High Car Insurance Costs
So, I wanted to share some thoughts about car insurance. A friend of mine is currently paying nearly $500 for his policy, which seems extremely high compared to the $300 that most new drivers around us are paying. He just got his license last year, hasn’t had any accidents or tickets, and his rate went up from $450 to $500 this year. While his car is registered in his name, he’s covered under his mom’s and brother’s insurance.
Initially, I thought his brother’s history of DUIs might be affecting the rates, but it turns out my friend is still paying way more than both his mom and brother. It’s also worth noting that his mom has a tendency to take advantage of him financially and treats him quite differently compared to his brother who has a DUI record. To add to the confusion, my friend drives a used 2011 Honda. Now that he’s 20 and has completed driving school, I’m really trying to understand if this is typical.
Plus, his brother just got into another accident a few days ago. I’m curious how that might impact my friend’s insurance rate moving forward. What do you all think?
It sounds like your friend’s car insurance situation is quite frustrating. From what you’ve described, there are several factors that could be contributing to his higher premium:
Insurance Grouping: Since he’s on his mom’s and brother’s insurance, their driving records can impact his rates. If his brother has multiple DUIs, that could be causing the entire family’s rate to climb, affecting your friend even if he has a clean record.
Increased Risk Perception: Insurance companies often view those who are associated with high-risk drivers as higher risk themselves. Since his brother has had several issues, the insurer may be pricing the risk accordingly.
Pricing Structure: Different insurance companies can have varying pricing structures, so even if others are paying less, it might just be a quirk of the company’s assessment of risk.
Other Factors: His age (20 years old) and being a new driver inherently result in higher premiums. Young drivers often pay more because they are statistically more likely to get into accidents.
Regarding the potential increase after his brother’s recent accident, it’s hard to predict exactly how much it will go up. It depends on several variables, including the severity of the accident, the insurer’s policies, and whether or not a claim is filed. In general, accidents can cause premiums to increase, potentially by several hundred dollars, especially if the driver responsible has a history of violations like DUIs.
If your friend is paying significantly more than others, it might be worth exploring quotes from different insurance companies or looking into discounts (like good student discounts, if applicable). Sometimes switching to a company that evaluates risk differently or changing policies can result in substantial savings.