To wait or not to wait

xSkyDrAx

Diamond Member
Sep 14, 2003
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This seems like a no brainer and probably is but I just want to ask to confirm. I'm currently 24 and will be 25 in July of 2012. I am saving to buy a new car and was planning to buy around April but I thought about the insurance and how there's generally a drop in rates at 25 so it would make more sense to get quoted and buy in July right?

If I buy in April it means that I would get quoted before the price drop and be paying more for the next 6mon/1yr right? :hmm:
 

xSkyDrAx

Diamond Member
Sep 14, 2003
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Nope not married but I know that's the next and probably biggest price drop. But at this point in life getting married to save on insurance is a no brainer :awe:
 

Zivic

Diamond Member
Nov 25, 2002
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This seems like a no brainer and probably is but I just want to ask to confirm. I'm currently 24 and will be 25 in July of 2012. I am saving to buy a new car and was planning to buy around April but I thought about the insurance and how there's generally a drop in rates at 25 so it would make more sense to get quoted and buy in July right?

If I buy in April it means that I would get quoted before the price drop and be paying more for the next 6mon/1yr right? :hmm:



you should be paying monthly rates even though you are quoted in 6 month intervals. if you pay upfront, they should credit you back if your rates change during that period.

I got married and turned 25 in the same year. my rates went from 279/month to 69/month on the same vehicle... so the savings can be substantial.
 

xSkyDrAx

Diamond Member
Sep 14, 2003
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you should be paying monthly rates even though you are quoted in 6 month intervals. if you pay upfront, they should credit you back if your rates change during that period.

I got married and turned 25 in the same year. my rates went from 279/month to 69/month on the same vehicle... so the savings can be substantial.

Is crediting back the difference industry standard or only with certain auto insurance agencies?
 

xSkyDrAx

Diamond Member
Sep 14, 2003
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One more question:

Say I buy in April but the car won't be here till past my birthday though that's probably a stretch even with 4-8 weeks delivery from manufact. Do I have to buy insurance on purchase date or delivery date?
 

Zargon

Lifer
Nov 3, 2009
12,218
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One more question:

Say I buy in April but the car won't be here till past my birthday though that's probably a stretch even with 4-8 weeks delivery from manufact. Do I have to buy insurance on purchase date or delivery date?

you dont need anything till it shows up AFAIK
 

Zap

Elite Member
Oct 13, 1999
22,377
7
81
Is crediting back the difference industry standard or only with certain auto insurance agencies?

Seems industry standard to me.

Say I buy in April but the car won't be here till past my birthday though that's probably a stretch even with 4-8 weeks delivery from manufact. Do I have to buy insurance on purchase date or delivery date?

You need insurance to start from the day that you take possession of it. You can probably buy it ahead of time, and have it start on the delivery date.
 

fbrdphreak

Lifer
Apr 17, 2004
17,555
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I would not wait. The savings isn't that huge. Your insurance rating is more determined by driving history and credit than anything else these days.
 

Ferzerp

Diamond Member
Oct 12, 1999
6,438
107
106
One more question:

Say I buy in April but the car won't be here till past my birthday though that's probably a stretch even with 4-8 weeks delivery from manufact. Do I have to buy insurance on purchase date or delivery date?

Do you have no insurance now? Do you live with your parents? Even at your age, if you live with them, you are on their plan and will have a 5-10 day grace period. It is the same with if you have your own insurance. Just call them and ask.

If you have no insurance, yes, you need to get some prior to driving the vehicle. If you are financing it, the bank will require proof of full coverage within 10 days or so of purchase (regardless of whether or not you are driving it).
 

xSkyDrAx

Diamond Member
Sep 14, 2003
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If you are financing it, the bank will require proof of full coverage within 10 days or so of purchase (regardless of whether or not you are driving it).

This makes sense but that means (if not available on lot) I'll probably be out on a few weeks of insurance for delivery time no?
 

xSkyDrAx

Diamond Member
Sep 14, 2003
7,706
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Seems industry standard to me.



You need insurance to start from the day that you take possession of it. You can probably buy it ahead of time, and have it start on the delivery date.

Hm so that means I pay for the insurance on the date quoted but it won't start till I physically get the car? (i.e no time/money lost)
 

Ferzerp

Diamond Member
Oct 12, 1999
6,438
107
106
I would check with the bank. Are you actually paying for it prior to delivery?
 

