Insurance on a new truck, $8500?!

[silverdoctor]

Originally Posted by *BigSexyHunter*

***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.

At 18? Good on you

[marxman]

Originally Posted by *BigSexyHunter*

***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?

wow 25 years ago 18 year old trades people never had it so good. but im not against progress. one thing hasnt changed, its probably a bad idea for an 18 year old to buy a new truck. the risk is high for insurance companies and i wouldnt pay 8000 a year to cramp my style in other areas.you seem to have a lot of pride over your money and position. just an observation.

[From The Hip]

Originally Posted by schmedlap

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" (?).

Good advice here but an 18 year old knows everything so this advice will most likely be ignored.

My advice for an 18 year old who figures he can afford to buy a $30,000+ truck and make the payment(and also suffer the 33% depreciation the moment it drives off the dealership lot) is to buy a good reliable used truck for a few grand and sock all that payment money away into a savings account so you can eventually put a down payment on a house that actually appreciates in value.

FTH

[Ormachek]

Bah, it's not so bad now! 11 years ago, at 19, with a perfect driving record, the best rate I could find was $3600 for plpd, that's $200,000 liability, that's it. For an 86 honda civic. About 9? Years ago they rolled out the insurance reforms and my rates dropped to about a third of that.

[sillyak]

18 year old kids buying brand new crew cab trucks?

What the heck is wrong with you!!!!!

Buy a decent used vehicle (less than 10 grand) and pay cash. Insurance will be way less. Take the difference from what you would pay for a new vehicle every month and invest it.


When you're 30 you'll have six figures in investments and your buddies that bought a new truck every 4 or 5 years will have nothing but a car payment every month. Seriously, crunch the numbers.

People complain that young people can't get ahead these days. That's bull****! I'm in my twenties, I just put 66 grand of my own cash down on a house, I have close to that again in investments. I have no debt outside my mortgage. I have a wife who can stay at home with our daughter. I have had no help in doing this. My job requires no education and the pay is nothing crazy. It just takes a bit of financial discipline, which is wholly lacking now a days.

If you want a new truck at 18 buck up and pay the insurance. It's not robbery, it's based on stats for your age group. Get married and get to 25 with no more accidents and tickets and watch the rate come down to $1200.

[Dacotensis]

If you can find something with around 20k per year of usage, you might do ok.

But then I see how most ppl drive their trucks with their foot pressing the pedal into the oil pan, all while pulling an overloaded trailer....

I've been where you are at with ins costs.
I drove an 82 gm van for a year and parked my truck while tickets came off my record. I was just a little older than you at the time.

The van looked like a pos. but it got me around.

A new truck will instantly start to be worth less the moment you drive it away.

Bank your money for awhile. Invest it and let it work for you.
When you are 50 you won't have to work anymore.

Before you hook up with some woman get a pre nuptial agreement.
Don't be her meal ticket...
Even a co habitation agreement if you aren't married but living with her.

I am warning you young man

Good luck in life.
We can look back on this thread in 5 years and review.

[gmcmax05]

Originally Posted by *BigSexyHunter*

***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?

Then why are u on here ****ing & moaning. Said you make good money, had an accident & now you have to pay boo frick'n hoo, I'm also tired of paying for accidents I HAVEN'T have because of clowns like you

[From The Hip]

Originally Posted by Dacotensis

If you can find something with around 20k per year of usage, you might do ok.

But then I see how most ppl drive their trucks with their foot pressing the pedal into the oil pan, all while pulling an overloaded trailer....

I've been where you are at with ins costs.
I drove an 82 gm van for a year and parked my truck while tickets came off my record. I was just a little older than you at the time.

The van looked like a pos. but it got me around.

A new truck will instantly start to be worth less the moment you drive it away.

Bank your money for awhile. Invest it and let it work for you.
When you are 50 you won't have to work anymore.

Before you hook up with some woman get a pre nuptial agreement.
Don't be her meal ticket...
Even a co habitation agreement if you aren't married but living with her.

I am warning you young man

Good luck in life.
We can look back on this thread in 5 years and review.

Even better advice that I previously quoted.And I would like to add my own observances of the "truck game".

