I recently received an email confirmation for my car insurance auto payment for my 2014 GMC Sierra. I purchased this vehicle new in October 2013 and have always had it insured through the same company. My monthly rate has been the same for a few years now ($114/month full coverage). It was a little lower for the first couple years (new vehicle discount). Not sure why I'm thinking about this now but in theory shouldn't a 5 year old vehicle be less expensive to insure then a new model? If my truck was totaled today, the replacement cost would be considerably less then it was when new. Shouldn't premiums go down as the vehicle ages? Since starting a policy on this vehicle I have never made a claim and have always had a clean driving record. Am I crazy to think my premiums should be less expensive then they were 5 years ago?
Should car insurance premiums lower with vehicle age?
- Thread starter gonefishing
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It should but unless you ask your agent to adjust it, it has never adjusted itself.
Otherwise, just go shopping for another insurance.
In my experience, loyalty with insurance company is not going to give you any benefit.
They think you are not going away and can keep increasing the premium.
Of course, by shopping you may also find that your insurance has the best.
Also, make sure the coverage is comparable not replacing it with less coverage.
Otherwise, just go shopping for another insurance.
In my experience, loyalty with insurance company is not going to give you any benefit.
They think you are not going away and can keep increasing the premium.
Of course, by shopping you may also find that your insurance has the best.
Also, make sure the coverage is comparable not replacing it with less coverage.
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Nick1994
$100 site donor 2024
Car insurance sometimes doesn't make sense. When my grandpa bought a 2014 Jeep Grand Cherokee Limited last year (was $47k when new) the insurance was cheaper than his 2002 Chevy Trailblazer (same coverages). Same with my grandma when she bought her 14' Grand Caravan, it was cheaper to insure than the 12' Jeep Patriot.
Insurance prices change with the market, sometimes they go up for no reason but sometimes due to flooding, thefts, fires, tornados, etc. from all over the country.
Insurance prices change with the market, sometimes they go up for no reason but sometimes due to flooding, thefts, fires, tornados, etc. from all over the country.
Originally Posted by spackard
They don't go down much - bodily injury payout from an accident doesn't change and those are the lion's share of any claim.
This ^^^^^^^^^^^
Along with the fact an older car causes just as much damage when it piles into a newer one.
They don't go down much - bodily injury payout from an accident doesn't change and those are the lion's share of any claim.
This ^^^^^^^^^^^
Along with the fact an older car causes just as much damage when it piles into a newer one.
And yet, once a car is a few years old they can insist on using used parts or Chinese knockoffs as replacement parts for cars in an accident. Parts that in fit and finish are not compatible with OEM.
Originally Posted by ArrestMeRedZ
And yet, once a car is a few years old they can insist on using used parts or Chinese knockoffs as replacement parts for cars in an accident. Parts that in fit and finish are not compatible with OEM.
This is true. They call the shots, for the most part. Shop around to keep them honest. If you have a good driving record, familiarity often breeds contempt with insurance companies, and lower rates may be available from the competition.
And yet, once a car is a few years old they can insist on using used parts or Chinese knockoffs as replacement parts for cars in an accident. Parts that in fit and finish are not compatible with OEM.
This is true. They call the shots, for the most part. Shop around to keep them honest. If you have a good driving record, familiarity often breeds contempt with insurance companies, and lower rates may be available from the competition.
Originally Posted by gonefishing
I recently received an email confirmation for my car insurance auto payment for my 2014 GMC Sierra. I purchased this vehicle new in October 2013 and have always had it insured through the same company.
^^^ THIS IS YOUR PROBLEM ^^^
You have been with the same insurance company for 5 years.
EVERY YEAR that your insurance renews you should go online and compare rates.
ITs so easy to do, spend an hour and compare rates. When you become loyal to an insurance company they know you will not change insurance.
Geico, Progressive, esurance, travelers ect and whoever else that you want.
I cant even count how many times I have switched over the last decade even in the middle of my policy I will switch.
Cars, boats, bikes and home.
SO log out of BITOG and get to work, your savings pays you 100s of dollars an hour to do a little research. FInd a better price today and sign up, then cancel your existing insurance, they will send you a refund check.
I recently received an email confirmation for my car insurance auto payment for my 2014 GMC Sierra. I purchased this vehicle new in October 2013 and have always had it insured through the same company.
^^^ THIS IS YOUR PROBLEM ^^^
You have been with the same insurance company for 5 years.
EVERY YEAR that your insurance renews you should go online and compare rates.
