Why is my insurance for a 2021 Elantra so high… any advice?

Seeking Help
1

This summer, my 2001 Honda Civic had its brakes fail and the engine overheated in the same week. I decided it was time for a newer car and got a used 2021 Hyundai Elantra through a dealership in Jersey.

What I didn’t realise was how insanely expensive the insurance would be. The dealership found the cheapest option for me, which is $548.14 a month with State Farm. They explained it’s because I’m a new driver (licensed in October 2022) with a low credit score (670). I get that, but $548 feels ridiculous when my friends with newer cars pay around $200.

I’m also paying $537 a month for the car itself. That’s over $1,000 a month, and I’m drowning. I make $62,000 before taxes, and while my job mentioned a raise in December, they’ve made empty promises before, so I’m not counting on it. I love the car’s safety features and don’t want to part with it, but these payments are overwhelming.

Progressive doesn’t cover Hyundais, and Geico’s rates were even higher. Is there anything I can do to bring these costs down? Would love some advice.

2

Did you just get your license? Or do you have a lot of tickets?

3

Yvette said:
Did you just get your license? Or do you have a lot of tickets?

I have a Hyundai and use Progressive. My full coverage is about $200 a month for a 2017 model.

4

Yvette said:
Did you just get your license? Or do you have a lot of tickets?

I got my license in 2022, so yeah, it’s pretty recent. I’ve had a few tickets, mostly parking ones since I’m from the NYC area.

5

@Barack
Why not just use the train instead? It would save you a lot of money. Do you really need a car there?

6

Yvette said:
@Barack
Why not just use the train instead? It would save you a lot of money. Do you really need a car there?

I would if I could, but I live on Staten Island, so public transport options are limited, and parking can still be a hassle.

7

@Barack
Ah, I see. Staten Island is different. If you need a car, maybe try looking into Progressive. I have them, though my car is push-to-start. Not sure if that matters.

8

@Barack
Being a newer driver explains the high rate. My first car insurance was $450/month with a budget insurer. After a few months, I switched to Esurance for half the cost and now pay $110/month with Progressive. Tickets also drive up rates, so avoid them if you can.

9

Yvette said:
Did you just get your license? Or do you have a lot of tickets?

Sorry, missed that you’re a new driver. That and having a newer car could explain it.

10

Bundle your insurance to get a discount. Add renters insurance if you rent, or even life insurance. It can bring the cost down.

11

I’m in a similar situation. My car payment is $400, and my insurance is over $300/month with State Farm. I’ve shopped around, but Progressive was more expensive. They said it’s due to my age, zip code, and the Elantra’s safety features making repairs costly. Hyundais also have a high theft rate, but I thought getting a newer model would make insurance cheaper.

12

State Farm is so expensive. Check out Geico or Progressive. I pay $800 for six months. $500 for one month sounds crazy.

13

Amelia said:
State Farm is so expensive. Check out Geico or Progressive. I pay $800 for six months. $500 for one month sounds crazy.

Which insurance do you use? Progressive doesn’t cover Hyundais, unfortunately.

14

@Barack
Here’s an article explaining it: https://www.thezebra.com/resources/car-insurance/insurers-dropping-kia-and-hyundai/

15

Really? Is that only in New York? I have Progressive, and it covers my car.

16

Amelia said:
Really? Is that only in New York? I have Progressive, and it covers my car.

It depends on the model year. Google says 2021 and older Hyundais aren’t covered.

17

That’s wild. I must’ve gotten lucky or been grandfathered in. I started with a 2022 Hyundai and upgraded to a 2024 this summer, sticking with Progressive. Might be worth checking again.

18

Amelia said:
That’s wild. I must’ve gotten lucky or been grandfathered in. I started with a 2022 Hyundai and upgraded to a 2024 this summer, sticking with Progressive. Might be worth checking again.

From 2022 onwards, they fixed the security issues that made Hyundais easier to steal. Models like yours are good now.

19

I used to work in insurance and quoted rates for people all the time. High rates can be due to:

  • Tickets or violations
  • Being a male under 25
  • Car make, model, and year
  • If the car is financed
  • Previous accidents on the car
  • Low credit score
  • Being a new driver
  • Type of liability coverage

Ask about discounts for safety features or good grades (if you’re in school). Some of these can lower your premiums.