YACT: Do i really need all this insurance coverage?

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RichieZ

RichieZ

Diamond Member
Jun 1, 2000
6,549
37
91
I'm 20, turning 21 in November, gonna be a junior next yr at a top ten university in the US. I'm thinking about buying a friends 2001 Lexus IS300 E-Shift (yes I kno, i'm a wuss for not getting a stick but I can't afford a new IS300 and 2001 was auto only and its in perfect condition), ~22K miles, he's willing to let it go for $22.5K. Anyways becaused I worked and invested (worked last 2 summers, working this summer at IBM, mommy and daddy are not paying a single cent) I can afford to buy the car from him outright.

But jeez insurance is expensive $3K/yr with max deductible on everything (and I think I this is after the discount I get for being a member of a professional engineering frat that GEICO has a deal with), I have no tickets and no accidents:
click

So I'm wondering do I really need all of the coverage? The prices are broken down by coverage and keep in mind that is for 6 months. What can I get away with declining coverage? And when do guys insurance rates normally go down? I think I read it should dip when you hit 21 and then again when u get married?

EDIT: Sorry it was messed up, HORRIBLE WYSIG EDITOR

EDIT2: WTF happned to that pic, i'm fixing it right now

EDIT3: Pic fixed, sorry about it

EDIT4: DAMN ATOT, the cold hard reality has crushed my dream!
 
CPA

CPA

Elite Member
Nov 19, 2001
30,322
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0
Just go with liability, that should knock it down a good amount.
 
V

Viper GTS

Lifer
Oct 13, 1999
38,107
433
136
You'd be crazy not to have it.

BTW, $3K a year is nothing for insurance at your age.

Be thankful it's that cheap, & pay it with a smile.

If I were you I would save your money & buy a nice ride once your rates drop. I dunno about you, but I have SERIOUS issues paying $3-5K a year for insurance. I flat out refuse to do it.

Viper GTS
 
N

notfred

Lifer
Feb 12, 2001
38,241
4
0
Um, are we suppsoed to be able to read that picture? It looks like you printed it out, put it through the washing machine, and then scanned it again.

Anyway, if you want cheap insurance, get the legal minimum - liability only.
 
CPA

CPA

Elite Member
Nov 19, 2001
30,322
4
0
Originally posted by: Viper GTS
Originally posted by: CPA
Just go with liability, that should not it down a good amount.
Click to expand...

Liability only on a $23K vehicle?

:Q

Viper GTS
Click to expand...


I didn't say I was for it, only that if he wants to get rid of some of the coverage, this is his best option.

This summer I will be paying off my conversion van, and dropping my insurance to liability only, but only because the thing is a tank.
 
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ggavinmoss

Diamond Member
Apr 20, 2001
4,798
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I also have a 2001 Lexus IS300 and only pay ~$750/6 months. Do you live in a really bad area?

-geoff
 
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notfred

Lifer
Feb 12, 2001
38,241
4
0
You can remove collision and comprehensive coverage and still be legal. However, if you cause an accident, you'll be paying for the repairs to your own car out of your own pocket. (the insurance company will only cover the other car)

You'll save about $2,000/year though.
 
RichieZ

RichieZ

Diamond Member
Jun 1, 2000
6,549
37
91
Originally posted by: ggavinmoss
I also have a 2001 Lexus IS300 and only pay ~$750/6 months. Do you live in a really bad area?

-geoff
Click to expand...

The address I put in is my school address, a pretty affluent subburb of Chicago, so I'm sure its more than my home address in CA. BTW how old are you?

Originally posted by: Viper GTS
You'd be crazy not to have it.

BTW, $3K a year is nothing for insurance at your age.

Be thankful it's that cheap, & pay it with a smile.

If I were you I would save your money & buy a nice ride once your rates drop. I dunno about you, but I have SERIOUS issues paying $3-5K a year for insurance. I flat out refuse to do it.

Viper GTS
Click to expand...

So when do insurance rates for guys drop? I think I read 21 somewhere, because at that age men become stasticially better drivers than women (but then I might just be pulling this out of my ass, its what i remember.)
 
E

Eli

Super Moderator | Elite Member
Oct 9, 1999
50,419
8
81
Originally posted by: Viper GTS
You'd be crazy not to have it.

BTW, $3K a year is nothing for insurance at your age.

Be thankful it's that cheap, & pay it with a smile.

If I were you I would save your money & buy a nice ride once your rates drop. I dunno about you, but I have SERIOUS issues paying $3-5K a year for insurance. I flat out refuse to do it.

Viper GTS
Click to expand...