A former friend of mine( I say former as I loaned him $1000 and he stiffed me) smacked up his POS car and decided to buy a good used truck.He was making decent money and of course he opted for the biggest/fanciest used truck he could get via credit(insurance was not an issue) and he really did not need it he wanted it.About 3 months later he goes on a road trip to Revelstoke BC to show off his truck and sure enough 3 months after that a fellow friend known by both of us take a road trip to Calgary to show off his newer and better truck.We are talking nothing but one upping here and that is all.Next thing you know another friend known to all 3 of us well he goes and buys a brand new F-150 4X4 full extended cab truck and worst of all he bought it locally and paid sticker price.Hell that truck cost him more than his mobile home did but at least his mobile home came with allmost an acre of deeded land.And the guy did this just to "one up" somebody.Seems pretty stupid to me.All through this I was driving my base model Ford Ranger with an inline 4 and 5 on the floor and using that truck to make a pretty good living.

Looking back on it the 1st guy lost his truck when he could not make the payments when he lost his job.The 2nd guy had his truck paid off by his girl friend when she sold her house during the short lived real estate boom when the new ski hill expansion went through but he later sold the truck and got burned buy a used car dealer and ended up with a beaten up Jeep YJ.The 3rd guy who went and bought a fancy brand new truck still has it AFAIK after making all those monthly payments...what is really stupid for his case is that he literally lives a 10 minute walk from where he works.

FTH

[The Elkster]

Or to shorten the lesson further...

EGO's are very expensive to feed. But salesmen will absolutely LOVE YOU!!!

The fact that you can afford something doesn't make it a smart purchase. I make decent money but don't plan to go out and buy gold plated condoms. 'nuff said.

To look at things from an insurance point of view. You've hardly started driving and you've already ringed up a 6000k claim which likely eclipses what you've paid them to date and that is early times. Now you want to insure a big dollar truck where repairs could be huge and likelihood of an accident is far higher than average based on all available info. IE. young guy, already had accident, buying macho truck (doesn't matter what you think or how you act they will look at it that way). Profiling does happen. Given the same info I would charge the same. Its all about statistics with insurance. Your info sets off all the bells. If you are ultra conservative and the one accident was truly an accident then tough luck but over all the stats would say this is a bad risk. Risk cost money.

[Softshark]

Save your money. Pay cash for a used vehicle, take responsibility insurance only and enjoy your (debt-)free life.

[From The Hip]

There is most definately an 18 year old driver in Calgary a female Mount Royal College student who is paying similar insurance rates...she is paying that rate because she rear ended me when I was stopped and had my signal light flashing to make a turn and she rear ended me doing 60 because she was *^$@!$& texting on her phone.She destroyed my brand new car and I most definately hope she gets soaked for $5000+ a year for insurance till she is 28 so as to teach her a lesson about what is important in life....answering a fricken text or paying attention to the road and what is in front of you as you are driving.

FTH

[TBark]

Spoken like an 18 yr old making a few bucks.
Like Elkster said, car salesmen love you guys.

TBark

Ah, good, just seen that you are a 4th PE, may not change things.
Show up for work and don't screw things up for yourself.
I'm a 3rd and company I work for has canned 4 young operators in past yr or so for improper conduct and attendance issues, 2 male and 2 female.

Stay cool.

[Au revoir, Gopher]

Originally Posted by Arachnodisiac

There are a few awesome things about being a female in my mid 30s.
This is one of them!

Just wait until your eldest gets his driver licence.

But yes, I like the point I'm at in my life too (my kids can't affect my insurance rate anymore).

ARG

[silverdoctor]

Sheesh. How many threads are on AO from parents trying to crowbar their kids out of the basement?

Young man is 18, good job, on his own? Wants to buy a truck? Give his hand a shake.

[npbra]

Crap, I bet the OP didn't realize his question would get answered by so many Grandmothers.

[Buckhead]

Originally Posted by silverdoctor

Sheesh. How many threads are on AO from parents trying to crowbar their kids out of the basement?

Young man is 18, good job, on his own? Wants to buy a truck? Give his hand a shake.

Exactly

[EP04]

I financed a new truck when I was 16 with my parents blessing of course co signers (they thought I was an idiot) but I had a good job milking cows before and after school and on weekends making 30/ hr. That god damn truck and insurance payment plagued me for 3 years. I put a good chunk of change down on the truck the payments were low but the insurance was absurd. I think I may have payed more for the insurance than the truck after it was all said and done.

[TBD]

was what the young fellow was leading to in his OP

** we're all getting SCREWED by insurance companies **

we should be locked in arm with this young man protesting outside one of the new skyscrapers these insurance companies are building all over the country !!

get over the ENVY for a few seconds and take a look at what you're paying for insurance these days ...

better yet compare it to what you were paying 10 yrs ago.

