[Maynard]

It's a Kia - leave it overnight in a sketchy parking lot and it will take care of itself, no need to find one of the 10000 lakes.

But I'm confused (or it doesn't make any sense?) - how can you still owe $25k on a car that AFAIK had original msrp <30k? How much over value did you pay for it originally (or is Google wrong about the original msrp? - I'm seeing 23-29k). However, the 120k miles in a Kia mini-ute does explain your username....

[spazzyfry123]

I may have overlooked it, but have you shopped for insurance? Tripling your insurance is madness. Find someone else. The numbers you are throwing around will leave you, what... $20k in negative equity if you unload the car? Only thing I can say if you are adamant to unload the car, weigh out the tax advantages for trade in, how much more you can get privately, what your new interest rate will be against your current, etc.

I recently went to a broker and they were able to get me insurance significantly cheaper than what have been paying. I've been with State Farm for 20+ years with zero at fault accidents nor any speeding tickets with home owners, umbrella, yadda yadda. My auto insurance doubled what seemed like overnight, so I'm off to the next. 20+ years of patronage means nothing even with a spotless record.

[vreihen16]

.

[DrVenture]

Originally Posted by Maynard

It's a Kia - leave it overnight in a sketchy parking lot and it will take care of itself, no need to find one of the 10000 lakes.

But I'm confused (or it doesn't make any sense?) - how can you still owe $25k on a car that AFAIK had original msrp <30k? How much over value did you pay for it originally (or is Google wrong about the original msrp? - I'm seeing 23-29k). However, the 120k miles in a Kia mini-ute does explain your username....

Funny.

Driving the wheels of a car can get you to negative equity quickly. Or trading in a car that already has negative equity.

[IanH]

Originally Posted by DrVenture

Funny.

Driving the wheels of a car can get you to negative equity quickly. Or trading in a car that already has negative equity.

Not trying to shame OP but I feel like there has to be negative equity rolled into the Kia for the loan balance to be around 20k on a 2021 car worth less than half that balance.

[DrVenture]

Agreed, and if he drives that much, it is likely that his last trade-in was already underwater. Of course the big increase in insurance is a separate factor. I am baffled why insurance is going up so much for people with good driving records. But, 30K miles a year might be part of it. My cars are under 5000 miles annually at this point. When I was doing 18,000 miles annually it was spread across two different vehicles.

[DrVenture]

Originally Posted by spazzyfry123

I may have overlooked it, but have you shopped for insurance? Tripling your insurance is madness. Find someone else. The numbers you are throwing around will leave you, what... $20k in negative equity if you unload the car? Only thing I can say if you are adamant to unload the car, weigh out the tax advantages for trade in, how much more you can get privately, what your new interest rate will be against your current, etc.

I recently went to a broker and they were able to get me insurance significantly cheaper than what have been paying. I've been with State Farm for 20+ years with zero at fault accidents nor any speeding tickets with home owners, umbrella, yadda yadda. My auto insurance doubled what seemed like overnight, so I'm off to the next. 20+ years of patronage means nothing even with a spotless record.

Certainly not what I would expect. That just is not right.

[spazzyfry123]

Originally Posted by DrVenture

Certainly not what I would expect. That just is not right.

I’m not saying we have the Taj Mahal, but we designed/built a home we took the keys of a little under a year ago. It’s nice for what it is. When I broached the question as to how in less than three months of auto insurance payments I’ve exceeded my annual home owner’s insurance, my agent just replied “your house doesn’t move.” Wrong answer. Sent me to the moon. It wasn’t too long ago it would take 6-7 months before that would happen with the same coverage.newest vehicle we have is almost 10 years old for crying out loud.

Sorry for the rant. I’ve been in orbit for a couple weeks.

[MJBO]

None of those numbers seem to go together.

$6600/yr to insure a car that was ~$25k new, that after four years you owe $25k on, that's now worth basically the same as the yearly premium??

[MaxVO2]

Originally Posted by MJBO

None of those numbers seem to go together.

$6600/yr to insure a car that was ~$25k new, that after four years you owe $25k on, that's now worth basically the same as the yearly premium??

****Yea, that makes no sense unless he had some horrid accident where he ran over a flock of seagulls (the rock group, not literally a flock of seagulls…), and tried to fly off but was caught by some men at work.

The Police would have gotten involved at that point and no question he would have felt a sting from the entire incident!

Cars…. Ric Ocasek weeps.

[iminhell1]

Originally Posted by afadeev

My guess is that OP is <25 y.o., thus the exorbitant insurance premiums.

Nope. I'm 45. LOL
And yes, credit is not so great.



So I found an alternative. There's a law in MN (probably most states) that says rates can not go up more than 25% in a 12 month year.
Progressives also has to submit rate data to the state for approval. And in the most recent I can find it claims their rates went down 2.8%.
This is that filing: https://filingaccess.serff.com/sfa/s...ngId=134320519

I haven't found the math formula for the table yet and I may not. But at least I can see the base number and can see that something in my policy is really F'd up.

