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Old 11-13-2014, 10:43 AM
*BigSexyHunter* *BigSexyHunter* is offline
 
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Angry Insurance on a new truck, $8500?!

So I finally decided to buy myself a brand new F-150.

Im 18, male, licensed in 2011, I have been in one $6000 accident, no other offences.

I went to the local dealership, looked at trucks, worked out all my financing, and took it for a test drive to the insurance place(s). $8500 a year.... (Thats with a $2000 deductible on collision, $2,000,000) That works out to more than the truck payment. Both insurances companies (A local broker and the co-operators) seemed very surprised it was so high. This is for full coverage as is required to finance a vehicle.

This is damn robbery, theft, BULLS**T.

How do they expect somebody who is 18 & living alone to afford this? Mommy & Daddy? Not me. Its not like I could not afford it, but I wouldn't be living very comfortably. AND this is me having a very good job. I cant even imagine how somebody going to school could afford this.

Im just wondering if anybody has had a similar experience,
and if anybody would know a sneaky way to get this price WAY down?
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  #2  
Old 11-13-2014, 10:55 AM
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chadyaz chadyaz is offline
 
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Most 18 years olds going to school don't buy brand new trucks so they don't have to worry about full coverage.

My advice, don't get speeding tickets or get into accidents for several years. Buy a new vehicle when your insurance rates decrease.
  #3  
Old 11-13-2014, 10:59 AM
silverdoctor silverdoctor is offline
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This is where I feel for the younger generation, hard to get a leg up when the cost of everything is so bloody high. No wonder so many kids stay at home.
  #4  
Old 11-13-2014, 10:59 AM
Vigsy Vigsy is offline
 
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Im 19 and to put insurance on a new f150 for me is only 4000 a year. Puts into perspective what a clean driving record can do for ya.
  #5  
Old 11-13-2014, 11:03 AM
*BigSexyHunter* *BigSexyHunter* is offline
 
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Its also a super crew (I think... the 4-door with the big back doors) Not sure how much of a difference this would make.
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  #6  
Old 11-13-2014, 11:06 AM
st99 st99 is offline
 
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keep a clean record and don't buy new before you're 25
  #7  
Old 11-13-2014, 11:06 AM
fish_e_o fish_e_o is offline
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get farm insurance

that or drive a beater until you can afford better
  #8  
Old 11-13-2014, 11:07 AM
Vigsy Vigsy is offline
 
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Quote:
Originally Posted by *BigSexyHunter* View Post
Its also a super crew (I think... the 4-door with the big back doors) Not sure how much of a difference this would make.
No difference. I was quoted on a 2014 fully loaded supercrew and it came out to i think 4000-4300 depending on company. Never had an accident and only one speeding ticket in my first year of driving. Hate to say it but that accident is going to mess you up for awhile.
  #9  
Old 11-13-2014, 11:07 AM
Kyle Kyle is offline
 
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I don't think you need a brand new F-150 at 18. I purchased a 6 year old truck at 18 with cash. At 24 and no accidents my rates have dropped SIGNIFICANTLY and from what I understand drop quite a bit more at 25. My advice is buy an older truck and don't purchase coverage on your truck(get the minimum). Why would you want debt at 18 years old anyways???
  #10  
Old 11-13-2014, 11:12 AM
calgarychef calgarychef is offline
 
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Kyle is gonna be a rich man before he knows it....that's how to suceed in life.
  #11  
Old 11-13-2014, 11:12 AM
schmedlap schmedlap is offline
 
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That is life for people your age, especially when you have had one accident. The simple truth is that unless you are willing to pay that kind of money for insurance (if you shop around you might get it down a grand or two, but that is it), you cannot have a new or late model vehicle that is financed. If a vehicle is financed you must have collision insurance and comprehensive insurance (to protect the lender) and collision is likely the single biggest component of the cost. You need to do what most 18 year olds have to do (my 2 sons have both done this, since they were 16). Get a good older vehicle (something under $5,000 value) and pay cash for it - in our case it was Dad's cash, but the vehicles were registered to them. Then it is not worth the cost of collision insurance and you aren't required to get it. Also the comprehensive (if you choose to get it) will be somewhat less, because the value insured is small. Get a few years of claim free driving in, and then the cost of insurance for something "newish" will go way down.
My 23 year old son, with one accident claim from 4 years ago, is only paying about $1,350 per year for full coverage ($500 deductibles) on a vehicle worth about $7,500.
Instead of succumbing to "look at me, shiny, shiny" disease, be practical. It will also save you the finance and depreciation costs of the newer vehicle, which will inevitably far exceed maintenance and repair costs on a good older one. Make a distinction between what one "wants" and what one "needs" (?).
  #12  
Old 11-13-2014, 11:15 AM
Dan Foss Dan Foss is offline
 
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I went through the same. And $4000 a year on a new truck is still VERY high. Im 27 now. My Accident Fell off my record 6 months ago (it takes 6 years). My insurance is now finally at a reasonable price. I tried to buy a new truck when I was 23 my insurance payments would have been more than the truck payments. Thats what you get with Privatized Insurance. For a couple years I actually switched everything to BC (I had a buddy living there, used his address) and got insurance without carrying my driving record over (so essentially registered my vehicle as if i was a 16yr old with no record) and Paid half what alberta companies wanted me to pay.

