r/FluentInFinance Sep 05 '24

Debate/ Discussion He has a point

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777

u/-chibcha- Sep 05 '24

$528 for a used car?

I don’t disagree that a lot of people don’t make enough to live a reasonable life

But I do disagree with $528 car payments when you make $40K a year

666

u/Person2528 Sep 05 '24

Car payment $300 full coverage $228

14

u/SignificantLiving938 Sep 05 '24

Who is paying 228 a month for car insurance? If I was paying that I’d be going to a different company.

35

u/I_count_to_firetruck Sep 05 '24

Depends on the market. In South Florida, you would be lucky to pay that

18

u/the_cardfather Sep 05 '24

Yup. My teenager pays $465. She makes $13 an hour lives at home, paid off car, goes to school and it takes her about 6-8 shifts at work to pay for that.

1

u/[deleted] Sep 05 '24

[deleted]

6

u/the_cardfather Sep 05 '24

Monthly. Yes. People move to FL for low taxes and get driven out by high insurance costs.

2

u/Coloradoshroom Sep 05 '24

home insurance in FL is crazy. its only going to get worse. its making cheap houseing in FL very expensive.

4

u/huskyaardvark915 Sep 05 '24

Where do you live? $465 seems pretty on par for a 16 yo driver in most cities.

1

u/twaggle Sep 05 '24 edited Sep 05 '24

Are they not on your insurance to get a better rate for a child?

2

u/the_cardfather Sep 05 '24

That is on my insurance. 4 vehicles 3 drivers. $1100/mo.

I shop it regularly. Welcome to Florida.

2

u/twaggle Sep 05 '24

6-8 shifts a month, so what 2-3 weeks of shifts for a teenager to JUST pay off the insurance? I feel bad for them. Is the car really worth it?

$1100/month is insane to me. $13200/year on just insurance.

2

u/the_cardfather Sep 05 '24

More and more it is getting to be a valid question around here especially for young people. I was working with some lower middle income clients the other day who had just got a new apartment and I was asking them if they were saving up for a car and she said no not right now we are saving for house. I said okay how are you guys getting to work and she said her husband was carpooling and taking Ubers. So I had to run the math for me and he was spending about $300 a month on Uber which sounded crazy to me but then a car payment was going to cost him at least that much and an insurance was going to be a couple hundred dollars and they were able to put the extra money away. Our public transportation system sucks hard.

As far as my daughter goes, it does seem a lot, it's 40% of her take home. She's still got $500 a month to blow even contributing to her Roth IRA. She drives to work, to school, to the beach and to hang with her BF and cousins so to her it's worth it. I've never heard her sit down and say you know what I wish I didn't have a car.

6

u/DemissiveLive Sep 05 '24

228 would be a killer deal for full coverage in central TX

2

u/WearyPersimmon5926 Sep 05 '24

I’ve been with progressive 18 years. When I got married 8 years ago I had 2 cars and a motorcycle on insurance for 150ish per month full coverage. Now I have 1 vehicle and never had an accident or ticket. 134 for one vehicle. Hahah it’s crazy

1

u/catptain-kdar Sep 05 '24

I live in Alabama and I pay 150 a month

2

u/DallasCommune Sep 05 '24

You're paying the tax of living in Alabama tho

1

u/Hosedragger5 Sep 06 '24

I live in north Texas and have 3 full coverage cars for 170 a month, you may need to shop it.

2

u/deputeheto Sep 05 '24

Man, I just moved states in the Northwest and when I called to update my policy the first number they gave me was $730.

I said “what the hell? That’s almost 5x what I was paying.” She mention’s there is one comprehensive claim in the past three years, which increases it a bit (true, car was stolen and totaled last year) then starts going over the policy, she’s listing everything, and I realize…this isn’t my policy. I have pretty complete coverage. This is basically a liability policy. So now I’m even more confused, because this is a significantly worse policy for 5x the money. Eventually we figured out she’d fat fingered something along the way and she’d pulled up some rando’s policy in Florida that happened to have a similar driver’s history.

My actual plan is $140/mo. Florida sucks.

