Wth is up with insurance rates?

[young at heart]

You have to extrapolate a little and even then many won’t get it, but I believe the fact that many choose to express their premium in monthly terms instead of annual indirectly contributes to their higher rates.

Don‘t ask me to explain; either you get it or you don’t.

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[WItoTX]

Some dudes comparing Indiana insurance rates to Houston Texas. LOL

OP, you are the exact demographic that started the "no crowd of people is safe" trend among Mustang owners. Not saying you are one of them. But you fit the category.

I felt your pain (Still sort of do). It gets better the longer you own the car. Just embrace it!

 

[Crew4991]

I expected to pay $200/month for insurance, which I thought was normal for a 5.0 Mustang. Apparently it’s not.

I’m 27 and not married living in Texas. Choosing minimums on Collision and Comprehensive with $2k deductible on both, the cheapest I can find is $170 with progressive. Car is being financed.

I have no tickets or accidents and I see people my age saying they pay $120 or less. I don’t understand how their rates are that low.

What are you all paying around my age for a GT that is financed?

Same age but in Denver CO. 2016 convertible is $2400 per year with a $500 deductible and clean record. Insurance is difficult to calculate since it all depends on customer specific discounts, bundling, zip code and other kinds of crap.

Needless to say, your $200 per month is right on par with my insurance.

 

[MCS]

SNIP

Exactly.

Insurance is one of the largest scams in Western Society is legislated and "regulated" which means they are mandatory. Make no mistake, they are a BUSINESS and they are in the business of making their shareholders, stakeholders and board of directors money. Plain and simple. They also allow for the transfer of wealth on a massive scale which is why the governments don't really crack down on them.

Before I woke up one morning and said "Hey, I want to be a firefighter", thus starting 4 years of schooling part-time, blah blah blah, I was a Private Investigator. We used to work for WSIB, Cooperators, and other insurance companies.

One of the biggest scams, specific to a city within Ontario that has a very high migrant population, would be a carload full of people (usually all male and over the age of 18) that would be involved in an accident with another vehicle, almost always at lower speeds, and never a nice vehicle. Always a beater of some kind. After the accident, they all claim they couldn't work due to neck and back injuries. They then find a doctor who will write them a note and then they all go on disability. I'm talking YEARS of free living for every occupant in the car and they would load them up. 5 people in a car! Guess who pays for that? Yep, you guessed it. You and I.

One of my FAVORITE cases I worked on, involved a guy who lived in a HUGE home with his wife and kids. He was in a wheelchair due to an accident where he was rear-ended. This was a million-dollar settlement case. A big deal. They had the van done up with the hand controls, the whole 9 yards. It was winter and, due to the claimant being surveillance conscious, we had two investigators and two cars on this case; either end of the street. To speed this up we filmed him one-night moving, via wheelchair, to the van then standing up and putting it in the back and walking to the driver's side. Didn't look disabled to me. Wanna know what happened? The insurance company forced him to drop his claim. Because we didn't have a video of his face we couldn't prove 1000% it was him but it was enough for them to get him to drop the claim and think they told him "Here is 50k, piss off". Guess who pays for that? The 18-year-old kid paying $10000 a year in insurance who may never have an accident or a claim.

Let me get my tinfoil hat for a second!

I believe that this is one of the largest ways that the governments support those who don't want to work. If they are smart enough to get away with it then the government doesn't have to give them a handout and yet they can still contribute to western society by spending money on groceries, gas, luxury items etc. It is a transfer of wealth from the wealthy, or hardworking people, to those who choose not to work. Sure there are times when this can be a lifesaver for someone who is legit in need however like @Cobra Jet mentioned you have to make good and god damn sure you have everything in writing because more times than not the insurance company will hire someone to make damn sure they don't have to pay. Look at the Florida situation. Those poor folks got it up the backside without even courtesy of a reach around. The news up here is "Most Floridians didn't have FLOOD or STORM SURGE insurance and so they won't get a dime". They all been payin' their bills though you can bet and yet they won't get a dime from the people they been paying because the word "storm surge" wasn't on the insurance policy. Fair? Not even a little.

 

[gone_n_60]

Where the car is garaged has more to do with rates than you might think. Houston is expensive. IIRC, my rates went up about 20% moving from Corpus Christi to Houston. Dropped about 10% moving to FL.

True dat! I lived in Houston a long time and your chances of being involved in a collision go WAY up in that area, and we all now exactly why too. When I moved to a Midwest city rates dropped.