ITs so easy to do, spend an hour and compare rates. When you become loyal to an insurance company they know you will not change insurance.
Geico, Progressive, esurance, travelers ect and whoever else that you want.
I cant even count how many times I have switched over the last decade even in the middle of my policy I will switch.
Cars, boats, bikes and home.
SO log out of BITOG and get to work, your savings pays you 100s of dollars an hour to do a little research. FInd a better price today and sign up, then cancel your existing insurance, they will send you a refund check.
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Parts and labor pricing for collision are rising again, so that accounts for a bit of the change. Insurance companies tend to increase rather than decrease pricing because they know most people won't bother to switch. For instance, at Progressive, we were quoted $200/yr less on a new policy compared to an existing one with identical coverage. Best idea is to shop around every year. Some companies give preferential rates to different groups to balance their portfolios too. We switch firms every few years.
Car and home owners insurance has become like cell phone or Internet providers. They are always courting new customers with LOW rates without regards to their existing customers. I reciprocated several years and switched from Safeco to Progressive and saved $1000/yr. Next year Progressive bumped home owners $500 so I switched to Esurance and got home owners back down to under $600/yr and 4 cars under $90/mo. They didn't bump up rates much so I've stayed with them into the 3rd year. I'll gladly spend an hour to save $500. It gripes me when a company charges new customers less than "loyal" customers. US Cellular is next on my hit list.
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JTK
$100 Site Donor 2025
Originally Posted by Nick1994
Car insurance sometimes doesn't make sense. When my grandpa bought a 2014 Jeep Grand Cherokee Limited last year (was $47k when new) the insurance was cheaper than his 2002 Chevy Trailblazer (same coverages). Same with my grandma when she bought her 14' Grand Caravan, it was cheaper to insure than the 12' Jeep Patriot.
Insurance prices change with the market, sometimes they go up for no reason but sometimes due to flooding, thefts, fires, tornados, etc. from all over the country.
It's my understanding that much of the premium depends on the statistics for the specific vehicle. Having owned Jeeps in the past (nothing too fancy), the insurance was cheaper on these Jeeps than a lot of other vehicles I've owned. My rates for Subaru and Hyundai vehicles were cheaper too. Went up quite a bit when I bought my 2017 Ram 1500.
Car insurance sometimes doesn't make sense. When my grandpa bought a 2014 Jeep Grand Cherokee Limited last year (was $47k when new) the insurance was cheaper than his 2002 Chevy Trailblazer (same coverages). Same with my grandma when she bought her 14' Grand Caravan, it was cheaper to insure than the 12' Jeep Patriot.
Insurance prices change with the market, sometimes they go up for no reason but sometimes due to flooding, thefts, fires, tornados, etc. from all over the country.
It's my understanding that much of the premium depends on the statistics for the specific vehicle. Having owned Jeeps in the past (nothing too fancy), the insurance was cheaper on these Jeeps than a lot of other vehicles I've owned. My rates for Subaru and Hyundai vehicles were cheaper too. Went up quite a bit when I bought my 2017 Ram 1500.
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Originally Posted by ArrestMeRedZ
And yet, once a car is a few years old they can insist on using used parts or Chinese knockoffs as replacement parts for cars in an accident. Parts that in fit and finish are not compatible with OEM.
Not in this state................... one of the few redeeming values here. Many residents don't know they can insist on OEM parts.
And the body shop of THEIR choice................ not what the insurance company recommends.
And yet, once a car is a few years old they can insist on using used parts or Chinese knockoffs as replacement parts for cars in an accident. Parts that in fit and finish are not compatible with OEM.
Not in this state................... one of the few redeeming values here. Many residents don't know they can insist on OEM parts.
And the body shop of THEIR choice................ not what the insurance company recommends.
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Unless its KBB value drop below the repair bill, probably not by much. Most of the accidents that don't total the car are repaired, and if your vehicles are way more valuable than the repair bill, it just cost about the same.
Originally Posted by gonefishing
I recently received an email confirmation for my car insurance auto payment for my 2014 GMC Sierra. I purchased this vehicle new in October 2013 and have always had it insured through the same company. My monthly rate has been the same for a few years now ($114/month full coverage). It was a little lower for the first couple years (new vehicle discount). Not sure why I'm thinking about this now but in theory shouldn't a 5 year old vehicle be less expensive to insure then a new model? If my truck was totaled today, the replacement cost would be considerably less then it was when new. Shouldn't premiums go down as the vehicle ages? Since starting a policy on this vehicle I have never made a claim and have always had a clean driving record. Am I crazy to think my premiums should be less expensive then they were 5 years ago?
