Returning F150 due to insurance increase
12-15-2015, 12:57 AM
#12
Senior Member
That sucks. Your experience still doesn't necessarily mean it will happen to others though given the variety of things that factor into someone's rates. Might be worth it for 15/16 owners to keep an eye on them though.
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Summers22 (12-15-2015)
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12-15-2015, 01:09 AM
#14
Senior Member
Last year I put my newly licenced son on the 150. It went from $500/6mo. to $1250/6mo. I can't wait to see what happens in a few months when son #2 gets his licence.
12-15-2015, 08:01 AM
#16
Senior Member
Some facts:
1) Insurance industry uses an insurance credit score which should be found on your policy. These range from 200 - 997. The OP should check his policy and see what the score was last year and this year to see how that might have affected rates.
Your rate was determined in part by your insurance score. Had your score been higher, you may have qualified for a lower rate. The following characteristics influence your score:
Age of Newest Account - Industry research shows that consumers with recently opened accounts experience more insurance losses. Our score considers how long it has been since you opened your last account. To improve this aspect of your score, consider keeping your oldest accounts active and only open new accounts when needed. In order to achieve the best rating, the age of your most recently opened account must be at least 3.5 years old.
Number of Accounts Reported Within 6 Months - Industry research shows that consumers with a large number of reported accounts have more insurance losses. Our score considers the number of accounts reported by your creditors within the last 6 months. To improve this aspect of your score, open new accounts only when needed.
Percent Open Bankcard Accounts to All Open Revolving Accounts - Industry research shows that consumers who have a higher proportion of open bankcard accounts to open revolving accounts have fewer insurance losses. Bankcard accounts are defined as revolving accounts for banks, bankcard companies, national credit card companies, saving and loan associations and credit unions. Revolving accounts include credit cards and credit lines and are considered open if they have not been reported as closed. Our score considers the number of open bankcard accounts relative to the number of open
revolving accounts on your credit report. To improve this aspect of your score, consider using fewer sources to obtain goods and services. In addition, be careful not to maintain high balances on bankcard accounts.
Number of Department Store Accounts - Industry research shows that consumers who open more accounts with department stores experience more insurance losses. Our score considers the number of accounts that you have opened with department stores. These accounts can be currently opened or closed. To improve this aspect of your score, open new accounts only when needed, as once you have opened the account and regardless of whether you use it or not, your score will be impacted by this factor.
2) Initial rates were set for the 2015 with no experience repairing them. As insurers gain experience, they adjust rates. In July the Insurance Institute for Highway Safety reported that after a crash test it cost 26 percent more to repair the new aluminum F-150 than it did the steel-bodied predecessor. Insurers would look at that, and their own experience, in setting rates.
3) Terms like "full coverage" are meaningless. One has to compare line by line to see what exactly changed. In addition, each year states make changes to insurance requirements that can affect rates.
4) Each insurance company acts differently, so don't take one experience and think this is the norm.
I've never heard of returning a vehicle. If one walks away from auto loan, you'll take a huge credit hit and your insurance score will likely plummet.
1) Insurance industry uses an insurance credit score which should be found on your policy. These range from 200 - 997. The OP should check his policy and see what the score was last year and this year to see how that might have affected rates.
Your rate was determined in part by your insurance score. Had your score been higher, you may have qualified for a lower rate. The following characteristics influence your score:
Age of Newest Account - Industry research shows that consumers with recently opened accounts experience more insurance losses. Our score considers how long it has been since you opened your last account. To improve this aspect of your score, consider keeping your oldest accounts active and only open new accounts when needed. In order to achieve the best rating, the age of your most recently opened account must be at least 3.5 years old.
Number of Accounts Reported Within 6 Months - Industry research shows that consumers with a large number of reported accounts have more insurance losses. Our score considers the number of accounts reported by your creditors within the last 6 months. To improve this aspect of your score, open new accounts only when needed.