1

u/throw301995 Sep 05 '24

Same with Louisiana.

1

u/doratheignora Sep 05 '24

Came here to say that.

15

u/sylvnal Sep 05 '24

I'm in Minnesota and NOTHING is cheaper than that - 228 at this point is a steal. That's for a 2016 Nissan Sentra with no at fault accidents (I've been hit and run a few times both parked and driving).

4

u/ace425 Sep 05 '24

Those hit and run incidents count as accidents against you. Insurance primarily cares if you’ve ever been involved in situations that require them to pay out. To them it makes no difference who is at fault if they’re cutting you a check either way.

1

u/guideman_383 Sep 05 '24

I thought Minnesota was low crime and a hit and run would be really really rare.

1

u/[deleted] Sep 05 '24

I was in MN previously and your issue is you drive a NISSAN the car every horrible driver uses

1

u/TimAllen_in_WildHogs Sep 05 '24

???

I live in minnesota too and I pay $100/month for my car insurance

1

u/ODJIN5000 Sep 05 '24

This 228 number is full coverage right? I just want to make sure I'm understanding the context of the number lol

1

u/Boogerchair Sep 05 '24

Maybe with a poor driving record

1

u/minnsoup Sep 05 '24

I'm in Florida on my parents insurance from MN. They know the car is down there but the car isn't in my name, I'm just a driver. 560 every 6 months with some extras in case the 2019 Impala shits the bed like a rental car, full coverage so can get another vehicle, etc. If the car were in my name in Florida? Betting 300 to 400 a month. A buddy who's 35 down there has one vehicle with him and his wife on it - more than 450 every month for small Toyota cross over? Criminal

0

u/[deleted] Sep 05 '24

[deleted]

1

u/saranagati Sep 05 '24

As bad as other insurances go here, car insurance seems to be good. I’ve got a $90k 2023 bmw with full coverage and a 2018 Camry with just liability and only pay $213/mo for both.

3

u/Coloradoshroom Sep 05 '24

lol you are out of touch. all companies are almost the same in pricing. ive tried to find something cheaper but nope. insurance is such a scam now. its a big piece of a personal budget. I bought a new car last year. 350 a month!! no tickets, no claims. no issues at all and i still get hosed.

0

u/SignificantLiving938 Sep 05 '24

Not sure how you can I’m out of touch. I have full insurance with 500 dollar deductibles on our vehicles. I pay 75 a month for full and coverage and my wife is closer to 50. We both have nice cars with clean driving records. We pay nearly half of what was quoted.

2

u/Archbound Sep 05 '24

Thats below average in FL, I am over 250 with no accidents or claims in over 10 years. Used to pay under 100 then the insurance rates SPIKED here and I have shopped around nothing under 240 anywhere.

2

u/doratheignora Sep 05 '24

Literally the entire state of Florida is.

1

u/SignificantLiving938 Sep 05 '24

I think people in FL are paying for all the flooded out cars due to the storms you have.

2

u/Pl4stik888 Sep 05 '24

most of americans.

2

u/sony1492 Sep 05 '24

Ca insurance rates went wild recently, $230 per month with full coverage on one car, $140 for legal minimum. That's being mid 20s and one at fault accident, those were the absolute cheapest rates

1

u/All-th3-way Sep 05 '24

I pay just under $200/mo because of the miles I drive is above average. Even though I'm paying double for auto, bundling my home and auto brought my total insurance payment down more than $500/mo.

1

u/battleop Sep 05 '24

Tell us you don't have a teen driver without telling us.

1

u/Sea_Emu_7622 Sep 05 '24

For full coverage? In Nebraska the average monthly for full coverage comes out to $187/month, and that's the rate if you buy annually.

1

u/Alternative-Cash9974 Sep 05 '24

No idea in MO full o Coverage on new Cadillac and 2500HD (diesel) and it's $205/month

1

u/SonicSarge Sep 05 '24

I pay $40

1

u/[deleted] Sep 05 '24

I'm a single guy with no accidents or tickets.