Basically it's the cost of each piece of insurance. Not too many people total their cars so even though the value is less, that's not the total component of insurance. As someone else said, it's basically bodily injury and collision costs. Fender benders cost the same if it can be repair no matter if the car is 5 years old or 10 years old. And it costs the same for bodily injury no matter how old the car is. Also some cars have more claims than others so a higher risk model will cost more than other. Insurance on my Mercedes was about the same as a Ford Taurus. Just goes back to claims. I remember being surprised once when they quoted me coverage on 25k worth of property damage, to go to $100k was just another $5. That tells you there are very few claims that are between 25k-100k such that an extra $5 a year covers that risk.
I recently received an email confirmation for my car insurance auto payment for my 2014 GMC Sierra. I purchased this vehicle new in October 2013 and have always had it insured through the same company. My monthly rate has been the same for a few years now ($114/month full coverage). It was a little lower for the first couple years (new vehicle discount). Not sure why I'm thinking about this now but in theory shouldn't a 5 year old vehicle be less expensive to insure then a new model? If my truck was totaled today, the replacement cost would be considerably less then it was when new. Shouldn't premiums go down as the vehicle ages? Since starting a policy on this vehicle I have never made a claim and have always had a clean driving record. Am I crazy to think my premiums should be less expensive then they were 5 years ago?
Basically it's the cost of each piece of insurance. Not too many people total their cars so even though the value is less, that's not the total component of insurance. As someone else said, it's basically bodily injury and collision costs. Fender benders cost the same if it can be repair no matter if the car is 5 years old or 10 years old. And it costs the same for bodily injury no matter how old the car is. Also some cars have more claims than others so a higher risk model will cost more than other. Insurance on my Mercedes was about the same as a Ford Taurus. Just goes back to claims. I remember being surprised once when they quoted me coverage on 25k worth of property damage, to go to $100k was just another $5. That tells you there are very few claims that are between 25k-100k such that an extra $5 a year covers that risk.
If your car is or becomes a "jerk magnet" its rates will go up. "jerks" being those who statistically get into wrecks or make minor wrecks more expensive.
I had a 3rd gen f-body a couple years ago-- its rates were quite reasonable. If the car were a few years old though, then, statistically, it would have had more miles per year put on and more exposure to the company.
That all said you should shop around. Once your company starts flattering you calling you a "platinum diamond member" you're really getting ripped off.
I had a 3rd gen f-body a couple years ago-- its rates were quite reasonable. If the car were a few years old though, then, statistically, it would have had more miles per year put on and more exposure to the company.
That all said you should shop around. Once your company starts flattering you calling you a "platinum diamond member" you're really getting ripped off.
I once thought the same thing. I had a 2000 Camry and a 2008 RAV4 and when new, I checked my rates. The 2008 RAV4 was lower. I asked why and they said the 2008 has many more safety features and therefore, the chance of a major injury was lower. And it's medical that drives insurance rates (at least it's a big factor). That's what I was told from my insurance company.
When I got rid of my eleven year old F150 and bought my new Pilot, my insurance costs went down. Agent said it was due to all the safety features on the new vehicle. Whatever the reason, its creeping back up so will shop around again this year.
I pay $40 a month for full coverage on my 20 year old Jeep. I thought about just running Liability but for this price I leave it alone.
Good feedback everyone. I think it's time to do some insurance shopping.
Originally Posted by philipp10
I once thought the same thing. I had a 2000 Camry and a 2008 RAV4 and when new, I checked my rates. The 2008 RAV4 was lower. I asked why and they said the 2008 has many more safety features and therefore, the chance of a major injury was lower. And it's medical that drives insurance rates (at least it's a big factor). That's what I was told from my insurance company.
This is exactly what I am hearing from my agent for the last 5 years. Now, I pay wee-bit more for Sentra than Forester, exactly the same coverage. I would love to dump Sentra but I don't want monthly payments for another 5 years (and it runs really well for local errands).
I once thought the same thing. I had a 2000 Camry and a 2008 RAV4 and when new, I checked my rates. The 2008 RAV4 was lower. I asked why and they said the 2008 has many more safety features and therefore, the chance of a major injury was lower. And it's medical that drives insurance rates (at least it's a big factor). That's what I was told from my insurance company.
This is exactly what I am hearing from my agent for the last 5 years. Now, I pay wee-bit more for Sentra than Forester, exactly the same coverage. I would love to dump Sentra but I don't want monthly payments for another 5 years (and it runs really well for local errands).
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