Is my mom’s insurance really going to be $407 a month!?
She’s in the process of buying a used 2015 Chevy Tahoe, and the dealership’s broker has been looking for the best insurance quotes. The cheapest one he found was with Geico, coming in at $407 plus change for full coverage. My mom is planning to finance the vehicle, so that’s the rate we’re looking at.
To me, that seems a bit steep. My mom is 66 years old, has been driving since she was 17, and has a clean driving record with no accidents or violations in the past decade. Is there a reason her rate is so high? For context, she currently pays $265 a month for minimal coverage on her old car, so I expected a bump in cost, but $407 feels excessive. Any insights would be greatly appreciated!
It’s understandable to be concerned about the cost of insurance, especially when it seems high compared to what your mom is currently paying. Several factors could contribute to the $407 monthly premium for the 2015 Chevy Tahoe:
Vehicle Type: The Tahoe is a larger SUV, which generally comes with higher insurance premiums due to the cost of repairs, replacement parts, and the potential cost of liability in an accident.
Coverage Level: Since your mom is looking for full coverage, which includes comprehensive and collision coverage in addition to liability, the premiums will be higher than a basic liability plan.
Location: New York State, particularly in urban areas, often has higher insurance rates due to increased risks of claims (like theft or accidents).
Insurance Market: The competitiveness of the insurance market can vary, and sometimes the rates from certain insurers, such as Geico, may not be the most competitive for everyone, even if they are the cheapest your mom’s broker found.
Age and Experience: While her age and clean driving record are positives, insurance companies also consider other factors like the demographic profile and driving statistics in her area.
Discounts: Make sure to ask about any potential discounts that may apply (like for being a mature driver, bundling policies, or having other safety features).
It might be worthwhile to get quotes from a few more insurance providers to see how they compare. Additionally, encourage your mom to review her coverage options and consider whether there are areas where she can adjust them to fit her budget better.