Is my mom’s insurance really going to be $407?!
She’s in the process of purchasing a used 2015 Chevy Tahoe, and the dealership’s broker has been searching for the best insurance rates. The best quote so far is from Geico, coming in at $407 and some change per month for full coverage. Since she’s planning to finance the vehicle, that’s what she’ll be paying.
At 66, my mom has been driving since she was 17, has an impeccable driving record with no violations, and hasn’t had an accident in the last decade. It feels a bit steep to me. Just to give you some context, she’s currently paying $265 a month for minimal coverage on her old car. While I can see how $407 could make sense given the upgrade, it still seems high.
Does anyone have insight on why the rate is so much? I’d appreciate any thoughts!
It’s understandable to be surprised by the insurance quote, especially considering your mom’s excellent driving record and age. There are several factors that can contribute to higher insurance rates, even for a driver with a clean history:
Type of Vehicle: The Chevy Tahoe is a larger SUV, which typically has higher insurance costs due to increased repair costs, higher likelihood of theft, and potentially higher damage costs in an accident.
Location: Being in New York State, and particularly in urban areas, can significantly affect premiums. Areas with higher crime rates or accident rates usually have higher insurance costs.
Coverage Type: Full coverage usually means comprehensive and collision coverage in addition to liability. This can drive up the monthly cost, especially for a newer used vehicle.
Reputation of the Insurer: Different insurance companies assess risk in various ways. Geico might have specific underwriting criteria that influenced the higher quote.
Credit History: In many states, including NY, insurers may consider credit history as a factor in determining rates.
Market Conditions: Rates fluctuate based on broader market conditions, including trends in claims and payouts for similar vehicles.
It’s a good idea for your mom to compare quotes from a few different insurers and also to review the coverage levels to see if there’s a way to adjust them to better fit her budget. Another option could be discussing possible discounts with Geico or any other insurers she contacts, such as for low mileage, being a senior, or bundling with other types of insurance.