Insurance Premium Variables
05-Jun-2009, 05:32 AM
#1
Member
Thread Starter
Join Date: May 2009
Location: Etobicoke / Guelph
Posts: 69
Insurance Premium Variables
Since I know there are people on this forum that work for insurance companies I thought I'd ask this out of curiousity. I've heard that car colour and number of doors plays a part in the premium you get. Is it true you'll be paying more for a red car than black car? Or a coupe instead of a sedan?
05-Jun-2009, 09:06 AM
#2
Senior Member
Join Date: Jun 2008
Location: Ontario
Posts: 643
05-Jun-2009, 09:23 AM
#3
Senior Member
Join Date: Jul 2008
Posts: 1,616
think about it like this
the insurance company iare your bros and your premiums are affected by how tight you and your bros are
now your bros dont know you that well but hes gunna lend you some money incase you get into an accident so if your riding full stock think about how much your "bro" would end up paying if you got into an accident
so colour doesnt matter if ANYTHING red is more expensive because its the hardest colour to make but my premiums havent changed with a different colour car
4 door is actually more expensive due to the fact its more expensive to fix (due to 2 extra doors)
the insurance company iare your bros and your premiums are affected by how tight you and your bros are
now your bros dont know you that well but hes gunna lend you some money incase you get into an accident so if your riding full stock think about how much your "bro" would end up paying if you got into an accident
so colour doesnt matter if ANYTHING red is more expensive because its the hardest colour to make but my premiums havent changed with a different colour car
4 door is actually more expensive due to the fact its more expensive to fix (due to 2 extra doors)
05-Jun-2009, 01:09 PM
#4
Senior Member
Join Date: Dec 2007
Location: Parry Sound
Posts: 1,986
06-Jun-2009, 11:32 AM
#6
think about it like this
the insurance company iare your bros and your premiums are affected by how tight you and your bros are
now your bros dont know you that well but hes gunna lend you some money incase you get into an accident so if your riding full stock think about how much your "bro" would end up paying if you got into an accident
so colour doesnt matter if ANYTHING red is more expensive because its the hardest colour to make but my premiums havent changed with a different colour car
4 door is actually more expensive due to the fact its more expensive to fix (due to 2 extra doors)
the insurance company iare your bros and your premiums are affected by how tight you and your bros are
now your bros dont know you that well but hes gunna lend you some money incase you get into an accident so if your riding full stock think about how much your "bro" would end up paying if you got into an accident
so colour doesnt matter if ANYTHING red is more expensive because its the hardest colour to make but my premiums havent changed with a different colour car
4 door is actually more expensive due to the fact its more expensive to fix (due to 2 extra doors)
06-Jun-2009, 01:39 PM
#10
Senior Member
Join Date: Feb 2008
Posts: 494
Yes, you are that wrong.
Colour makes no difference for insurance rates unless you subscribe to the theory that red or yellow cars get more tickets than silver or green cars, thus driving up insurance rates through the back door of ticket surcharges.
Four doors vs two doors also makes no difference, at least as far as cost to repair damage goes.
However, the four door version of the same car will often enjoy lower rates than the two door version of the same car simply because of the types of people who tend to buy either one.
Four door cars tend to attract drivers with need for space to carry a family, while two door cars tend to attract people looking for a "sporty" ride. People in "family" cars tend to drive more carefully and take fewer risks than people in "sporty" cars, and tend to have fewer crashes per km travelled.
Even when people in "family" cars do crash, as a group their crashes tend to be less serious and tend to have lower vehicle repair cost and medical expenses arising out of those crashes. As a result, cars perceived to be more "family"-oriented, such as many four-doors, tend to have lower insurance rates.
That said, the biggest factor affecting your basic insurance rates is not so much the cost of repair for a given car after a crash, but how likely a crash in that car is likely to kill you or put you in the hospital with serious injuries. This is where the early to late 90s Hondas really lose out. In part because of the car's construction, and in part because of the driving habits of the drivers who tended to buy them, they were far more likely to kill and injure people than most other cars on the market.
