car insurance-Massachusetts-300+ $/month.......WTF?

[soopy]

Hello,

I am presently making a move from Madison, WI to Natick,MA.

I've been thinking of pros and cons of buying a car. There is utility standpoint case for a car but I am flabbergasted by insurance rates. I am shocked that the cheapest quote I received, which was from Geico, after comparing it with Progressive and Liberty Mutual was 300+ $. WTF.

Is this the norm?
 
I moved to the USA for graduate school in 2014, got my license in October 2015, never owned a car/insurance till date and accidentally hit the rearview mirror of a car that yielded a damage of about 100$ using my rental in June 2016. Are these governing factors?

I am considering a motorbike now since I've ridden a few 100-150ccs in India but none like the 250-500-1000cc monstrosities which seem to be the norm here. Will that work out to be cheaper? How badly overhyped, is riding in snow?

I would gladly ride a bike if not for a knee injury that needs surgery and recovery time's about 3-4 months.

Worst case I might have to run/walk(funny my knee lets me do that) to work, shower and get to business. 

Any suggestion would be helpful.
Thanks.

[littlebird]

Are you sure that's per month? That's what we're paying in Massachusetts per year... But, then again it's very dependent on your age, gender and the car you're insuring.

[soopy]

Are you sure that's per month? That's what we're paying in Massachusetts per year... But, then again it's very dependent on your age, gender and the car you're insuring.

I am sure it is every month. I a male and 27 years old and I am looking to insure a 2009 Prius.

I ran a hypothetically scenario of living in Madison but inputting all the same other parameters. My rate was 125$.  I am not sure what in Massachusetts makes me such a high-risk liability. I asked my to-be housemate, whose been in MA for an year, about his rates and he pays 150. 

[patchyfacialhair]

I see a few possible red flags.

1) Natick could be considered part of the Boston metro bubble meaning higher rates for city as opposed to country driving. This is just a guess.

2) Your post is unclear: you got your license in October 2015, but "never owned a car/insurance till date." What does that mean? you haven't ever had insurance of your own? If so, insurance companies take years of driving and current insurance status into consideration when pricing policies. Those with less experience pay more, and those without insurance (regardless of the reason) generally pay more.

3) Was that small collision paid by you out of pocket? Was it reported to insurance and paid by them? If paid by insurance, even though it's a small claim, you're now at a much higher risk level, justifying higher rates for a few years.

Regardless of your age, you have about 2-3 years of driving history, which would make you equivalent to an 18 or 19 year old getting their own policy away from their parents, which generally means it costs more.

Keep shopping around or consider going car-free at those costs.

[ontheway2]

I don't know about MA rates, but that does seem high.

However, with your short history, you are a similar risk as insuring a teenage boy which is known to be really high. If you are single, that can also increase your rates.

[soopy]

I don't know about MA rates, but that does seem high.

However, with your short history, you are a similar risk as insuring a teenage boy which is known to be really high. If you are single, that can also increase your rates.

Every one of my buddies who moved to the USA from India for graduate school have a reasonable under 180$ insurance rate and they all got their licenses at the same time as me. But they do live in parts of the country that isn't MA.

[soopy]

I see a few possible red flags.

2) Your post is unclear: you got your license in October 2015, but "never owned a car/insurance till date." What does that mean? you haven't ever had insurance of your own? If so, insurance companies take years of driving and current insurance status into consideration when pricing policies. Those with less experience pay more, and those without insurance (regardless of the reason) generally pay more.

3) Was that small collision paid by you out of pocket? Was it reported to insurance and paid by them? If paid by insurance, even though it's a small claim, you're now at a much higher risk level, justifying higher rates for a few years.

I got my license to drive zipcars and university vehicles on need-to-drive basis which isn't possible in Natick. That is why I had no insurance despite having a license.

I ran a scenario omitting the accident in an incognito window(to avoid the cookies and trackers) and the rate was still 290$. So I am not sure about the accident claim either.

[patchyfacialhair]

Very well then. It's probably a combination of your relative lack of driving experience and lack of your own insurance. One more thing, US insurers take into account your credit score when pricing out insurance. If you have a decent score, great...if not, then it's negatively impacting this quote.

Last, you should end up with a vastly lower quote if you only insure for liability and medical. Physical damage coverage for your vehicle might be one of the more significant portions of the policy.

[maizefolk]

Big cities have much higher insurance rates than smaller cities because accident rates and (particularly) car theft are much more common in bigger urban areas. My own insurance (same car, same insurance company) dropped by ~50% when I left California (the SF bay area).

I a male and 27 years old and I am looking to insure a 2009 Prius.

Car insurance is one of the few areas where it's completely legal to discriminate on the basis of sex, and they do. Age doesn't help, nor does the lack of a paper trail of insurance over many years. But I suspect the biggest issue you're running into is that more bad things happen more frequently to cars in big cities, which means insurance rates have to be much higher.

[SimpleCycle]

Massachusetts is a no-fault state, which tends to drive up rates in general.  Metro Boston rates will also be higher because it is an urban area.  Also, were you pricing a full coverage policy with collision and comprehensive?  I'd look at the breakdown to see how much each component is costing.

I suspect the main factor is you have no insurance history and a very short driving history.  Until you have been insured long enough to prove you are a responsible driver, you are considered a risk to the insurance company.

I would try a quote from MetroMile if your commute is short.  They are per mile insurance and it could be more economical.

[Dave1442397]

And as for riding a motorcycle in a Boston winter, forget it. Even if you have the skills to keep a bike upright in snow, ice, and slush, you can be sure that motorists will not be looking out for you in those conditions and it wouldn't be safe.

[neo von retorch]

Also, since it's so high, it'll definitely pay off to get LOTS of quotes.

- Allstate
- State Farm
- Farmers

Also, what is the 2009 Prius worth? Can you self-insure against collision damage? How much of your quote is liability, comprehensive and collision?

Additionally, play with coverage amounts, see if adding renter's insurance gives you enough of a bundle discount to actually cost you less, and if all else fails, seek out an insurance agent that will seek quotes from multiple insurance agencies.

[astralweeks]

We live in Boston.  2004 Honda Civic, 150k miles.  We pay $52 monthly with Geico.  Can’t remember what our policy is, but it’s pretty minimal, but more than just liability. 

What I can think of that would help us get this low rate:

Commute is 3 miles, and we drive the car like 3x/ week max, less in the summer.
Teacher discount?.  .
Husband has owned the car for 14 years
No accidents in last several years
We’re married, late 30s/early 40s

We originally had State Farm ($120), then MetLife (90), then I got in a MMM frenzy and switched to Geico.