car insurance logic ?

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You need to more specific in what Nissan compared to what Mazda model(s).

I owned a 95 Honda Civic fully insured and found the liability alone nearly the same as full coverage as my 2007 Acura MDX both used. Generally small cars have higher premiums due to accident rates due to typical owners.
 
Two years a go, my premium increased about $250. a year when I replaced an '08 Silverado with a '13 Scion XD. Low mileage pleasure use only. As I recall, most of the increase was on Collision coverage, even though the Silverado had a greater book value. A year earlier, I had the same increase when I replaced an '01 Intrigue with a '14 Scion XB. At least that one made some sense. I'm guessing that the driver demographics of Scions is not great, even as slow cars. They never became the youth market vehicle they proclaimed to be. Geezer status here.
 
I will hazard a guess that the overall population of drivers of the newer cars drive faster and a bit more recklessly than drivers of 15 year old cars, and to the degree that is true it will be in part reflected in the pricing.

Newer cars have more electronics and screens to distract drivers. Its more a function of frequency than severity in claim costs in this instance since as billt460 accurately states a cheap older car can cause just as much damage. Overall US claim frequencies have been on the rise the last few years.
 
Originally Posted By: billt460
Originally Posted By: grampi
What gets me about insurance companies is when they raise everyone's premiums in a given area because there have been more claims in that area. Shouldn't they be raising the premiums of only those who are filing the claims? Why make everyone pay more?


No, because they wouldn't be able to raise them enough to make up the difference. For example, after Hurricane Andrew destroyed the bulk of South Florida in 1992, (it wiped Homestead Florida completely off the map), and caused over $27 BILLION in damage. (Keep in mind that was $27 billion in 1992 dollars). If they only raised homeowners insurance to people who were effected by it, they would no longer be able to afford it.

So they raise everyone's rates unilaterally across the country. Remember, insurance involves the spreading of risk. So the more of that risk they can spread, the less per person it amounts to.

It's much the same with drunk drivers, and people who buy fast cars. If you've never driven drunk in your entire life, you're still paying for those who do. And a 65 year old with a perfect driving record who buys a ZR-1 Corvette, will still be saddled with a high premium. Because enough people with bad driving records will buy and wreck them more often.


Your explination shows why the insurance industry is nothing but a big scam. It's the only one I know of that has the means to ALWAYS make a profit. People paying for insurance are taking a risk that their premium will cost them less than a catastrophic loss would, so we opt to have insurance. Most of us will lose money on the deal in the long run. Insurance companies should assume the same risk in that they may have to lose money occasionally during times when claims are high. It's the nature of the business. Considering the amount of profits insurance companies make, they can afford to lose once in a while. This business of making customers pay to recoupe insurance company losses should not be allowed...
 
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Originally Posted By: Pew
Did your insurance at least lower your premium a few months ago? I know that State farm, Geico, and Progressive all lowered their premiums in Illinois earlier this year, I'm not sure who else.

Younger folks like to buy the Mazda 3, which also tend to result in more accidents for that specific car. IE: Honda Civics are stolen alot more than any other cars, so their insurance tends to be higher for what the car is worth.


It's rare to see rates go down. As a rule, insurance rates are much like taxes...they go up no problem, but they usually don't go down...
 
Originally Posted By: grampi
Your explination shows why the insurance industry is nothing but a big scam. It's the only one I know of that has the means to ALWAYS make a profit. People paying for insurance are taking a risk that their premium will cost them less than a catastrophic loss would, so we opt to have insurance. Most of us will lose money on the deal in the long run. Insurance companies should assume the same risk in that they may have to lose money occasionally during times when claims are high. It's the nature of business. Considering the amount of profits insurance companies make, they can afford to lose once in a while. This business of making customers pay to recoupe insurance company losses should not be allowed...


Insurance is insurance...

By your logic, if your house burns down three minutes after a hurricane hits the other side of the country, YOU are SOOL...but that's the nature of risk.

What's your view on Govt protection on deposits in banks ?
 
