I just bought a car, a 2023 Bolt EUV, for under $20,000. I’m 33 years old, and all the major insurance companies are quoting me over $400 a month. This is way higher than my car payment.
For context, I had one at-fault accident when I was 19 and a speeding ticket in 2020. I’ve had my own insurance for seven years. For the last five years, I drove a cheap car worth less than $2,000 and paid $200 a month for minimal coverage without ever filing a claim. My credit is average.
Is this normal? Why is the insurance this high? What can I do to get something more affordable?
Marlon said:
What zip code are you in? It can make a big difference. For example, areas near Detroit often have higher rates compared to suburbs or rural regions.
I live just north of Detroit in southeast Oakland County.
@Maverick
You might want to look up auto insurance rates for your zip code. Being close to Detroit can raise rates significantly. That could explain the cost.
Marlon said: @Maverick
You might want to look up auto insurance rates for your zip code. Being close to Detroit can raise rates significantly. That could explain the cost.
That might be part of it, but I know others in the same area with much cheaper insurance, even with more expensive cars.
A lot of your premium might be due to the medical portion of your policy. If you have health insurance, check if you can opt out of the medical coverage. This lets your health insurance pay for accidents. However, be careful. PIP coverage is extensive and doesn’t have a deductible, so it’s risky to drop it.
Rates seem to be increasing everywhere. Mine just went up from $180 to $200. When I asked on this forum, people mentioned things like interest rates and general cost increases. I also moved from Genesee County to Oakland County, which made a difference. I recommend shopping around. Sometimes, a different company can offer better rates.
@Cam
Insurance costs have been rising due to higher loss costs over the last few years. Some companies are now leveling off or reducing rates, but changes take time to reflect. Shopping around is always a good idea if you see a big jump in your rates.
I’m an insurance agent in Michigan. The cost might be due to your location and the fact that it’s a new car. Reducing coverage could help lower the premium, but that comes with its own risks.
When you say you checked major providers, did you contact companies like Progressive, Allstate, or State Farm directly? You might have better luck with an independent agent who can shop across multiple companies for you. Also, did you cancel your old insurance when you got this car? A lapse in coverage can really increase your rates.
@SarahBrown
No, I just added the new car and removed the old one a few days later. I did speak with a couple of agents, but they only represented one company. I’ll look for an independent agent. Thanks!
If you figure out why your rate is so high, please share. I’m in a similar situation. I have a 2017 Toyota Yaris iA and pay $315 a month, which is way more than my $190 car payment. I have no accidents and just one speeding ticket. Michigan insurance is crazy expensive compared to other states I’ve lived in.
Have you tried using a broker to shop around? I was with Progressive but got tired of rate increases. A broker found me a better deal with good coverage.
Mikel said:
Have you tried using a broker to shop around? I was with Progressive but got tired of rate increases. A broker found me a better deal with good coverage.