Instead went to an auction with a mechanic buddy and bought something used and in great shape. Still driving that truck. Only just recently looked at buying new again. Insurance is reasonable now but decided I put way too many KMs on a truck in a year (approx 55k.) to finance a truck for 4 years. Rather buy a few years used again at 1/3 the price and drive the **** out of it. One day when it makes sense to have more than 1 vehicle I may get a new truck.
  #13  
Old 11-13-2014, 11:18 AM
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dmac dmac is offline
 
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Quote:
Originally Posted by Kyle View Post
I don't think you need a brand new F-150 at 18. I purchased a 6 year old truck at 18 with cash. At 24 and no accidents my rates have dropped SIGNIFICANTLY and from what I understand drop quite a bit more at 25. My advice is buy an older truck and don't purchase coverage on your truck(get the minimum). Why would you want debt at 18 years old anyways???
Good advice.

Insurance statistics would likely suggest that at 18 years, they expect that you could very well have another accident. If it happens in that shiny new F-150, its probably going to cost a lot more than 6 K$. Thus the high premiums. Good luck.
  #14  
Old 11-13-2014, 11:18 AM
expmler expmler is offline
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Live within your means.
  #15  
Old 11-13-2014, 11:18 AM
Dan Foss Dan Foss is offline
 
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Quote:
Originally Posted by schmedlap View Post
That is life for people your age, especially when you have had one accident. The simple truth is that unless you are willing to pay that kind of money for insurance (if you shop around you might get it down a grand or two, but that is it), you cannot have a new or late model vehicle that is financed. If a vehicle is financed you must have collision insurance and comprehensive insurance (to protect the lender) and collision is likely the single biggest component of the cost. You need to do what most 18 year olds have to do (my 2 sons have both done this, since they were 16). Get a good older vehicle (something under $5,000 value) and pay cash for it - in our case it was Dad's cash, but the vehicles were registered to them. Then it is not worth the cost of collision insurance and you aren't required to get it. Also the comprehensive (if you choose to get it) will be somewhat less, because the value insured is small. Get a few years of claim free driving in, and then the cost of insurance for something "newish" will go way down.
My 23 year old son, with one accident claim from 4 years ago, is only paying about $1,350 per year for full coverage ($500 deductibles) on a vehicle worth about $7,500.
Instead of succumbing to "look at me, shiny, shiny" disease, be practical. It will also save you the finance and depreciation costs of the newer vehicle, which will inevitably far exceed maintenance and repair costs on a good older one. Make a distinction between what one "wants" and what one "needs" (?).
doesn't the name "big sexy hunter" kinda say it all anyways?
  #16  
Old 11-13-2014, 11:20 AM
flyslinger flyslinger is offline
 
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At 18 you should not be buying and financing a new truck! It's a long commitment for a point in your life were most people aren't very stable. I drive a 2000 f150 and it doesn't matter to me if that thing gets wrecked so I only pay
$135 a month. thats alot of beer money savings! which is the most important thing when you are 18!
  #17  
Old 11-13-2014, 11:21 AM
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Quote:
Originally Posted by Dan Foss View Post
doesn't the name "big sexy hunter" kinda say it all anyways?
Not that there's anything wrong with it.....
  #18  
Old 11-13-2014, 11:30 AM
rugatika rugatika is offline
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IF I was an insurance company...I wouldn't sell insurance to an 18 year old kid at all. No offence...but I was 18 once. 18 year olds are terrible investments.

Get a beater and basic insurance.
  #19  
Old 11-13-2014, 11:31 AM
petew petew is offline
 
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Get an older truck and the money you save greatly offsets any repairs it will need.
  #20  
Old 11-13-2014, 11:32 AM
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Kim473 Kim473 is offline
 
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Get quotes from companies. sounds a little high, but just a touch. Get a good used one a few years old and rates will much cheaper. 1/2
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  #21  
Old 11-13-2014, 11:39 AM
JB_AOL JB_AOL is offline
 
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Why do you feel you need a brand new truck @ 18?

Teenage Males are the highest risk Insurance group, whether you like it or not.
  #22  
Old 11-13-2014, 11:44 AM
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Junglefisher Junglefisher is offline
 
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Quote:
Originally Posted by fish_e_o View Post
get farm insurance

Explain please?

