General Question

xRIPxTHEREVx's avatar

Help me find a cheap car insurance solution?

Asked by xRIPxTHEREVx (378points) June 9th, 2010

I’ve been hearing a lot of rumors about car insurance prices and stuff, and I really need some opinions. For example, I am 17 and I’d like to know if it’s cheaper to just put myself on my parents car insurance and use our junk car ( i don’t know what insurance company they use) or is it cheaper to get an old car of my own and put it on my own insurance like I’ve heard? All advice on car insurance is welcome, please don’t just limit it to the example. :)

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8 Answers

janbb's avatar

You’d have to confirm with your agent in your particular case, but it would always seem to me to be cheaper to be added on to your parents’ insurance with their junk car. If it is an old car and you don’t carry comprehensive and collision insurance on that car, it wil be cheaper still. That being said, car insurance for a 17 year old will not be cheap.

RealEyesRealizeRealLies's avatar

First off, AAA is the cheapest by far that I’ve found anywhere. I’d been 30 years with All State without a single claim, and they couldn’t lower my rate. I checked everyone and the rates were about the same. A friend told me about AAA and how they saved him money. I filled out their online quote and it was less than half of what I’d been paying. So I switched.

Second, the rates can be much much cheaper if your car is paid off. Like @janbb says, you only need liability without the collision when there is no loan against your vehicle. I never spend more than a few thousand on my cars. I hate car payments! Pay cash for the ride and sign up for liability coverage only. Yes you are SOL if your car gets damaged, but it’s a cheapo so it can be easily replaced.

perspicacious's avatar

My suggestion is that you not take suggestions about rates from this site. Insurance rates vary WIDELY by state. The same company will charge VERY different rates in different states. This is a waste of time for you. Go to one of the insurance quote websites and put in your information to find some real quotes. I will say that generally, it will be cheaper for your parents to insure you on their policy.

perspicacious's avatar

@RealEyesRealizeRealLies I understand that’s your experience in your state. When I checked with AAA, they were significantly higher than what I pay now. Actually, they said they couldn’t believe my rates. It matters which state you are in. If I were in Florida, my car insurance would be $360 more per year for the same coverage with the same company. And for a teenager, the difference would be around $1000 difference.

YARNLADY's avatar

We have All State and have found no lower rate for the amount of coverage we have. Be aware that different rate quotes include different amounts of coverage.

When you are talking to the agent, be sure to ask only for the minimum allowed by law in your state. That way, the quotes should be based on the same information.

The advantage of being on your parents policy is that you will most likely have a better plan than being on your own. In most states, your parents have to sign for you if you are still a minor.

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