If you've got a business a few cars (one for yourself - the wife - one for the kids to share) house. Your over a grand per month (for fricking insurance !! )....

When has it ever been that high ?

these bastages are making a killing on the economy, there worse than lawyers !

... take a look at Warren Buffets Berkshire Hathaway holdings - insurance companys galore !


TBD


PS ... what's more pathetic - every time there's a hail storm in this country "... estimated damages 30 million, and that'll lead to increased premiums for next year "

It's like the business model they run these days has policy holders paying out the claims, and they continue holding the profit

boys - like lawyers and the financiers - this is an industry that LEACHES OFF the ecomomy - think about it every dime in profits they take out of the economy is VALUE destroyed

[Buckhead]

Originally Posted by TBD

was what the young fellow was leading to in his OP

** we're all getting SCREWED by insurance companies **

we should be locked in arm with this young man protesting outside one of the new skyscrapers these insurance companies are building all over the country !!

get over the ENVY for a few seconds and take a look at what you're paying for insurance these days ...

better yet compare it to what you were paying 10 yrs ago.

I don't know about you - but my insurance has pretty much gone down every year for the last 20 years.

You have to search around - takes a bit of time and effort.

[drake]

Originally Posted by *BigSexyHunter*

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?

Definitely buy it! Then lift and hang a set of nuts off the back. Do you wear white sunglasses? Wait ...don't answer that, I already know the answer. Good luck with your new purchase you "deserve" it!

In all seriousness though....buy a $5000 truck, you'll thank me in about 10 years

[Twisted Canuck]

Originally Posted by TBD

was what the young fellow was leading to in his OP

** we're all getting SCREWED by insurance companies **

we should be locked in arm with this young man protesting outside one of the new skyscrapers these insurance companies are building all over the country !!

get over the ENVY for a few seconds and take a look at what you're paying for insurance these days ...

better yet compare it to what you were paying 10 yrs ago.

If you got a business a few cars (one for yourself - the wife - one for the kids to share) house. Your over a grand per month (for fricking insurance !! )....

When has it ever been that high ?

these bastages are making a killing on the economy, there worse than lawyers !

... take a look at Warren Buffets Berkshire Hathaway holdings - insurance companys galore !


TBD

... it's pathetic - every time there's a hail storm in this country "... estimated damages 30 million, and that'll lead to increased premiums for next year "

It's like the business model they run these days has policy holders paying out the claims, and they continue holding the profit

I have 3 vehicles, 2014, 12, 09, plus utility trailer, my home, a rental home I own, business liability insurance with coverage for equipment, a couple life policies, WCB for myself that I have to carry for my contracts....all kinds of insurance. I carry full coverage on my vehicles PLPD Comp Collision. All in, for everything...I'm paying $750 a month.

You know why? Because I'm 47, and I have NEVER had an accident, and only 3 (none recently) speeding tickets in over 30 years of driving.

Do I feel like I am getting ripped off? Some days. But when the dishwasher supply valve leaked at my rental, and ruined a small area of hardwood floor, and the insurance company ponied up $16,000 to replace ALL the hardwood on my main floor because it couldn't be matched, no questions asked....I feel pretty good about it. That is my only claim ever.

And then 3 weeks ago, some 20 yr old kid, driving a big jacked up Dodge truck with his hat on backwards, and his white Oakleys, decided that after he had pulled ahead through a stop sign into an intersection at the mall, that he really wanted to go somewhere else and backed right on to the hood of my brand stinking new 2014 Yaris that my daughter was driving, because he couldn't see it over his tailgate, and his G'damn stereo was turned up so loud that he couldn't hear her on the horn honking at him, and she couldn't back out of his way fast enough because everyone knows you can back a big Dodge up really fast....

Yeah. I really feel tons of sympathy for you and your demographic because your rates are going to be $8500 a year, and you've only had one accident. So far.

Glad you make lots of money though. Spend it like you want, you earned it.

This is why I bought my son a 2006 Tacoma, in his name, with only PLPD insurance, a 4 cyl 2wd truck, under $10K....he is 16, and it still cost me $2100 for basic coverage, after his driver training credit. But that beats $8500 and truck payments to stoke the teeny ego.

