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Car Insurance – Milestone at Age 25

Posted By Jim On 07/09/2005 @ 2:41 am In Insurance | 12 Comments

I’m reaching what is commonly considered the biggest milestone in a driver’s life, turning twenty five years ago. Aging from 24 years 11 months and thirty days to 25 years will probably save you the most amount of money with the least amount of effort in your entire life (getting married helps, but that’ll win you the award for least amount of money with the most amount of effort ) because it moves you from a most risky class to a less risky class of driver. I’ll be turning twenty five in August (and I’ll be moving) so I wanted to get a benchmark of auto insurance quotes prior to turning twenty five and then comparing them later on. I currently am insured by Geico but I’ll be using Progressive’s quote system for my research.

Current Insurer: GEICO
Vehicle: 2003 Toyota Celica
Premium per 6 Months: $436.60
Coverage:

BODILY INJURY LIABILITY $100,000/$300,000
PROPERTY DAMAGE LIABILITY $100,000
PERSONAL INJURY PROTECTION $2,500
UNINSURED MOTORIST BODILY INJURY $20,000/$40,000
UNINSURED MOTORIST PROPERTY DAMAGE $100,000
COMPREHENSIVE Not currently carried
COLLISION Not currently carried
EMERGENCY ROAD SERVICE Not currently carried
RENTAL REIMBURSEMENT Not currently carried

You may notice I carry zero comprehensive and collision insurance (yes, risky) but if I carried $1000 deductibles on both coverage’s, my 6 month premium would be $959.50 (more than double!). I have every possible insurance discount available from Geico (5 Year Good Driver, affiliate organization discount, safety restraint discount, etc). I also have homeowner’s insurance with Geico (Traveler’s really) but there is no discount on my auto insurance policy because of it, only my homeowner’s discount.

What was Progressive’s result for the exact same coverage? $448. If you were to add the $1000 deductible comprehensive and collision insurance? $737.00. So it would be cheaper to go with Progressive if I wanted to tack on the extra coverage’s but I don’t really feel they are worth it. I’m currently being “paid” $1,000 a year to insure myself.

Here is where the power of Progressive comes in, they will show you the rates of their competitors. Unfortunately, the only other rate they told me about was from State Farm Mutual Automobile Company and that was $1,162. Unfortunately, I wish they gave me more information than that… no mention of AllState or Nationwide quotes.

Right now I’m sticking with Geico, check back in a month to see how the rates compare with current rates.

Update 7/11/05: When I was logging into the American Express website I saw that they were offering auto insurance so I submitted some information to them to see what they would quote me. For equal coverage to my current coverage (no collision/comprehensive) would be $445 and for “full” coverage, it would cost $844. It stands to reason that there is a lot of wiggle room with regard to comprehensive and collision coverage cost, but not much with the base coverages. Any thoughts?

Click here for the results of my insurance inquiries after I turned 25 years old. [3]


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[3] Click here for the results of my insurance inquiries after I turned 25 years old.: http://www.bargaineering.com/articles/auto-insurance-the-25-milestone.html

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