I did file with the MN Dept of Commerce because the law I found about the 25% hike said to do that. They have 60 days, policy renews in 30. Work fast guys please.

[IanH]

Talk to an insurance broker ASAP.

Contracting directly with a company hasnt been a cheaper way to get insurance for like 15 years.

Get the absolute minimum coverage for the car. But it also sounds like you need gap coverage, which you can usually buy separate or with the insurance depending on the provider.

[Alpine300zhp]

Originally Posted by spazzyfry123

I’m not saying we have the Taj Mahal, but we designed/built a home we took the keys of a little under a year ago. It’s nice for what it is. When I broached the question as to how in less than three months of auto insurance payments I’ve exceeded my annual home owner’s insurance, my agent just replied “your house doesn’t move.” Wrong answer. Sent me to the moon. It wasn’t too long ago it would take 6-7 months before that would happen with the same coverage.newest vehicle we have is almost 10 years old for crying out loud.

Sorry for the rant. I’ve been in orbit for a couple weeks.

Hmm. Move to Florida and you won’t be asking your agent that question.

[DrVenture]

Originally Posted by iminhell1

Nope. I'm 45. LOL
And yes, credit is not so great.



So I found an alternative. There's a law in MN (probably most states) that says rates can not go up more than 25% in a 12 month year.
Progressives also has to submit rate data to the state for approval. And in the most recent I can find it claims their rates went down 2.8%.
This is that filing: https://filingaccess.serff.com/sfa/s...ngId=134320519

I haven't found the math formula for the table yet and I may not. But at least I can see the base number and can see that something in my policy is really F'd up.

I did file with the MN Dept of Commerce because the law I found about the 25% hike said to do that. They have 60 days, policy renews in 30. Work fast guys please.

Could be that 25% is an across-the-board average. Some go up, some go down, some go up a lot.

The company's internal policy may have shifted and they are looking to eliminate higher risk policies. They may be using your credit rating as a sign that you are in a higher risk group.

You definitely need to shop around. Any other high risk variables, beside 30,000 miles annually and bad credit? Live in a high theft, high traffic area? Do you drive for work, like delivery or such. Maybe they think those high miles suggest you are driving for Uber?

[nyalpine90]

[zx10guy]

Look up videos on Youtube by this guy:

yusuf benallal

https://www.youtube.com/@RideWithYusufb

He's in car sales and provides a lot of insight on how you can work deals when there are less than optimal situations. One thing I never thought of that he's proposed to make something work is to use new car incentives on leasing to absorb any negative equity on a car being traded in. He's upfront and honest with the callers he takes whether he can help, provide alternative car options from what they were originally considering, or that it's better for them to hunker down and pay down their current car. He also provides one on one consulting to give advice or negotiate car deals on your behalf.

As to selling your car yourself, it's not going to happen without you being able to pay off the negative equity plus the proceeds from the sale to get title in hand.

[2000cs]

Just saw this and it shocked me because I haven’t bought a new car since 2018 and always pay for it up front. I learned a long time ago, and struggled to implement it then, that it is best to have the money for a car up front, buy used, and hold for a long time (or a lot of miles). It is hard to get ahead of the payments because you have to save for the next car at the same time you’re paying off the current one, but so worth it once you get there.

[BMWCCA1]

Your trade has a value that won't change with the car you buy. Your discount or difference may change but be smart enough to separate your trade value from the cost of what you're purchasing and leave them as two separate transactions. That way you can compare your trade value across CarMax, CarGuru, etc., or from dealer to dealer. Do your homework and legwork. Don't get caught twice!

[MaxVO2]

Originally Posted by BMWCCA1

Your trade has a value that won't change with the car you buy. Your discount or difference may change but be smart enough to separate your trade value from the cost of what you're purchasing and leave them as two separate transactions. That way you can compare your trade value across CarMax, CarGuru, etc., or from dealer to dealer. Do your homework and legwork. Don't get caught twice!

****The above is really good advice. Follow it.

[Mosaud1998]

Did you get GAP insurance when you bought the car? If so, just slam it into a barrier.

[Mason Hatcher]

Originally Posted by iminhell1

Nope. I'm 45. LOL
And yes, credit is not so great.



So I found an alternative. There's a law in MN (probably most states) that says rates can not go up more than 25% in a 12 month year.
Progressives also has to submit rate data to the state for approval. And in the most recent I can find it claims their rates went down 2.8%.
This is that filing: https://filingaccess.serff.com/sfa/s...ngId=134320519

I haven't found the math formula for the table yet and I may not. But at least I can see the base number and can see that something in my policy is really F'd up.

I did file with the MN Dept of Commerce because the law I found about the 25% hike said to do that. They have 60 days, policy renews in 30. Work fast guys please.

Here is what you need. This young lady found herself in the same situation.