I was right. I pay more in insurance for a new car in NY, despite (i)being over 25 and (ii)having no accidents or tickets.
However, like Sua now, I went for a quite few years with no car, so my current insurance history is a little over two years old.
Which, BTW, is going to be $1470.00 per year compared to my $268.00 per year.
these figures are for the lowest limits of liability in NC. I think they are 25k / 50k. A new car, under lien, would require collision and / or comprehensive and would cost more. And yes you are right about the refund of the taxes. Under 8k and you don’t even have to file. But you should to get your money plus interest back. Oh wait…there is no interest. That only happens when I owe the government money that is rightfully thiers.
Are you sure about this? It seems to me that the IRS has a certain amount of time to get you your refund. I’m not sure what that time is, maybe 90 days. After that time elapses I think you are paid interest.
I think he means the interest they aren’t paying to use his money all year - if he pays $1000 of tax throughout the year, and the IRS pays back $1000 at the end of the year, he has effectively let them borrow the money for free.
Ouch, Sweet Willy. Is that figure for your son based on him having exclusive use of a car or occasional use of one of yours?
This thread prompted me to call me insurance company about my own son. He’ll be taking driver’s ed next year and will probably be getting his license in around 12 months – he’s 15 now. Anyway, my insurance company offers a good student discount (I plan to use this information as leverage in the ongoing homework-wars). For occasional use of one of our cars, insurance for Nick would run $1116 a year, without the good student discount. With the good student discount his insurance will cost $730 a year – a significant difference. There’s a discount for completing driver’s ed as well, but I didn’t get the figure for that. Maybe you need to shop around a little? I can’t imagine that the VA rates would be much more expensive than the NC rates – in fact, you are paying less (for your own insurance) than we do on any of our vehicles (we pay ~$300 for the 1986 Harley, ~$700 for the 2000 Jetta and ~$550 for the 1995 Windstar).
Jess
Yes Mr2001 , I am refering to the apparent borowing of his money for the year. I am currently paying interest and penalties for the $700 I owed from last years tax.
Jess , The $268 is the lower liability premium for my '85 RX7. I have a good driver discount and multiple vehicle discount. The premium for my '92 Trooper is slightly higher bringing the total premium to around $700 per year for both. (Allstate). The $1470 figure comes from my ex - step daughter whom I insured last year. She got her own car and I agreed to pay the first 6 months insurance. I shopped it around… and around…never heard anything about good student discount. Gieco and Allstate were the cheapest at $735 per term. The circumstances will be the same for my son. He will have his own car in his own name. The problem I have with putting him on my policy is that if he does get a ticket it will stick to me for three years. If he gets a ticket on his own policy he will have to find a way to pay it or give up driving priviledges.
>> My son is nearing the legal age to drive an automobile. He is a very safe and experienced driver.
>> The problem I have with putting him on my policy is that if he does get a ticket it will stick to me for three years.
Am I the only one to see some irony here? Sweet Willy you have gone to great lengths to convince us your son is such a safe driver that the insurance company should have no problem backing him to the tune of several hundred thousand dollars and yet you hesitate to put him on your own policy in case something untoward may happen which may raise your premium.
To those who complain about how mandatory and how expensive insurance is I would propose the following: Pass a law which says you can self insure if you deposit a guarantee with the State to the extent of your mandatory insurance coverage. Suppose your state requires you to have $100,000 in liability insurance. You deposit a guarantee (bank deposits, home mortgage, whatever) enough to cover that and which can only be released by the state after your period is over. If you are so confident your son is such a low risk, would you put your home on the line? If yes, then fine, no problem (just don’t whine if you lose your home). But if the answer is no, why do you think someone else would be willing to risk an equivalent amount?
Sailor ,
My son will have his own car and his own insurance policy. This will encourage him to be safe and to drive the speed limit. If he does get a speeding ticket ( and I grant that he very well may ) it will then be his responsibility to pay the insurance. OTOH, if he is on my policy a ticket will cause my insurance rates to rise even though I am not a bad driver.
Maybe because they stand to make a hefty profit from the overwhelming majority of young drivers that never file a claim?
Also Sailor,
Why would you think I should guarantee the full amount while insurance companies are required to post only a very small percentage of thier actual liability? The rest is subsidized by “re insurance facitlities” funded by your tax dollars and additonal premiums on your policy.
Sailor,
A lot of states do let you self-insure by putting up an (interest-free) bond for the minimum liability amount. Of course, tying up that much money is generally not a good idea, but you can do it.
Oh and Willy, of course the insurance companies are making a profit. If they didn’t make a profit, they’d go out of business and no one would be there to pay off your insurance claim. Complaining that they’ll make a profit off of your son (who you won’t even put on your own policy) if he doesn’t get in an accident is absurd - how would an insurance company function if it both lost money on people who make claims (like they currently do) and didn’t make any money on people who don’t make claims (like you propose)?