I have spent a lot of time with my kids, trying to teach them right from wrong. Trying to develope them into productive citizens. I don't usually talk about my 2 older children, simply because they are busy and dont have much time for dear old dad. But my rewards is watching them develope into adults. Well this weekend my daughter bought her first car, with no help from my wife or me.
She is a fulltime nursing student with 2 years left till she graduates. She holds down 2 part time jobs as well, so she decided that she wanted a new car. Now she was very conservative. ( which made me proud) she did her homework and found out the Ford offers a better intrest rate to full time students. So she decided on a 2018 Ford Focus, which I thought was a very conservative choice. Now she did this on her own, no co-signer and nobody else on the car loan. Ford Motor Credit gave her a 1.9% intrest rate, which is pretty awesome considering she is a first time buyer. She chose to finance for 48 months so she would get it paid off before her warranty expires. (Another choice that made me proud).
But then all of sudden this accomplishment seemed to be a bad mistack for her. She bought the car on Saturday so today was the first day that she could call about getting insurance for her new ride. Now she chose to go with the same company that I have used since I bought my first car.
Now here is where it gets really screwed up, for full coverage insurance on her new car, was going to cost $527.00 a month. Now keep in mind her car payment is only $362.00 a month. Now as you can see this was a kick to the face. She has never been in an accident or had any speeding tickets. So It was time for daddy to step in, as bad as I didn't want to, there was no way I was going to allow her to pay more for insurance than for the car.
So check this out, I called my insurance company and went through everything with them. She was correct it was going to cost $527 a month for car insurance. Now she has always been on my policy since I have always bought the cars for her. So I was getting a little pissed off at this moment, that when my agent stepped in and said "why dont you just add the car to your policy?" I said "can I do that?" He said, "yes you can, she is already listed as a driver on your policy. At this time I started seeing the light and could see even more know that insurance policy are all scams. So I played along and said well give me a quote for adding it to my policy. So he did, now here you have to pay attention, so to add her new car to my policy with her being the only driver on the car and with the same coverage and deductables, the price was now down to $204 a month. A lot better right? Well I would say so too. But why such a difference, With all the same info and coverage? I mean this was basically the same policy just not in her name but she is listed as the Primary driver? I will tell you why! Its a scam all of it. How in the world will our upcoming generation ever be independent, if there are major companies that are keeping them down, for no apparent reason other then because they can.
This is troublesome, I mean that is a $3,600 difference, come on, really? Think of all the people who do get taken advantage of, who dont have someone beside them checking things off for them.
So Today was a proud day for me, my little girl is making adult decisions, that are right and solid. This is the reward that ALL parents grave.
It's really tough for kids to get ahead of the game these days. Absolute rip-off with insurance. It's the same in Australia with insurance. I'm looking to help my boy get his first car in a few months, and may end up having to put everything in my name to keep the costs down... but then he'll never get the "risk rating" bonuses because nothing is ever in his name... Insurance is quite a bit cheaper here though. Even at $200, that's pretty steep.
Feel lucky. Michigan has the top 3 most expensive car insurance in the US. I pay almost $700 for 3 cars. Only 1 has full coverage. Insurance is a big scam!
If you are qualified to get USAA I would definitely take a look. I have great full coverage, really low collision deductible and $0 comprehensive deductible which I have used before no problem. I pay less than $50 a month on a 20 year old car.
Congrats to your daughter and you on this great achievement!! In terms of insurance I go through a brokerage company that finds me the best rate. Every year they check different companies in their pool. This year they saved me almost 300 bucks. One of our biggest mistakes is not shopping around for insurance because it is highly competitive. What your insurance company counts on is you not leaving. Thanks for sharing!!
The illusion of competition.
Insurance is a heavily regulated industry, which means regulatory capture.
There are plenty of companies, but they're under-written by larger companies, which are all under-written by the same few huge players.
Think about it this way.
Could you take out a big loan and start your own insurance company, or would they shut you down in a week? That's why they can drop these absurd quotes.
Anyone trying to offer a better deal gets their door kicked down.
I am sorry to inform you that in Brazil the insurance companies are not different from yours. They rip you off the same way your daughter was. I repeat you: How will our youth ever make it?
not sure if it is by law that you have to have insurance in US, but I would just cut the insurance and buy steem every month with the instalment. by the end of the year voila a new car or two bought with steem ;)
It's really tough for kids to get ahead of the game these days. Absolute rip-off with insurance. It's the same in Australia with insurance. I'm looking to help my boy get his first car in a few months, and may end up having to put everything in my name to keep the costs down... but then he'll never get the "risk rating" bonuses because nothing is ever in his name... Insurance is quite a bit cheaper here though. Even at $200, that's pretty steep.
I am moving to Australia. Specially if $200 is steep. Thanks for stopping by @bmj
Geez, I had no idea it was that bad for car insurance. Highway robbery!
Its terrible buddy, complete robbery!!
Feel lucky. Michigan has the top 3 most expensive car insurance in the US. I pay almost $700 for 3 cars. Only 1 has full coverage. Insurance is a big scam!
It's crazy, it is just about as bad has health insurance.
If you are qualified to get USAA I would definitely take a look. I have great full coverage, really low collision deductible and $0 comprehensive deductible which I have used before no problem. I pay less than $50 a month on a 20 year old car.
🙄 I need me some of that
Congrats to your daughter and you on this great achievement!! In terms of insurance I go through a brokerage company that finds me the best rate. Every year they check different companies in their pool. This year they saved me almost 300 bucks. One of our biggest mistakes is not shopping around for insurance because it is highly competitive. What your insurance company counts on is you not leaving. Thanks for sharing!!
Thanks for the info @dwingsworld, very true comment, since I have been with mine for 28 years
Be proud buddy, you have a great family. They get you coming and going between fuel and insurance it adds up.
Thanks @firecajun9262
Thank you for your continued support of SteemSilverGold
The illusion of competition.
Insurance is a heavily regulated industry, which means regulatory capture.
There are plenty of companies, but they're under-written by larger companies, which are all under-written by the same few huge players.
Think about it this way.
Could you take out a big loan and start your own insurance company, or would they shut you down in a week?
That's why they can drop these absurd quotes.
Anyone trying to offer a better deal gets their door kicked down.
I am sorry to inform you that in Brazil the insurance companies are not different from yours. They rip you off the same way your daughter was. I repeat you: How will our youth ever make it?
not sure if it is by law that you have to have insurance in US, but I would just cut the insurance and buy steem every month with the instalment. by the end of the year voila a new car or two bought with steem ;)