What Insurance Rates and Loan APR % is everyone getting ?

[SargeDiesel]

Has nothing to do with 'affording' it. Even if your loan rate was 5% your money would work harder for you in the market than sunk on the car. Same reason I still have a mortgage - do the math and after a certain amount of equity it makes zero sense to pay it off early.

Great insite ! Thank you !!!

Sponsored

 

[SargeDiesel]

Seriously, if having an extra $50-60k to invest is making a significant difference for you, then you shouldn't be buying a $50k vehicle in the first place. I guess 'affording' means something different to me. If you can reason owing money to a bank for a vehicle or a house, then that's fine. You'll never convince me to do it.

I'll bow out now and let this thread get back on track.

Thank you

 

[Deleted member 30519]

You better lock in a low rate now while you still can.

 

[NachoRuby]

2021 mojave paid in cash yearly premium full coverage with 300k liability is $1600 a year or 133 M/ in NY

NY insurance premiums are high!

That's why I don't worry about that because my insurance pays replacement cost - not the current market value of a used truck (but that's likely more than I paid for the truck anyway LOL)
In a normal year before covid my truck may be worth 40K but because of my policy, I'd get the money for a new truck, over 50K now. Gap is for if you trade while up-side-down or - if your insurance doesn't pay you replacement cost. Even if I got a loan I'd not need gap because insurance would pay me the new value, not depreciated value.

Yes, new vehicle replacement isn't offered in my area. I've heard of it. I remember the commercials, actually. But not an option here, even with a perfect driving record. So gap insurance is the next best thing.

 

[SargeDiesel]

Be careful with windshield replacement. I was multi-vehicle and house insured with Safeco, good rates and service, had the full deal, 11 years with them. No incidents, tickets, claims, etc.. I did have a couple windshields replaced though under that coverage. Then I move to a different state and need to update my insurance and since it is a new state the whole thing is rewritten by Safeco. They then raise my rates by $1000 a year due to the windshield claims.

So my theory is that I'd rather pay for a $1000 windshield once in a while than pay an annual $1000 increase for however long they decide is necessary. I moved insurers also.

All that said, insurance between people will be apples and oranges. I have increased coverages due to having college students and all that, so some people in this thread may be quoting minimum coverage values (25/15/25 kind of stuff) when people like me are 500/250/500 for property, medical and such.

Good insite... and yes apples & oranges... thread is just for information and friendly conversation...

 

[869 KPH]

You better lock in a low rate now while you still can.

This is great conceptually, but none of the lenders I spoke to would lock in a car loan rate for more than a few days, which makes no sense to do until my delivery is imminent. I'm all for it if you have suggestions, though.

 

[SargeDiesel]

That's why I don't worry about that because my insurance pays replacement cost - not the current market value of a used truck (but that's likely more than I paid for the truck anyway LOL)
In a normal year before covid my truck may be worth 40K but because of my policy, I'd get the money for a new truck, over 50K now. Gap is for if you trade while up-side-down or - if your insurance doesn't pay you replacement cost. Even if I got a loan I'd not need gap because insurance would pay me the new value, not depreciated value.

What "option" do you mention to your insurance co to see if they offer market value replacement ? Is a big cost increase on the policy ?

 

[SargeDiesel]

You better lock in a low rate now while you still can.

Done !

 

[SargeDiesel]

Oh yeah.... to answer the original question:

My credit union does the exact same thing as yours, @SargeDiesel - they won't quote a rate until I am about to take delivery. But they did tell me the best rate they have right now is 1.75%. I'll probably stretch to 72 and expect to end up somewhere around 2.5%.

Thanks for the info ! My bank did as yours and told me what the lowest and then the highest rate would be but it's a pretty large gap... I'm assuming with my credit and my history with them then I will get the lower rate. I believe they started at 2.2 and holy crap went all the way up to 17 something lol

 

[SargeDiesel]

That's why I don't worry about that because my insurance pays replacement cost - not the current market value of a used truck (but that's likely more than I paid for the truck anyway LOL)
In a normal year before covid my truck may be worth 40K but because of my policy, I'd get the money for a new truck, over 50K now. Gap is for if you trade while up-side-down or - if your insurance doesn't pay you replacement cost. Even if I got a loan I'd not need gap because insurance would pay me the new value, not depreciated value.

