In the market for a new car, looking at my options with Acura TLX. I liked the car and can pay the monthly finance rates but insurance rates seem to be pretty high.

I live in Boston, MA and I obviously expect things to cost a bit above average but I was quoted a insurance rate of $600/month on my car to be in compliance with MA state laws. That just looked too exorbitant to me. Its been same with Progressive and Geico. I am shopping for diff. policies from a different vendor but just wanted to take an opinion from the group.

I am 27Y old male, moved from India 5 years ago. I have my Indian license for last 8 years. Got my US license in 2015. Been driving rental cars since then on a regular basis with no ticket/accident.

I am also thinking if leasing a car for 3 months can help the rates to go down. Please advice

  • 2
    If you're asking for different insurance providers that is off-topic as it becomes stale. – D Stanley Apr 29 '17 at 14:49
  • Your answer below is what I am looking for. Thanks for the input, will lok for some more!! – Abhi Apr 29 '17 at 14:57

Auto insurance is a highly personalized item, so depending on your driving record and other factors, $600 a month for full coverage may be as good as you can get. Look at the premium for each category, and consider raising the deductible if you have some savings that could be used in the event that you have a claim.

Also, you're not only buying insurance to cover the other person's damage and medical expenses, you're paying for insurance for your car. Brand-new cars are more expensive to replace (and thus insure) than used cars.

Leasing is effectively renting a car for a long period of time. While the payments are less, when the lease expires you're going to have to decide whether to give up the car or buying it, usually at a price much higher than market value.

I'm glad you discovered that the insurance would break your budget before it's too late. My suggestion would be to look for a 1-2 year old car that's less expensive to buy and to insure.

  • Agree. But I can't help but wonder if the premium is mostly liability. A $25000 car can only be totaled, but drive into a crowded group and the minimum liability $300k (?) is gone fast. – JTP - Apologise to Monica Apr 29 '17 at 15:00
  • "Look at the premium for each category, and consider raising the deductible if you have some savings that could be used in the event that you have a claim." - Do you mean insurance has multiple categories to it. I can look into raising deductible but none of the vendors have me that detailed quote – Abhi Apr 29 '17 at 15:01
  • @Abhi Yes, you can change the criteria of the insurance policy to meet your needs. Also, in most states you are only required to have Liability insurance (if you hit someone else). That is about half the price of getting full comprehensive and collision coverage (which covers you for everything). The more coverage you get, the more you pay. That said though, $600 a month seems insanely high. I'm a male, mid 30's, clean record, driving a decent car, with full coverage; and my insurance is $155 per month. So I would say continue to shop around. – Keith Apr 29 '17 at 15:55
  • @Abhi You should have categories like Liability, Comprehensive, and Collision. Liability is required, the other two are required if you have a loan. Anything else is extra. Collision is for repairs due to a collision; comprehensive is for expenses due to something other than a collision (theft, vandalism, etc.). – D Stanley Apr 29 '17 at 16:24

$600 a month is high, but may be the best you can do. When I moved from UK to Canada my first insurance quote was $3000 a year, but that was 20 years ago and I was older than 27. The rates go down substantially after you have had a local license for a few years.

Best tips for minimising this:

  1. Buy a car cheap enough you can afford to replace it. Then get Third Party Only insurance.
  2. Buy the least sporty and cheapest car that will do the job.
  3. If you can get away without a car for every day, keep doing that. You can rent a car every weekend for the cost you are paying in insurance.

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