OP, shop around, shop around and shop around some more.
I was told by a broker that insurance companies have quotas. If they have too many 18YOs on the books for your area, they don't want more so they put the price way up.
If you want to buy a shiny new truck then do so. I'll almost guarrantee at some point you will regret it, but that's how we learn (well, some people do).
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  #23  
Old 11-13-2014, 11:44 AM
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JohninAB JohninAB is offline
 
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Just another example of the Alberta Advantage!

Kids in Lloydminster Alberta would get a post office box as the post office was on Sask side. Way more realistic insurance rates.

I will not even get into my rant on this subject.
  #24  
Old 11-13-2014, 11:46 AM
BANG BANG is offline
 
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No one needs a new truck but we are conditioned to want shiny new things.
Worst investment anyone could make.
Warren buffet has never owned a new vehicle but what does he know.
Heed the advice on this thread young hunter you will be thankfull later in life.
  #25  
Old 11-13-2014, 11:46 AM
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357xp 357xp is offline
 
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Gotta go with what most others say, don't buy a new truck till you have been drivin at least 10 years clean. For me, I doubt I will ever buy new. My current truck I paid $1300 for and its been goin 2.5 years already with only minor repairs. Although I would like a better one for long range trips, this works fine for now.
  #26  
Old 11-13-2014, 11:48 AM
Yycadm Yycadm is offline
 
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As hard as it is to choke it down, it is going to cost you a bagful of $$$ every year until you're 25 WITHOUT anything on your lic. or record...add a $6000 accident and you are pricing yourself right out of a new vehicle until you're 25.

Insurance companies live and die by actuarial tables, and the tables say that you are at the bleeding tip of the group of people most likely to cost them money due to accidents. You don't have to like it, and they don't care one way or another. If you want a new truck, that's what it's going to cost you...trying to short-cut that will not work, and will bite you in the A**.

I'll tell you the same thing I told my son at the same age; buy a 10 year old vehicle in perfect mechanical condition, insure it, and put the difference between that cost, and the price of the new truck plus insurance in a separate account. You will be AMAZED at how fast you bank the total purchase price of the truck. When you can pay cash, buy it then. It will save you thousands of dollars per year on insurance, you won't have a truck payment for the next 8 years, and you will be MUCH happier.

Thankfully, he took my advice and bought an old vehicle at 18. By 22 he had the full price of a nicer truck than the first, he was 22 and not 18, his record was clean, and his insurance was 40% what it would have been at 18. Be honest with yourself; at your age you don't NEED a brand new truck...you WANT a brand new truck. You'll still WANT a new truck in a few years, but by then you will be able to AFFORD a new truck. Buying what you want now is setting yourself up for a lifetime of being behind the 8-ball your whole life
  #27  
Old 11-13-2014, 12:05 PM
*BigSexyHunter* *BigSexyHunter* is offline
 
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***If you all really want to know im a 4th Class Power Engineer (Started in grade 11) making $5500 a month after taxes. (Plus incentives, bonuses, etc.) I'm at a very stable company and position within my company. And this wage is an entry level wage. Im not usually one to say my wage but you all kinda asked for it. Im not some kid that has had everything handed to him on a silver platter.***

I rent a nice acreage in the country with a roommate-keeping my rent costs down.

I also own my own car, boat, quad, guns.... All without any financial family help.

I wanted a new truck because I can afford a new truck. (Or so I thought lol) I have worked my butt off for the reason of being able to live completely independent from my parents, and living very comfortably at that, all at the age of 18. With no Debt. AND with money being put into a RSP Mutual Fund.

Also-What does my name have to do with anything?
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Last edited by *BigSexyHunter*; 11-13-2014 at 12:16 PM.
  #28  
Old 11-13-2014, 12:09 PM
riden riden is offline
 
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Quote:
Originally Posted by rugatika View Post
IF I was an insurance company...I wouldn't sell insurance to an 18 year old kid at all. No offence...but I was 18 once. 18 year olds are terrible investments.

Get a beater and basic insurance.
Not a lot of sympathy in this post.

And, none from me either.

Seriously, what did you think it a going to cost? I'm a little surprised it is only $8500. That is what things cost.
  #29  
Old 11-13-2014, 12:12 PM
*BigSexyHunter* *BigSexyHunter* is offline
 
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So now im left wondering how many KM's is still good to buy a used truck? I have only owned cars up to this point so I could afford gas and insurance on my own.

At what year and KM's (generally) do trucks usually start having problems with them?
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  #30  
Old 11-13-2014, 12:14 PM
riden riden is offline
 
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Quote:
Originally Posted by *BigSexyHunter* View Post
So now im left wondering how many KM's is still good to buy a used truck? I have only owned cars up to this point so I could afford gas and insurance on my own.

At what year and KM's (generally) do trucks usually start having problems with them?
60 001KMs
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