.
Also, you are saying "at full coverage im still paying $144 a month" so assuming you have full coverage which is not needed at all for that old of a car. People get full coverage for brand new cars or if they finance a car. Just get the required insurance items such as liability etc.