So.. do you just drive around without insurance, then? ;)
 
V

Viper GTS

Lifer
Oct 13, 1999
38,107
433
136
Originally posted by: RichieZ
Originally posted by: ggavinmoss
I also have a 2001 Lexus IS300 and only pay ~$750/6 months. Do you live in a really bad area?

-geoff
Click to expand...

The address I put in his my school address, a pretty affluent subburb of Chicago, so I'm sure its more than my home address in CA.

Originally posted by: Viper GTS
You'd be crazy not to have it.

BTW, $3K a year is nothing for insurance at your age.

Be thankful it's that cheap, & pay it with a smile.

If I were you I would save your money & buy a nice ride once your rates drop. I dunno about you, but I have SERIOUS issues paying $3-5K a year for insurance. I flat out refuse to do it.

Viper GTS
Click to expand...

So when do insurance rates for guys drop? I think I read 21 somewhere, because at that age men become stasticially better drivers than women (but then I might just be pulling this out of my ass, its what i remember.)
Click to expand...

Your rate will likely drop a little when you turn 21, but the big drop is 25 or marriage, whichever comes first.

I'm in the same boat as you, I'm only a few months older.

Almost $5K a year for the Z28 I want.

:D

Viper GTS
 
G

Grey

Platinum Member
Oct 14, 1999
2,737
2
81
25 male if married rates will go down 30%. Not married, have to wait till 29.
 
V

Viper GTS

Lifer
Oct 13, 1999
38,107
433
136
Originally posted by: Eli
Originally posted by: Viper GTS
You'd be crazy not to have it.

BTW, $3K a year is nothing for insurance at your age.

Be thankful it's that cheap, & pay it with a smile.

If I were you I would save your money & buy a nice ride once your rates drop. I dunno about you, but I have SERIOUS issues paying $3-5K a year for insurance. I flat out refuse to do it.

Viper GTS
Click to expand...

So.. do you just drive around without insurance, then? ;)
Click to expand...

No, when I can drive (which isn't right now) I drive cars that I don't mind having liability only on. It's not the end of the world if I total a $2500 Accord.

Viper GTS
 
RichieZ

RichieZ

Diamond Member
Jun 1, 2000
6,549
37
91
So the consenus is that if I do get the car I dont' have enough coverage, and that all I can do is take it up the ass unless I get married? I can't really afford to pay the insurance if its much more than $3k/yr. I guess it likely now that I won't get a car or I'll get a beater.

DAMN ATOT, the cold hard reality has crushed my dream!
 
E

Eli

Super Moderator | Elite Member
Oct 9, 1999
50,419
8
81
Originally posted by: Viper GTS
Originally posted by: Eli
Originally posted by: Viper GTS
You'd be crazy not to have it.

BTW, $3K a year is nothing for insurance at your age.

Be thankful it's that cheap, & pay it with a smile.

If I were you I would save your money & buy a nice ride once your rates drop. I dunno about you, but I have SERIOUS issues paying $3-5K a year for insurance. I flat out refuse to do it.

Viper GTS
Click to expand...

So.. do you just drive around without insurance, then? ;)
Click to expand...

No, when I can drive (which isn't right now) I drive cars that I don't mind having liability only on. It's not the end of the world if I total a $2500 Accord.

Viper GTS
Click to expand...

Ah. I doubt I'll even be able to afford that. :p

Personally, I think it's silly that insurance is mandatory. I can imagine that the insurance companies lobbied hard to get those laws passed. ;)

I know more than a few people who have gone years and years without insurance, lol..
 
V

Viper GTS

Lifer
Oct 13, 1999
38,107
433
136
Originally posted by: RichieZ
So the consenus is that if I do get the car I dont' have enough coverage, and that all I can do is take it up the ass unless I get married? I can't really afford to pay the insurance if its much more than $3k/yr. I guess it likely now that I won't get a car or I'll get a beater.
Click to expand...

Hold on to the cash for now, & add the $2K a year you'll save into your car fund. When you turn 25 you'll have a nice chunk of change to toss at a new car, if you still want to spend it that way.

You might decide a house, continued investment, etc. is better.

But that's totally up to you.

Viper GTS
 
BigSmooth

BigSmooth

Lifer
Aug 18, 2000
10,484
12
81
I have a perfect record but I won't be 25 until September, so basically I am getting screwed right now. :|

Anyways, back to the original subject, yes, you need the coverage and I see you already have the deductibles at $1K.
It's just going to be expensive to insure a Lexus for a 20 year old, unfortunately. Shop around everywhere you can to find the lowest rates, though.

Edit: I agree with Viper on saving it though, you will be thanking God for that cash when it's time to buy a house.
 
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