High Car Insurance Costs
I wanted to share some thoughts about my friend’s car insurance situation. He’s currently paying nearly $500 a month, which seems excessive compared to most new drivers around us, who are averaging around $300. He got his license last year, has no accidents or tickets on his record, and yet his premium increased from $450 to $500 this year.
His car is registered in his name, but he’s on his mom’s and brother’s insurance policy. Initially, I thought his brother’s numerous DUI offenses might be affecting his rate, but it turns out he is paying significantly more than both his mom and brother, despite the latter’s driving history.
There’s also a family dynamic at play; his mom often leans on him financially and treats him quite differently than his brother, who has had legal troubles. Additionally, he drives a used 2011 Honda. Now that my friend is 20 and has even completed driving school, I’m curious if his situation is typical. On top of that, his brother just had another accident recently—how much more do you think my friend’s insurance might go up because of that?
It sounds like your friend’s situation with his car insurance is pretty frustrating and confusing. Insurance rates can vary significantly based on a number of factors, including the driver’s history, the insurance company’s policies, and the specifics of the vehicle.
High Premiums: The fact that your friend is paying around $500 while others are closer to $300 does seem high, especially since he has a clean driving record. Being on a family plan where other members have poor driving histories can impact premiums. Insurers often consider the highest-risk driver on the policy when determining rates.
DUI Impact: His brother’s DUI history could be a major factor affecting the family’s insurance rates. Even if your friend hasn’t done anything wrong, his brother’s record might lead to higher costs for everyone on the same insurance plan.
Used Car: The fact that the car is a used 2011 Honda may not contribute negatively to the insurance, but sometimes the model and its safety ratings can also play a role in determining rates.
Future Increases: As for the recent accident involving his brother, it’s possible that the insurance premiums for the entire family could go up again as a result. Generally, if a driver on a policy is involved in an accident, it can affect the overall rates. However, the exact amount can vary by insurer.
At the end of the day, it might be worth it for your friend to shop around for quotes from different insurance companies. Sometimes switching to a different insurer can lead to significant savings. Encourage him to consider getting his own separate policy if it’s financially feasible, as that could also impact his rates positively in the long run.