Car insurance shock (Las Vegas: renter, loan, home)

NASHUA · 12-04-2007, 03:02 AM

I just moved out here from New Hampshire where I was paying about $45/month for coverage with Geico on a 98 Mercury Mystique. I just bought an '05 Hyundai Sonata this week (I no longer have the Mystique) and I've been researching auto insurance tonight. The quotes I'm getting for the same level of coverage I had in NH are about $120/month! I have had 1 speeding ticket in the last 3 years, no accidents. Is Vegas really that dangerous a place to drive that my premium would go up almost $1000 a year out here?? It just seems like a huge jump to me.

BobKovacs · 12-04-2007, 04:43 AM

Well, you've got two things working together against you:

- You bought a far newer car, so your premium is obviously going to be higher.
- You moved to Las Vegas, where, yes, the insurance premiums are pretty high relative to alot of places in the country.

jfkIII · 12-04-2007, 07:49 AM

The insurance industry is kind of like the casino industry...it's all about twisting statistics to lean in their own favor in order to make profits. Yes, you moved to an area where accidents are more prevalent, in part, due to the fact that the population is lot more dense in LV than it was in NH. That, and the fact that you have to protect the bank's interest in the new car (if you took a loan for it,) will increase yoor premiums greatly.

BobKovacs · 12-04-2007, 08:42 AM

It's not even a matter of the bank's interest in the new vs old car debate. With a '90 Mercury Mystique, all the insurance co would ever be at risk for is maybe $5k- any damage over that, and they'll just total the car and walk away. With an '05 Sonata, they could be looking at paying $10k or more in repairs before they total it, so they've got a greater risk for loss.

jfkIII · 12-04-2007, 10:21 AM

Here in NY we are required to take collision insurance if your car is financed, in order to protect the bank's interest. That, in itself, could account for more than 50% of the payment.

Matt121779 · 12-04-2007, 10:42 AM

Mine went through the roof when I moved out here. At the highest I was paying around 137.00 a month. No speeding or traffic violations since 1999! It has come down since then and I did a lot of shopping around to find a good rate. But it is still high. There are several factors in Las Vegas that cause the premiums to go up. One being the amount of stolen vehicles in this city. Another is a high percentage of illegal and uninsured drivers. Combine that with all of the red light runners, and traffic accidents and its a perfect recipe for high rates. Also, a lot of people move here from smaller communities where there rates would clearly be lower.

NASHUA · 12-04-2007, 12:05 PM

Thanks for the responses. For what it's worth, I own the car 100% so I guess it would be even higher if I'd taken out a loan. I'm going to do some more looking today.

BobKovacs · 12-04-2007, 12:15 PM

Quote:

Originally Posted by NASHUA

Thanks for the responses. For what it's worth, I own the car 100% so I guess it would be even higher if I'd taken out a loan. I'm going to do some more looking today.

I'd only be higher if you don't currently have collision insurance, which I'm hoping you do with such a new car. Otherwise, you'll be in for a rude awakening if you get into an accident and need to get your car repaired.

AA702 · 12-04-2007, 03:11 PM

I was one of the lucky ones that my car insurance actually went down! I moved from Silicon Valley and I was paying 2400 a year for my truck and honda( I was a renter there). Since I bought a home here in LV I get a discount of 20% from Allstate because I have my home owners through them. My registration is slightly higher here in LV by about 15%.

cjski21 · 12-04-2007, 06:50 PM

I'm paying 300 a month for two cars (both new) and that is less than it was in Detroit. Yes LV insurance is high. Geico told me it was because of the fact that this is a "true" 24 hour town and at any time of the day, someone is getting off of work and getting a drink.