 

[Shouldhavegotthegt]

I always think it’s funny when people say insurance is a scam. Most people don’t have the money in the bank to pay out their deductible let alone the damage and injuries they cause to another when they are at fault. Even if you are a 6 figure earner most won’t have tens of thousands laying around to pay out an accident. That is why there is insurance.

but like others have said, there are a ton of individual variables that determine your rates. Credit is the largest factor, followed by location, then vehicle. If your insurance was always expensive then getting a V8 sports car is going to be expensive. The car has very little to do with it.

I work as a national agent for one of the largest insurance companies in the country.

 

[ORRadtech]

I always think it’s funny when people say insurance is a scam. Most people don’t have the money in the bank to pay out their deductible let alone the damage and injuries they cause to another when they are at fault. Even if you are a 6 figure earner most won’t have tens of thousands laying around to pay out an accident. That is why there is insurance.

but like others have said, there are a ton of individual variables that determine your rates. Credit is the largest factor, followed by location, then vehicle. If your insurance was always expensive then getting a V8 sports car is going to be expensive. The car has very little to do with it.

I work as a national agent for one of the largest insurance companies in the country.

I don't think it's a "scam" exactly. But I take your point.
My wife was at fault in a minor accident, a very minor accident. So minor that no airbags deployed in either car. The woman drove her car off the street afterwards and walked without help or any visible difficulty to the ambulance which she insisted be called. She then proceeded to sue my wife for $3 million. This was two years ago and is still ongoing. Lawyers, that the our insurance company have provided, would surely have cost us thousands had we had to pay them not to mention whatever settlement is finally reached.

 

[TonyNJ]

I don’t know for sure, but I don’t think it being financed changes the rate unless you mean that you have to have full coverage? I wanna say mine is $750 for 6 months with a $1k deductible but I’m 10 years older and prices go down with age.

I’m not sure on the price because it’s $1200 every six months for all three of my cars for full coverage, the mustang being the most expensive to insure by far.

I just paid $800 additional a year to add a Shelby GT500 to an existing policy. That's about 65 a month. I'd be happy to give you my car, and pay your insurance for you if I can be 27 again. Enjoy your youth.

 

[Cordero1]

I pay $90/month & a $500 deductible. It went up a bit due to 3 speeding tickets I've accumulated in the last 3 years. I agree with the message above mine. I'll trade you if I could shave off 13 years off my age.

 

[Shouldhavegotthegt]

I don't think it's a "scam" exactly. But I take your point.
My wife was at fault in a minor accident, a very minor accident. So minor that no airbags deployed in either car. The woman drove her car off the street afterwards and walked without help or any visible difficulty to the ambulance which she insisted be called. She then proceeded to sue my wife for $3 million. This was two years ago and is still ongoing. Lawyers, that the our insurance company have provided, would surely have cost us thousands had we had to pay them not to mention whatever settlement is finally reached.

That has less to do with the insurance company and more to do with the person that hit you. We live in a litigious society and everyone is looking to strike it rich. Hell every other commercial on tv is in a wreck, get a check.

 

[BLSTOIS]

I'm 30 and pay $300 a month for my Explorer Sport and GT...... Surprisingly the Explorer is significantly more expensive than the Mustang despite identical coverage

 

[chefwally32]

Seems expensive, I spend $100 a month for my Shelby, but I am 10 years older so idk.

Im 56 and my full coverage is $64 a month, state farm customer for over 10 years, clean driving record 300/500 $100 deductible

 

[TrackMustang]

I just paid $800 additional a year to add a Shelby GT500 to an existing policy. That's about 65 a month. I'd be happy to give you my car, and pay your insurance for you if I can be 27 again. Enjoy your youth.

As appealing as a GT500 and insuring it for $65 a month sounds, I’m very happy to be able to be active with my young boys every day. I appreciate it more and more as I get older and older.

 

[ORRadtech]

That has less to do with the insurance company and more to do with the person that hit you. We live in a litigious society and everyone is looking to strike it rich. Hell every other commercial on tv is in a wreck, get a check.

I don't disagree. In fact one of our lawyers said the "victim" was trying to fund her retirement account. I was mostly pointing out that the insurance company is bearing the cost of lawyers and settlement instead of us. Will my rates go up? They already have a little bit but it's likely better than what I would have paid for 2 years of litigation plus whatever settlement.

 

[Shouldhavegotthegt]

I don't disagree. In fact one of our lawyers said the "victim" was trying to fund her retirement account. I was mostly pointing out that the insurance company is bearing the cost of lawyers and settlement instead of us. Will my rates go up? They already have a little bit but it's likely better than what I would have paid for 2 years of litigation plus whatever settlement.

if she was at fault in the accident it will go up. Typically when you have an accident all your safe driving discounts are taken away and you get rated for the claim. Unless you have accident forgiveness it will go up

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