I understand car insurance prices differ on location and identity/driving record/claims, but how about the actual vehicle? I would obviously conclude that a Corolla is a lower insurance rate compared to a Lamborghini but what about comparing insurance rates between a Rav4, a Sienna and a Tacoma. Sure they are different vehicles at different prices (base RAV 4 and base Tacoma not too far off) but how big of a difference are the insurance premiums. Do pickups or fast cars or any other type have a disproportionate insurance premium compared to other models. Anyone know the averages or have any insight?
Part of the calculation is simply that companies experience with that car. Sometimes there is no apparent reason for insurance rates.
What do you mean by their experience? Like how affordable repairs would cost?
That and the frequency of claims against those cars as they would also be looking at how often their policy holders make claims against those cars.
According to Consumer Reports, in all states other than California, your credit rating has a huge effect on your insurance rates - even more than a DUI conviction.
Are you saying the specific type or model of a vehicle is irrelevent?
Of course not. I'm saying that there are other factors, some not obvious - age, driving record, marital status, number of accidents, location, and ... credit rating.
It may be different down there but here in Canada your credit rating doesn't have a huge impact on your rates, only a minor one. Also, they have to get your permission to use it as a factor.
I don’t know the actually calculus of insurance rates, but it do know it has something to do with how much the car is worth, the probability of the driver/car getting into an accident. That’s why insurance is so high for young people because many of them drive stupidly, which affects all the other young people. And the probability of a sports car getting into an accident is higher since people in sports cars usually drive fast and like assholes. Not saying this is everyone, but a select few ruin it for everyone else.
That's helpful. I'll only ever buy a cross over, a minivan or a pick up and never a performance car
I don't think anyone really knows the actual calculous.
I'm not an insurance risk analyst either, but I would guess premiums are based on historical figures of how much an insurance company has paid out (risk factor) according to geographical location, driver experience + history, car model and value.
I wonder what insurance companies think of Toyota and the kind of people that buy toyotas. Their experiences with toyotas
what they think is irrelevant, but I think the numbers will show that payouts for injuries involving Toyotas will be lower than average because they are generally safe (not counting airbag incidents) . And that payouts for write-offs will be higher than average (because they retain a higher market value).
I personally think the insurance companies (legalized extortionists) have a Voodo Witch Doctor in a back room somewhere figuring out how to charge as much as they possibly can and still be competetive.
It's true. He looks like this.
Thanks, Joe, GREAT stuff!
I live in Harris county (Near Houston) and I think Harris county is one of the highest insurance rates, I drive a 2017 sienna, my van is full coverage, my husband 97 ford ranger is not, We pay a little over $120 a month for insurance. We have multi-car discount and military discount (and I guess a few other discounts)
My mom has a 2007 sienna and pays less than $100 a month (I think it's more than $75 but not sure of exact amount) She is older so she has a low deductible (because she cannot afford a high one) and has road side assistance, we do not do RSA. Here RSA is a joke, you'll be waiting a few hours for someone to have time to come out! We are redneck, we'll get it taken care of!
Here, $120 for 2 vehicles, is dirty cheap.
The difference is not considerable. They take in account your driving record and health condition. Don't get tickets. They stay in your records at least 2 years. Insurance providers always want to charge you more. Your minor speeding tickets, even if everyone was doing 80 in 70 and you had to drive 80 to be in the flow, also count against you. They don't care if everyone else was doing 80 too and you were unlucky.
we have point system. You incur penalty points for every infraction. They do no affect insurance premiums. You pay driver risk premiums depending how many points you have. You have to pay them regardless whether you pay for insurance or even own a car.
I notice you have crazy high insurance rates there in U.S.
compared to .... ?
Compared to where I live. Members mention they pay hundred or more $$ a month. Annual insurance for my car is (everything covered) is only a little bit over 500€.
it depends on many things like location and vehicle. It could be less than $100