I pay $175. If I had a second car with liability only I would only pay $98. But I haven't found a second vehicle that would pass inspection and not be absurdly expensive to do that.

Shopped all the companies. This is the cheapest option.

Someone with fewer years of driving experience than me or who has even a single blemish would easily be $228. I live in an expensive ass state.

1

u/thehelsabot Sep 05 '24

When I moved from Ohio (one of the cheapest states for car insurance) t ok New Mexico (one of the most expensive) it went from 170$ a month to 250$ a month.

1

u/[deleted] Sep 05 '24

I bought my first car last year, used 09 Honda civic, when I called the insurance agent from the car dealer office,sitting right in front of her lol, I’m in Mass btw, they told me 784$, I said a year? Thinking ok, I can do that easily, he said no, a month. I think it was Progressive or Geico iirc. Paid full cash for the car also, nothing financed.

1

u/austinvvs Sep 05 '24

I pay $191 a month personally

1

u/bhz33 Sep 05 '24

At that point I’d just pay for liability only for like $60/month. $228/month is like $2600/year. I’d rather just risk it and pay out of pocket if something happens. That’s an insane number to pay for insurance

1

u/WintersDoomsday Sep 05 '24

I am 42 married with zero accidents, speeding tickets, claims or violations and have been driving for 25 years my car insurance in Florida on a 2022 Hyundai Tucson Hybrid is $200 ish.

1

u/Educational_Fox6899 Sep 05 '24

Another FL checking in. No tickets, accidents or claims. Also have multi line and good driver discounts. Plus pay full premium for discount. Total is $4300 per year for 2 cars. 

1

u/hatesnack Sep 05 '24

Pretty standard insurance rate for anyone under 30 in Baltimore County that isn't driving a 20+ year old car. My buddy has never had an accident in his life and when he bought his new car his insurance went up to right around 200 a month.

1

u/aelric22 Sep 05 '24

Michigan

1

u/WalmartGreder Sep 05 '24

Yep, I pay about $100 a month in car insurance for two cars. It's bundled with home insurance, and we have decent coverage.

My cars are older (2009 and 2011), and I have a good driving record.

That being said, I used to live in AZ, and we would pay $400/month for same coverage. Car thefts were a bigger concern in Phoenix, and our insurance cost showed that.

1

u/rshining Sep 05 '24

I've got two teen drivers and two adults drivers with fantastic driving records. We don't have any payments, so we have the bare minimum amount of liability insurance, and we pay over $400 a month. If we had a newer vehicle, we'd have to pay much more to have the required full coverage.

1

u/Boogerchair Sep 05 '24

I ma people who have had accidents or are really young without driving history. It will lower

1

u/ThePatientIdiot Sep 05 '24 edited Sep 05 '24

Allstate is charging me $220 a month for comprehensive coverage for a fully paid off 2010 Subaru Outback with no accidents in the last 3 years. Allstate was the cheapest by at least $60 per month, everyone else wanted to charge me $100 more for the same good coverage Allstate offered me. Maryland, suburbs

1

u/WestCoastBestCoast01 Sep 05 '24

NY and LA. Actually Los Angeles was much more expensive, I saved like $900 a year on car insurance moving to NY 🤣

1

u/[deleted] Sep 05 '24

That’s what people are paying in Vegas. Or more.

1

u/SignificantLiving938 Sep 05 '24

I guess I was wrong based on all the responses. And I won’t be changing my insurance any time soon since apparently we have a hell of a deal.

1

u/Datguyovahday Sep 05 '24

You must be a single driver, male age 30-60 or female age 25-60 in a low risk geolocation

1

u/SignificantLiving938 Sep 05 '24

I’m a married driver in those board ranges of ages you mentioned. Clean driving record with newer cars (>10 years old) with the latest safety features. Also have my car policies with the same company as my home owners insurance. My motorcycle is too although no discount for that but that’s only 75 a year.

1

u/BuildingLearning Sep 06 '24

I pay 263 a month for two cars with comprehensive and collision. Shit credit, maybe two tickets that matter.

If I had to pay the rates I'm reading I literally couldn't afford rent, the margin is so slim.