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Originally Posted By: Shannow
Originally Posted By: grampi
Your explination shows why the insurance industry is nothing but a big scam. It's the only one I know of that has the means to ALWAYS make a profit. People paying for insurance are taking a risk that their premium will cost them less than a catastrophic loss would, so we opt to have insurance. Most of us will lose money on the deal in the long run. Insurance companies should assume the same risk in that they may have to lose money occasionally during times when claims are high. It's the nature of business. Considering the amount of profits insurance companies make, they can afford to lose once in a while. This business of making customers pay to recoupe insurance company losses should not be allowed...


Insurance is insurance...

By your logic, if your house burns down three minutes after a hurricane hits the other side of the country, YOU are SOOL...but that's the nature of risk.

What's your view on Govt protection on deposits in banks ?


I don't understand your question. What would a hurricane on the other side of the country have to do with my house burning down?
 
Originally Posted By: grampi
Originally Posted By: Pew
Did your insurance at least lower your premium a few months ago? I know that State farm, Geico, and Progressive all lowered their premiums in Illinois earlier this year, I'm not sure who else.

Younger folks like to buy the Mazda 3, which also tend to result in more accidents for that specific car. IE: Honda Civics are stolen alot more than any other cars, so their insurance tends to be higher for what the car is worth.


It's rare to see rates go down. As a rule, insurance rates are much like taxes...they go up no problem, but they usually don't go down...


Yea, they did raise last year so I suppose them lowering the premiums really was more "they went back down to normal."
 
Originally Posted By: Pew
Originally Posted By: grampi
Originally Posted By: Pew
Did your insurance at least lower your premium a few months ago? I know that State farm, Geico, and Progressive all lowered their premiums in Illinois earlier this year, I'm not sure who else.

Younger folks like to buy the Mazda 3, which also tend to result in more accidents for that specific car. IE: Honda Civics are stolen alot more than any other cars, so their insurance tends to be higher for what the car is worth.


It's rare to see rates go down. As a rule, insurance rates are much like taxes...they go up no problem, but they usually don't go down...


Yea, they did raise last year so I suppose them lowering the premiums really was more "they went back down to normal."


They usually don't even do that...once they go up they usually stay up...
 
Originally Posted By: grampi
Originally Posted By: Shannow
Originally Posted By: grampi
Your explination shows why the insurance industry is nothing but a big scam. It's the only one I know of that has the means to ALWAYS make a profit. People paying for insurance are taking a risk that their premium will cost them less than a catastrophic loss would, so we opt to have insurance. Most of us will lose money on the deal in the long run. Insurance companies should assume the same risk in that they may have to lose money occasionally during times when claims are high. It's the nature of business. Considering the amount of profits insurance companies make, they can afford to lose once in a while. This business of making customers pay to recoupe insurance company losses should not be allowed...


Insurance is insurance...

By your logic, if your house burns down three minutes after a hurricane hits the other side of the country, YOU are SOOL...but that's the nature of risk.

What's your view on Govt protection on deposits in banks ?


I don't understand your question. What would a hurricane on the other side of the country have to do with my house burning down?


If the insurance company reaches the limits of its funds, as per your desire, due to a hurricane on the other side of the country, there could be no money to pay for your house...

You can't have it both ways
 
Originally Posted By: Shannow
Originally Posted By: grampi
Originally Posted By: Shannow
Originally Posted By: grampi
Your explination shows why the insurance industry is nothing but a big scam. It's the only one I know of that has the means to ALWAYS make a profit. People paying for insurance are taking a risk that their premium will cost them less than a catastrophic loss would, so we opt to have insurance. Most of us will lose money on the deal in the long run. Insurance companies should assume the same risk in that they may have to lose money occasionally during times when claims are high. It's the nature of business. Considering the amount of profits insurance companies make, they can afford to lose once in a while. This business of making customers pay to recoupe insurance company losses should not be allowed...


Insurance is insurance...

By your logic, if your house burns down three minutes after a hurricane hits the other side of the country, YOU are SOOL...but that's the nature of risk.

What's your view on Govt protection on deposits in banks ?


I don't understand your question. What would a hurricane on the other side of the country have to do with my house burning down?


If the insurance company reaches the limits of its funds, as per your desire, due to a hurricane on the other side of the country, there could be no money to pay for your house...

You can't have it both ways


"As per my desire?" All I am saying is no business should be able to guarantee their own profits on the backs of others...
 
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