Car insurance for under 25 driver over $2000 a year?

[nzwasp]

So we are in the process of attempting to sell my MIL 2017 Corolla to her nephew who is 18 / Male / Chinese (unsure that matters) and hes got a quote from meloche for 5k per year and the lowest quote he could find was 3500 per year from some other (didnt say) provider. Ive never had to get car insurance until I was 30 here so is it really common to be faced with that sort of high insurance rates for a first time car owner. I should clarify he owns a shitty 1k car with liability only with Meloche at the moment and I think he pays less than 1K

[shakalaka]

I suppose it is possible. Depends on the car, past record, age etc. Even though $5K sounds astonishingly high. When I was around 22-23, I had my 350Z insured by TD MM and I believe it was around the $2200-$2400 per year mark. I remember it dropped dramatically the day after I turned 25. Like at least a several hundred amount.

[ExtraSlow]

My first car cost me $3500 and $3500/yr for liability only insurance.
Insuring 18 and 19 year-old males is expensive if he can't piggyback as an occasional driver on a family member's policy.

[Zhariak]

Yea, that's kind of crazy man...

When I was 21, I bought a new car around 99k. Fully insured with 2 mil coverage, and I think I was getting auto insurance for around $2,400 a year... When I added renters/tenant insurance when I was 23, my yearly fee actually dropped down to $2,150/year (which covered both auto/tenant). Keep in mind I had no formal drivers training, and had my learners at 14, and full class 5 the day I turned 16.

Did you contact an insurance company directly, or did you reach out to a broker? Always, always call a broker.

The only thing that should make insurance cost more is tickets and/or convictions, as well as lapses in time frames of driving.

[nzwasp]

Actually our cousin is sorting this all out on their own they just asked us if the car was a turbo or something because the car insurance is so much higher for a newer car than the shitter he currently drives. Its a 2017 Corolla S nothing turbo or fast about it. Im sure its just because he is considered high risk and when the car is worth a whole lot more then theres a higher chance of payout. His parents own 3 cars, 2 of which just on the driveway as additional storage closets (hoarders) and their family income is under 35K per year so I dont think they want to insure another car themselves.

Its been a major hassle to sell this car, first I wrote out the vin number and description and mileage. And then apparently that wasnt good enough so I had to take photos of the vin number and mileage, and now they are asking me all these questions about the car that could be found by looking up the info from the VIN. I sometimes wonder if people selling on kijiji have the same problems with kijiji buyers.

[Misterman]

I used to pay 5k/yr for basic PLPD when I was 18, had 5 speeding tickets on my record. Really it just depends on driving record. Tell him to talk to an insurance broker though, let them shop the best deals for you.

[gmc72]

Doesn't sound far off. I got a quote for my 20 year old son for a early 2000's 4 door Civic (doesn't own the car, it was just for the quote) and they came back at $2400/year for basic liability. He had his driving course certificate and everything. This was hi sown insurance, not on my plan or his mothers. Needless to say, he's borrowing his mom's car a lot these days!

[Masked Bandit]

I'm guessing he's looking at full coverage on the new car versus PLPD on the old one?

[RX_EVOLV]

When I was 18 I wanted to get a new Celica GTS and insurance was quoted $5k/year. Ended up getting a new RX8 at 21 and it was $2.8k/yr

[C4S]

Sounds about right, I guess that is not full coverage, right? I paid over $3k for basic third party insurance when I was young, 6k plus for full coverage...so I never bought full coverage till 27 or 28 yr old.....

[dj_rice]

Sounds about right. I just remember once I hit 25, my insurance got hella cheap.

[Sugarphreak]

...

[nzwasp]

Yes full insurance but I mean its not a sports car. Pretty brutal. I guess I was lucky in New Zealand when I was looking at full insurance for my brand new car at 20 and I thought $750 a year was expensive because I had put aftermarket wheels on my car.

[mzdspd]

When I was 18, my insurance was quoted at 4500 for a mazda 3 for full coverage. No accidents or tickets. So I could see it being that high for a corolla.

[dj_rice]

Yes full insurance but I mean its not a sports car. Pretty brutal. I guess I was lucky in New Zealand when I was looking at full insurance for my brand new car at 20 and I thought $750 a year was expensive because I had put aftermarket wheels on my car.

I dont think it has to do with the car you insure mainly as when I started driving I was insuring a POS 1988 Nissan Multi and my insurance was more than the car was worth. Its cause hes 18, no driving/insurance history. High risk category. I'm sure an Insurance Guru named Bill will chime in

[ExtraSlow]

I guess I was lucky in New Zealand when I was looking at full insurance for my brand new car at 20 and I thought $750 a year was expensive because I had put aftermarket wheels on my car. When I was in NZ for four months, the people there thought I was insane for having insurance on the car I bought. I can't recall what it cost, but it was cheap as hell. Man I miss NZ.

[msommers]

Does having Driver's Ed training still provide an insurance discount?

[Masked Bandit]

Full coverage on a new-ish car to a kid that's been driving two years max, $3500+ is the right ballpark.

[Kijho]

Age 24: I was paying $3,576 - 2016 Subaru WRX (4th vehicle). Had an at-fault accident 3 years ago still on record.

Age 25: I bought a townhouse, now I pay $2,688 total for house + car. (Age 25).

Full coverage w/ replacement insurance.