Percent Open Bankcard Accounts to All Open Revolving Accounts - Industry research shows that consumers who have a higher proportion of open bankcard accounts to open revolving accounts have fewer insurance losses. Bankcard accounts are defined as revolving accounts for banks, bankcard companies, national credit card companies, saving and loan associations and credit unions. Revolving accounts include credit cards and credit lines and are considered open if they have not been reported as closed. Our score considers the number of open bankcard accounts relative to the number of open
revolving accounts on your credit report. To improve this aspect of your score, consider using fewer sources to obtain goods and services. In addition, be careful not to maintain high balances on bankcard accounts.
Number of Department Store Accounts - Industry research shows that consumers who open more accounts with department stores experience more insurance losses. Our score considers the number of accounts that you have opened with department stores. These accounts can be currently opened or closed. To improve this aspect of your score, open new accounts only when needed, as once you have opened the account and regardless of whether you use it or not, your score will be impacted by this factor.
2) Initial rates were set for the 2015 with no experience repairing them. As insurers gain experience, they adjust rates. In July the Insurance Institute for Highway Safety reported that after a crash test it cost 26 percent more to repair the new aluminum F-150 than it did the steel-bodied predecessor. Insurers would look at that, and their own experience, in setting rates.
3) Terms like "full coverage" are meaningless. One has to compare line by line to see what exactly changed. In addition, each year states make changes to insurance requirements that can affect rates.
4) Each insurance company acts differently, so don't take one experience and think this is the norm.
I've never heard of returning a vehicle. If one walks away from auto loan, you'll take a huge credit hit and your insurance score will likely plummet.
12-15-2015, 08:03 AM
#17
Senior Member
I deleted my comment because after re-reading, I see in post#9 he states the $483 was a new policy on the new truck.
Last year I put my newly licenced son on the 150. It went from $500/6mo. to $1250/6mo. I can't wait to see what happens in a few months when son #2 gets his licence.
Last year I put my newly licenced son on the 150. It went from $500/6mo. to $1250/6mo. I can't wait to see what happens in a few months when son #2 gets his licence.
Having two male drivers of that young age is going to significantly impact your insurance costs for many years.
Note - IF they attend college at least 100 miles away from home (and don't have a vehicle with them), you can get a substantial discount.
12-15-2015, 09:36 AM
#19
Senior Member
(I pay around $525.00 per 6 months for mine. Geico. )
12-15-2015, 10:39 AM
#20
Senior Member
So, apparently the auto insurance industry adjusted their 'symbols' and they all point to doubling my insurance policy. It just jumped from $483 to $926 for 6 months. I freaked out and started getting other quotes, and so far they are $1290 and $1040 for the same coverage amounts.
My original insurance company told me they reclassified my vehicle as a 'high-performance vehicle'.
I have an F150 XLT 2.7 Ecoboost 4x2 SuperCab. My salesman at the dealership told me he had a brand new Mustang GT with full coverage for $300 for 6 months - and he is in his 20s.
I'm a 33 single male with a perfect driving record and credit. Never an accident, claim, ticket, default, no CC debit, etc. The truck is the only thing on the policy, and nothing has changed. An extra $1000/yr for insurance for the next several years was not exactly something I was prepared to take on all of the sudden. Health insurance rates went up in our state 35-40%, so people here must be really feeling the pinch. I am.
Great truck, but I don't like it enough to pay $1900-2500 insurance a year.
My original insurance company told me they reclassified my vehicle as a 'high-performance vehicle'.
I have an F150 XLT 2.7 Ecoboost 4x2 SuperCab. My salesman at the dealership told me he had a brand new Mustang GT with full coverage for $300 for 6 months - and he is in his 20s.
I'm a 33 single male with a perfect driving record and credit. Never an accident, claim, ticket, default, no CC debit, etc. The truck is the only thing on the policy, and nothing has changed. An extra $1000/yr for insurance for the next several years was not exactly something I was prepared to take on all of the sudden. Health insurance rates went up in our state 35-40%, so people here must be really feeling the pinch. I am.
Great truck, but I don't like it enough to pay $1900-2500 insurance a year.
