#CarInsurance #NewCar #AutoInsurance #InsurancePremium #Geico
Why Did My Car Insurance Go Up by Almost 400% When Adding a New Car?
Understanding the Factors Behind the Increase
If you recently added a new car to your auto insurance policy and were shocked to see your premium go up by almost 400%, you’re not alone. There are several factors that could contribute to such a significant increase in your insurance costs.
Age and Driving Experience
One important factor that can impact your insurance premium is your age and driving experience. In this case, the fact that you are 25 years old and just got your license a month ago could play a role in the increase. Insurance companies typically consider younger, less experienced drivers to be higher risk, which can result in higher premiums.
Number of Vehicles and Drivers
Adding a new car to your policy can also impact your premium, especially if you already have multiple vehicles and drivers covered. Insuring an additional vehicle can increase the overall risk for the insurance company, leading to a higher premium.
Ownership Details
It’s important to provide accurate information about the ownership of the new vehicle when updating your policy. In this case, stating that the new car is owned by your mom could also have an impact on the premium. Insurance companies take into account who owns and drives the vehicles on the policy when calculating premiums.
Shop Around for Better Rates
If you’re concerned about the significant increase in your insurance premium, it might be worth shopping around for better rates. Different insurance companies calculate premiums differently, so you may be able to find a more affordable option by comparing quotes from multiple insurers.
In conclusion, while a nearly 400% increase in your car insurance premium when adding a new car may seem drastic, there are several factors that could be contributing to the higher cost. By understanding these factors and exploring your options to shop around for better rates, you may be able to find a more affordable insurance policy for your new vehicle.
Brand new cars are typically fairly expensive to insure. $3k/year is a bit more than I would expect. You can always shop around and see what other offers you get.
You’re a new driver. You were presumably not listed as a primary driver on any vehicle before, and you may be now. You’re adding a brand new Subaru Impreza to the policy. So the price jump doesn’t seem that crazy, really. It honestly sounds about right if this is your car, and you’re basically a brand new driver. If you think you’re being overcharged, shop around for quotes.
Edit to add:
OP edited their post to add in “When I added the new car, I stated that the car is owned by my mom.”
OP – Is this Subaru actually titled out to your mom, or you? When I read this post, it comes across like the car is actually yours. If the car is titled out to you and not your mom, you cannot tell insurance that it’s titled to your mom in order to try to get better rates. That’s considered rate evasion, and is a form of insurance fraud.
Yep, you’re a new driver, and it’s a brand new car, so higher insurance premiums are to be expected.
Do shop around for other quotes though. Geico might be giving you a little bit of “rate creep.”
It’s a bit late now, but for next time, always remember to get quotes BEFORE you buy the car, so you know what you’re getting into.
I added a 2024 BMW i4 (72,000 MSRP) that replaced our 2015 Acura TLX and the jump in insurance premium was only like $400-600 more a year. I was worried it would be a lot more due to a brand new BMW EV… No accidents and in my late 30s.
This is 100% because you’re a new driver and are listed as primary on a new car. The car is probably contributing a few hundred to it, the new driver is contributing a few thousand.
I bet you could shop around and get a much cheaper quote.
So if you had a permit you were not actually costing anything because you would be covered under your parents insurance driving their car. Since you got your license you are now a driver on the insurance. Adding a car plus a brand new driver I could easily see a 3k increase. Shop around of course.
Brand new car, **and** brand new driver.
That’s a combination that’s high-risk for a payout for the insurance company, and they can’t guarantee it won’t be you driving any of the cars so they’ll price it as if you are driving the brand new car (since this is possible, and the most expensive thing for them to cover).
If you want to drop the premium, get your own insurance on a named vehicle.
Also there was probably only liability coverage on the other 2 cars. The new car most likely also has comprehensive/collision coverage which is a lot more expensive.
As others have said. New driver and new car. Chances are it’s gonna get wrecked so insurance company just charges you accordingly. Shop around and see if you can get cheaper rates though.
Alternatively just get an old car without collision coverage and it will be much much much cheaper.
So when you had 2 cars and 4 drivers, Mom and Dad were both “Principal Operators” and you and sibling were ‘occasional operators’.
Once you got the 3rd car, you or sibling went from an occasional use operator to a principal use operator, which is WAY WAY more expensive. With some companies, you would have been better off getting an old car you just need liability insurance on for 3 years, but I believe Geico always rates the highest rated driver to the highest rated car regardless. Which is why the premium went up so much. You will be surcharged for being an inexperienced operator for 3 years after you got your license.
Its because its a Subaru Impreza SPORT being driven by an inexperienced 20 something YO driver. The numbers say you are likely wreck the thing so they raise the premium to make up for the risk. You still wouldve got a substantial increase being a new driver with a brand new car, but that particular model is a giant red flag for insurance.
“Sport”. That car is going to have high rates. Did you not ask the insurance company what the rates will be when adding that specific car?
If you would have added another 2004 Camry, it would not go up that much.
Statistically, people who drive an Impreza Sport are more likely to cause a crash than someone driving a non “sport” car.
Who actually owns the car? They would likely be a primary driver.
New driver.. still 25 and under rate applies.. and a sports car is going to jack the insurance up..
Honestly sounds about right. 1000 dollars a year is honestly super cheap, so I’m assuming your parents are both long time safe drivers and the cars are paid off. The two biggest factors driving up your rates right now are A: Your a new driver, as stated. Turning in some kind of proof of drivers education can help lower the cost. And B: A brand new car. Any new car or leased car is going to have higher premiums as you’ll be required to carry more coverage and also lower deductibles.
Did you finance the car or buy for cash?
When financing, the bank will require full coverage (liability, collision, comprehensive) while the state would only require liability otherwise. It’s possible that something added more coverage to the existing vehicles? “Add this one to the policy, and need comprehensive and collision too”