TD Insurance. I called around everywhere and TD was the cheapest with Engineering firm discount.

[revelations]

Full coverage on a new-ish car to a kid that's been driving two years max, $3500+ is the right ballpark.

So it would make sense to buy a 1-2000$, 4 door vehicle and just go with PLPD?

What could the rates be like then?

[Masked Bandit]

So it would make sense to buy a 1-2000$, 4 door vehicle and just go with PLPD?

What could the rates be like then?

Insurance isn't the only input cost, saving $2K on your insurance doesn't do you much good when you have to sink $3K a year into repairs. But ya, when it's time for my kid to be on the road she'll be in something cheap enough to run just PLPD until she's got at least four or five years of clean driving history.

[rage2]

When I came here in 2001 I got quotes ranging from 5600-6500 per year

I had a spotless clean 3 year driving record with no tickets or accidents of any kind, had done a driving course, and even obtained a 10% safe driving discount in BC prior to coming out

In the summer of 2003 the government finally stepped in and basically told insurance companies they had to focus on driving records rather than discriminate based on age. 2000$ would have been a dream back then.
It still makes me sad that I had to pay $7000/year to insure a 944 turbo back in the 90s. Finally turn 25, and bam, cheap insurance! $700/year full coverage on AMGs, it was a dream. Then GRID comes into play, my premiums go up with no claims while bad drivers got 70% off their rates. I still remember kenny having to buy occasional driver insurance to afford insurance on his SLK32 AMG, huge accident claim, GRID comes in and his insurance goes down going to a full time driver. Then he writes the car off. Fuck you kenny. Still old and bitter right here haha.


But ya, when it's time for my kid to be on the road she'll be in something cheap enough to run just PLPD until she's got at least four or five years of clean driving history.
It'll be self driving cars by then haha.

[revelations]

Insurance isn't the only input cost, saving $2K on your insurance doesn't do you much good when you have to sink $3K a year into repairs. But ya, when it's time for my kid to be on the road she'll be in something cheap enough to run just PLPD until she's got at least four or five years of clean driving history.

Nah, thats when you just get decent, but cheap vehicles like Civics and Corollas.

[kenny]

It still makes me sad that I had to pay $7000/year to insure a 944 turbo back in the 90s. Finally turn 25, and bam, cheap insurance! $700/year full coverage on AMGs, it was a dream. Then GRID comes into play, my premiums go up with no claims while bad drivers got 70% off their rates. I still remember kenny having to buy occasional driver insurance to afford insurance on his SLK32 AMG, huge accident claim, GRID comes in and his insurance goes down going to a full time driver. Then he writes the car off. Fuck you kenny. Still old and bitter right here haha.

Don't blame me, your high insurance is probably because you live in a postal code full of asians. :rofl:

PS: or the fact your E55 was written off by HK haha

[Sugarphreak]

...

[nicknolte]

When I was that age, TD quoted me $2800 for liability and accidental on a nine year old Protege. All other quotes were $4500-6000

[LUDELVR]

Yes full insurance but I mean its not a sports car. Pretty brutal. I guess I was lucky in New Zealand when I was looking at full insurance for my brand new car at 20 and I thought $750 a year was expensive because I had put aftermarket wheels on my car.

When I was living in NZ, insurance was optional! At least that what I as told and the 2.5 years there, I never had it at all. All you needed was your WOF and rego and you were good to go. I remember talking about getting insurance and my friends were like, "Why would you buy insurance?" Cars were fairly cheap too and easily had because there was no domestic market. It seemed like getting Japanese tuner cars were so easy to get!

[nzwasp]

When I was living in NZ, insurance was optional! At least that what I as told and the 2.5 years there, I never had it at all. All you needed was your WOF and rego and you were good to go. I remember talking about getting insurance and my friends were like, "Why would you buy insurance?" Cars were fairly cheap too and easily had because there was no domestic market. It seemed like getting Japanese tuner cars were so easy to get!

You get it because if you hit a BMW or Mercedes or something else expensive you would of been fucked.

[LUDELVR]

You get it because if you hit a BMW or Mercedes or something else expensive you would of been fucked.

haha good to know now! Still, the fact that it was "optional" blew my mind away!

[blownz]

I have forgotten about the days of being bent over by the insurance companies. Makes my stomach turn as in 3 years I will have a 16 year old and I was planning on buying him a car and one decent enough to need full coverage... may have to rethink that...

[Xtrema]

So we are in the process of attempting to sell my MIL 2017 Corolla to her nephew who is 18 / Male / Chinese (unsure that matters) and hes got a quote from meloche for 5k per year and the lowest quote he could find was 3500 per year from some other (didnt say) provider. Ive never had to get car insurance until I was 30 here so is it really common to be faced with that sort of high insurance rates for a first time car owner. I should clarify he owns a shitty 1k car with liability only with Meloche at the moment and I think he pays less than 1K

That's par. Tell your nephew to do a sex change if he doesn't want to pay that much.

$1900 is the cheapest PLPD I have seen in 2018.

[killramos]

I wonder if the gender statistics have changed in recent years, because every teenage/early adulthood girl I have ever known have been truly dreadful drivers. Multiple serious crashes by 25 seems common.

Whereas guy friends I know I can only think of one serious crash?

Seems a more interesting topic than the flex thread.