[TRAPPER92]

If you are making that kind of money, own all the toys, etc, etc......
I would be buying an acerage and not renting - let the buddy pay part of mortgage instead of keeping the rent down. And at 18 - forget about the new truck - its a dead investment. Buy used and pay half the money (you can still get a decent shaggin' wagon)

The reason why insurance is so much is because most young guys are reckless drivers and think they are invincible. I teach in a highschool and believe me that the vast majority of the boys that get their licence are paying speeding, stunting, impaired, etc etc, tickets about a month after receiving them. The insurance companies would go broke if they weren't charging that much!

[Twisted Canuck]

And I want to know why it a new truck has been referred to as an 'investment' a number of times on this thread. In what way is it an investment? It depreciates immediately, it needs to be fueled, registered and insured constantly, repaired on occasion. Ask any accountant what that describes, and the term they will probably give you is 'liability'...something that costs you money to own and loses value at a fixed rate dependent on mileage and age.

LIABILITY.

The only vehicle that can properly be termed an 'investment' is a rare or antique car that you rarely or never drive, that goes up in value. Like a nice old Shelby Cobra, or 70 Hemi Cuda. No new vehicle you drive is an investment. EVER.

[TBD]

Originally Posted by drake

Definitely buy it! Then lift and hang a set of nuts off the back.

thought that was what you were supposed to do with a new truck ?

... and don't forget the stampeding horse on the bottom corner of the passenger side back window

Originally Posted by drake

In all seriousness though....buy a $5000 truck, you'll thank me in about 10 years

How many girls have you impressed with your 5K truck ? ^

[TBD]

Originally Posted by Twisted Canuck

I have 3 vehicles, 2014, 12, 09, plus utility trailer, my home, a rental home I own, business liability insurance with coverage for equipment, a couple life policies, WCB for myself that I have to carry for my contracts....all kinds of insurance. I carry full coverage on my vehicles PLPD Comp Collision. All in, for everything...I'm paying $750 a month.

You know why? Because I'm 47, and I have NEVER had an accident, and only 3 (none recently) speeding tickets in over 30 years of driving.

Do I feel like I am getting ripped off?

that's a grand with NO collision on any of the vehicles, I as well have an excellent driving rec and the wife perfect - with me a few speeding tickets over the last couple decades - that is all

.... and my insurance broker keeps telling me I'm getting a good deal (I ride his ass every year)

maybe time to check out another agency ?

[Twisted Canuck]

Originally Posted by TBD

How many girls have you impressed with your 5K truck ? ^

What kind of girls are you trying to impress? Gold diggers?

When I met the girl who has been my wife for 23 years and is still the love of my life, I was driving a bombed out old 77 Buick Riviera (I still miss that car). She didn't marry me for my vehicle, she married me for my character.

Or because I tricked her. My grandmother, God rest her soul, told me to my face on my wedding day she was too good for me. I agreed with her.

[TBD]

Originally Posted by Twisted Canuck

What kind of girls are you trying to impress? Gold diggers?

When I met the girl who has been my wife for 23 years and is still the love of my life, I was driving a bombed out old 77 Buick Riviera (I still miss that car). She didn't marry me for my vehicle, she married me for my character.

Or because I tricked her.

He's 18 and most probably not looking for a WIFE !


TBD


PS ... somebody needs to keep this auto market going OR harper is bound to give them another billion dollar taxpayer bail out !

Hey - did I ever tell you guys about the '72 stingray I restored when I was 16 - sunk every dime into that car - and have memories that'll last a life time !

.... I smartened up around age 23

sorry to hear about your Car, SUCKS having to deal with insurance companies !

[catnthehat]

Originally Posted by Twisted Canuck

What kind of girls are you trying to impress? Gold diggers?

When I met the girl who has been my wife for 23 years and is still the love of my life, I was driving a bombed out old 77 Buick Riviera (I still miss that car). She didn't marry me for my vehicle, she married me for my character.

Or because I tricked her. My grandmother, God rest her soul, told me to my face on my wedding day she was too good for me. I agreed with her.

When I met my wife I was driving a beat up chev and she was driving a '76 Cobra 2 in '77!
In fact she always has had have nicer wheels than me!!
Cat

[Twisted Canuck]

Originally Posted by TBD

He's 18 and most probably not looking for a WIFE !

Well then, it's still cheaper to trick them even if you aren't going to marry them, than it is to to pay that kind of insurance and truck payment. Just saying.

But, if you gotta have it, pay the piper and don't pizz and moan about it.

[twofifty]

Originally Posted by PGH

how exactly does this work?

The answer is in the Criminal Code under fraud.