Car Insurance Question...

[where'smyturbo?]

So I am looking to buy an 03-04 WRX. I went to my credit union, figured out the financing for what would be wholesale. (my step dad is a dealer, so he could get me one a little over wholesale) Decided that the monthly would be well worth it, however I completely forgot about car insurance...

Will I definitely have to get full coverage on the vehicle if I take a loan out for it? Am I able to lie and say I'm buying it outright even if I am not in order to not get forced into full coverage? Is that considered fraud? If so, does anyone know of a company that offers a generally inexpensive full coverage car insurance? Or should I just forget about it?

thanks for any help you are able to provide...

[doug]

Yes, that is fraud. It is up to the credit union if they want full coverage or not. any other questions, let me know.

[DPancoast]

Doug is right. It's going to be up to the union who is giving you the money to tell you whether or not they are going to need full coverage on the car. I would take a guess and say that you will no ifs ands or buts. I would think that they may even contact your insurance company themselves or ask for documentation that shows you have full coverage.

Don't lie man, it's not worth it.

[twastheglow]

You will need full coverage because you technically won't own the car until it's paid off. Until then, the credit union owns it. They want THEIR property covered. You can lie all you want but it won't work. You can ask for just liability, but your CU will require proof of coverage. Even if you start with full coverage and lower it to liability later, your CU will be notified and they have the option of adding comp/collision on the vehicle through whomever they want and adding it into your loan. AND I CAN GUARANTEE you, it won't be as cheap as YOU can get the comp/collision for.

[where'smyturbo?]

Well I have 2 CUs I can go through, the one CU offered a one time fee of $210 that was some plan that if the car was stolen, or totalled or anything of the sort, that I wouldn't be required to pay the remainder of the loan. Seems a little too good to be true, but if I go through them I was going to get more into detail.

The other CU was offering me a lower rate, and another year... So I guess it all depends on what I get quoted for car insurance at this point. Thanks for answering my questions. I really appreciate the help.

[twastheglow]

Well I have 2 CUs I can go through, the one CU offered a one time fee of $210 that was some plan that if the car was stolen, or totalled or anything of the sort, that I wouldn't be required to pay the remainder of the loan. Seems a little too good to be true, but if I go through them I was going to get more into detail.

The other CU was offering me a lower rate, and another year... So I guess it all depends on what I get quoted for car insurance at this point. Thanks for answering my questions. I really appreciate the help.

That's just gap insurance. That means if you owe $20k for a car that's worth $15k and you total it out, your insurance company is going to pay you the book value...$15k. They you'll still owe the bank $5k for something you don't own. Gap insurance means you don't have to worry about that $5k.

[twastheglow]

If you're getting the car for significantly less than book value, don't worry about getting gap insurance.

[MissDSM]

Around how much do you pay now...oooor what do you consider to be a lot? Full coverage is def worth it considering how much you'd lose if you wrecked your car or even totaled it. Idk what your driving record is like and all that, but I just quoted an 05 STi on my progressive account and it's $215 for the lowest "full" coverage, which is amazing considering my 00 s2k was $310 a month. Geico was $330 for the STi and Allstate was 350! Statefarm tends to have good rates but its a pain in the ass to get a quote on their website, or at least it used to be. Id try progressive, geico and statefarm, you could even try esurance or whatever it's called.
I can't see an 03 wrx being too ridiculous for full coverage if you have a decent record. Plus you can lower the cost by choosing the highest deductible for cemprehensive and collision.

[doug]

I would think that they may even contact your insurance company themselves or ask for documentation that shows you have full coverage.

Yeah.. that too. I get people asking me for certificates all day, lol.

[where'smyturbo?]

E-surance quoted me 250ish with the highest deductables. Everywhere else was 300+ which I might as well not bother with.

My driving record is clear as of april 7th, so my rates might change after that date i'm assuming. The only issue really is that I will already be paying 235/mo for the car note, and I don't want to pay more than 200-250 in insurance if i don't have to.

[twastheglow]

E-surance quoted me 250ish with the highest deductables. Everywhere else was 300+ which I might as well not bother with.

My driving record is clear as of april 7th, so my rates might change after that date i'm assuming. The only issue really is that I will already be paying 235/mo for the car note, and I don't want to pay more than 200-250 in insurance if i don't have to.

Wait until after the 7th.

[doug]

Exactly.. clean records FTW. :)

[MissDSM]

Yeah, my insurance went down $30 a month after my stop sign ticket cleared, and that was just a 2pt ticket.

Yet I still dont understand why an 05 STi is cheaper to insure than an 03 wrx

[russiankid]

It would be a wise decision to have full coverage. One reason is the car is fairly new. If you were to get into an accident and its your fault, liability would cover the other person but not you. Therefore, you will be paying out of your pocket to fix your car.

[where'smyturbo?]

Well I know that much, lol... hence why I will be quote shopping as soon as my record is clear.

[russiankid]

Oh sorry, just trying to help out.:o