You mentioned age - yes, when young it's a bigger factor - you need that money to stay put and earn dividends, interest and gains. Mine is keeping up with my demands so it doesn't matter.
People have to figure their OWN situations - that's why these questions just don't make sense to me.
There will be as many answers (all of them correct) as there are people. And insurance - don't even think about comparing or thinking "how are they getting by so cheap" or "Why is theirs so expensive". It's like health insurance in a way - the exact same insurance, same carrier, same company, etc. I can name you 3 very different prices for the exact same stuff - based on your group. Similar for auto insurance - your coverage, limits, deductibles and other factors matter, but so does the state and location within that state, age, family status, do you bundle, how many vehicles and much more. Do you have FCW and ACC? That often matters as can trim level and other factors. Auto insurance is crazy tricky. I went around and around for weeks with the company my father's truck was covered by - a simple thing like wheelbase, towing package and other things made thousands of dollars difference in their payout. So, too, will those things matter in insurance costs.
(major companies have entire departments that study repair and replacement costs, risk factors related to gender, age, family status, location and more - I worked for PFG and one floor was nothing but staff working that area)

"People have to figure their OWN situations - that's why these questions just don't make sense to me.
There will be as many answers (all of them correct) as there are people. And insurance - don't even think about comparing"

Not really trying to directly compare everyone's answers, you are correct, it is an individual deal..... this was for my information and some friendly, incitetful conversation....

 

[ShadowsPapa]

What "option" do you mention to your insurance co to see if they offer market value replacement ? Is a big cost increase on the policy ?

Just ask the agent about replacement cost value.
Almost every company offers it - those TV ads make it sound like it's a big deal and only THEIR company has it - but that's not the case. I'm sure it's an added cost, but can't say how much.
I didn't realize it until I finally read one of our most recent policies - my agent included replacement cost on truck.
So I can't say how much difference it made because our agent is a guy I've been with since 1982 and he knows me, my vehicles, etc. and he just included it. (he knows us pretty well)

 

[steveorama]

It's always enjoyable to see the better insurance rates other states get for the same coverage. Texas has fairly high insurance, I think it's like 26% higher than the national average IIRC. But it's still good to shop around. Loyalty discounts aren't usually as good as new customer discounts. I just switched to Allstate after about 8 years with Progressive and saved almost half on my home and about a third on my auto policies.

I have multiple cars, house, and other discounts and I'm paying just under $430 for 6 months on mine. For comparison we pay $350 for the same coverage every 6 months on my wife's '19 Outback.

Financed for 1.99% @ 60 months through Wells Fargo, but only financed the difference of around $13k.

 

[SargeDiesel]

Just ask the agent about replacement cost value.
Almost every company offers it - those TV ads make it sound like it's a big deal and only THEIR company has it - but that's not the case. I'm sure it's an added cost, but can't say how much.
I didn't realize it until I finally read one of our most recent policies - my agent included replacement cost on truck.
So I can't say how much difference it made because our agent is a guy I've been with since 1982 and he knows me, my vehicles, etc. and he just included it. (he knows us pretty well)

S-Papa You seem really knowledgeable on the insurance subject maybe you can clear up GAP for me. I know you mentioned it in some of your answers... I just wanted to clarify my understanding of it. I thought gap was for if you totaled out your vehicle in an accident and you owed more money than the insurance was going to pay the gap would pay the difference between the two (bridging the GAP) is this how it works Or does it pay off the whole vehicle and get a check for market value ? In my case the vehicle after all discounts and rebates (almodt 8 grand of them whooo hoo !) It was approximately 60,000, but I am only looking at borrowing 20,000.... since I will already have + equity as soon as I purchase, I didn't think I needed the GAP... but I believe I can still add it if needed.

 

[steveorama]

S-Papa You seem really knowledgeable on the insurance subject maybe you can clear up GAP for me. I know you mentioned it in some of your answers... I just wanted to clarify my understanding of it. I thought gap was for if you totaled out your vehicle in an accident and you owed more money than the insurance was going to pay the gap would pay the difference between the two (bridging the GAP) is this how it works Or does it pay off the whole vehicle and get a check for market value ? In my case the vehicle after all discounts and rebates (almodt 8 grand of them whooo hoo !) It was approximately 60,000, but I am only looking at borrowing 20,000.... since I will already have + equity as soon as I purchase, I didn't think I needed the GAP... but I believe I can still add it if needed.

I know you directed it at SP, but gap insurance pays the "gap" as you stated. It's the difference between what you still owe and the market value. If you only financed 20k you don't need gap.

 

[JsnJcksn]

$1190 yearly for insurance with $1k deductible on collision in WV. Interest rate from June 2021 was 1.89 for 60 months.

Sponsored