Viper GTS

Lifer
Oct 13, 1999
38,107
433
136
You don't need to worry about getting the dates aligned perfectly.

You'll have typically 30 days to tell your insurance company about a new vehicle. Get your quotes ahead of time, but don't bother starting it until it's actually in your posession.

And as others have mentioned there isn't a magical rate cliff you're going to step off when you turn 25. Buy what you want, pay the rates, & know that your costs will be trending down unless you do something stupid.

Viper GTS
 

xSkyDrAx

Diamond Member
Sep 14, 2003
7,706
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No I won't be paying for it prior to delivery but I'm just mostly curious as how stuff like that works out.

I know insurance rates tend to drop the longer you've held insurance but is the length of how long you've held it only specific to one agency or do all agencies take into account the length that you've had insurance through all companies?

i.e Been with one insurance for 5 years without gaps in coverage. If I move to another agency do they take that 5 years into account especially with a new car or will they ignore that and you're basically working from 0 again?

Thanks to all that have replied this information has been very helpful as it will be my first new car purchase and I want to get everything straight way before hand.
 

Zivic

Diamond Member
Nov 25, 2002
3,505
38
91
You don't need to worry about getting the dates aligned perfectly.

You'll have typically 30 days to tell your insurance company about a new vehicle. Get your quotes ahead of time, but don't bother starting it until it's actually in your posession.

And as others have mentioned there isn't a magical rate cliff you're going to step off when you turn 25. Buy what you want, pay the rates, & know that your costs will be trending down unless you do something stupid.

Viper GTS


I had a huge rate drop when I turned 25. mine literally dropped over 100/month and made the final drop after getting married. saving over 200/month in total. this is with same 100% clean record, no accidents, living in the same non-crime ridden suburb, and with multi-car, multi-line discounts.
 

Ferzerp

Diamond Member
Oct 12, 1999
6,438
107
106
Where on earth and for what car were you being charged 3600 a year for insurance?
 

Zivic

Diamond Member
Nov 25, 2002
3,505
38
91
Where on earth and for what car were you being charged 3600 a year for insurance?

assuming this is directed at me...

it was more like 3300 a yr - keep in mind that was with a clean driving discount, multi-line, mult-car policy discounts as well.
It was in 2002-2003, a 2001 stratus coupe and in Woodbury, MN
 

Zivic

Diamond Member
Nov 25, 2002
3,505
38
91
I'm baffled. That's just outrageous.

that's all what happens with a two door car labeled as a sports car and driver under 25. the following year I bought a 350Z and still had the stratus and the two car combined were under 150/month
 

MrWizzard

Platinum Member
Mar 24, 2002
2,493
0
71
I'm baffled. That's just outrageous.

Don't be, if you look at the actuarial data the truth is Insurance companies cannot charge enough for young drivers. Their accident rates are disgusting. Any time you see a young person in an accident yea it’s not your rate that goes up but in a way all the young people crashing does increase rates slowly over time. :(

OP some companies have the split at 24 some 25 it's actually not age related it's how long you have been licensed. So usally it's right about when you hit 8 years. FYI each state has different rules also so take what people say here with a grain of salt.

Good luck.
 

fbrdphreak

Lifer
Apr 17, 2004
17,555
1
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I know insurance rates tend to drop the longer you've held insurance but is the length of how long you've held it only specific to one agency or do all agencies take into account the length that you've had insurance through all companies?
All agencies base their rates on several key factors, roughly in descending order of importance: credit score, driving history, vehicle, age/gender, and marital status. What discounts they apply from there varies greatly from agency to agency.

There is no consideration for how long you've had insurance in general. Would a grocery store give you a discount just because you've bought groceries for the past 10 years?

You're acting like this will be your first auto insurance policy. If you already have an auto policy with someone, obviously get rates from them. Ask them if they take into account loyalty with the company for rates down the road. I know State Farm does, not sure about others.

Also ask your current and other agencies about discounts that might apply to you: no accidents, good academic discounts, student discounts, military/public safety, etc. Anything unique about yourself that might apply, ask. You never know what discounts these companies have and the agent won't always go through the effort of finding out for you.

Also consider combining insurance for multi-line discounts. Renter's/homeowner insurance, life insurance, etc.

I was added to my Dad's State Farm policy when I started driving. They later split me out under my own policy. This had the effect of showing me having been a State Farm customer since my Dad first started his own policy. Thus I have a very long history with them and per several agents, a highly discounted rate compared to most people. YMMV