06-Jun-2009, 09:26 PM
#11
how premiums are calculated
1) age, gender, marital status
2) driving experience
3) driving record
4) other regular drivers
5) territory and distance driven annually
6) vehicle usage
7) vehicle description
8) coverage
For vehicle description - year, make, model and serial number. they indicated the value of the vehicle and the type of body. Giving clues as to possible usage and loss potentials. High value sports cars are prone to thefts. High value vehicles of any type usually are more expensive to repair. Size of motor will have a bearing on how the vehicle will be used and its attraction to certain types of drivers
maybe that sheds a light on how insurance works and how premiums are calculated... thats right out of the insurance books
1) age, gender, marital status
2) driving experience
3) driving record
4) other regular drivers
5) territory and distance driven annually
6) vehicle usage
7) vehicle description
8) coverage
For vehicle description - year, make, model and serial number. they indicated the value of the vehicle and the type of body. Giving clues as to possible usage and loss potentials. High value sports cars are prone to thefts. High value vehicles of any type usually are more expensive to repair. Size of motor will have a bearing on how the vehicle will be used and its attraction to certain types of drivers
maybe that sheds a light on how insurance works and how premiums are calculated... thats right out of the insurance books
07-Jun-2009, 09:14 AM
#12
Senior Member
Join Date: Jan 2008
Location: Mississauga
Posts: 1,672
how premiums are calculated
1) age, gender, marital status
2) driving experience
3) driving record
4) other regular drivers
5) territory and distance driven annually
6) vehicle usage
7) vehicle description
8) coverage
For vehicle description - year, make, model and serial number. they indicated the value of the vehicle and the type of body. Giving clues as to possible usage and loss potentials. High value sports cars are prone to thefts. High value vehicles of any type usually are more expensive to repair. Size of motor will have a bearing on how the vehicle will be used and its attraction to certain types of drivers
maybe that sheds a light on how insurance works and how premiums are calculated... thats right out of the insurance books
1) age, gender, marital status
2) driving experience
3) driving record
4) other regular drivers
5) territory and distance driven annually
6) vehicle usage
7) vehicle description
8) coverage
For vehicle description - year, make, model and serial number. they indicated the value of the vehicle and the type of body. Giving clues as to possible usage and loss potentials. High value sports cars are prone to thefts. High value vehicles of any type usually are more expensive to repair. Size of motor will have a bearing on how the vehicle will be used and its attraction to certain types of drivers
maybe that sheds a light on how insurance works and how premiums are calculated... thats right out of the insurance books
agree
however you are forgetting that different insurance companies base their quotes in different order (specially the top 3 you mentioned)... Some are high risk driver oriented, others are age oriented, etc ...
07-Jun-2009, 09:59 AM
#13
Member
Join Date: May 2009
Location: Niagara Region
Posts: 63
how premiums are calculated
1) age, gender, marital status
2) driving experience
3) driving record
4) other regular drivers
5) territory and distance driven annually
6) vehicle usage
7) vehicle description
8) coverage
For vehicle description - year, make, model and serial number. they indicated the value of the vehicle and the type of body. Giving clues as to possible usage and loss potentials. High value sports cars are prone to thefts. High value vehicles of any type usually are more expensive to repair. Size of motor will have a bearing on how the vehicle will be used and its attraction to certain types of drivers
maybe that sheds a light on how insurance works and how premiums are calculated... thats right out of the insurance books
1) age, gender, marital status
2) driving experience
3) driving record
4) other regular drivers
5) territory and distance driven annually
6) vehicle usage
7) vehicle description
8) coverage
For vehicle description - year, make, model and serial number. they indicated the value of the vehicle and the type of body. Giving clues as to possible usage and loss potentials. High value sports cars are prone to thefts. High value vehicles of any type usually are more expensive to repair. Size of motor will have a bearing on how the vehicle will be used and its attraction to certain types of drivers
maybe that sheds a light on how insurance works and how premiums are calculated... thats right out of the insurance books
Pat.
07-Jun-2009, 11:23 AM
#14
Senior Member
Join Date: Feb 2008
Posts: 494
While all this is true, the OP's original question focused solely on the variables of car colour and body type, and their effect on insurance rates for a given driver.
07-Jun-2009, 11:36 AM
#15
Senior Member
Join Date: Jan 2008
Location: Mississauga
Posts: 1,672
and that was my point... I had 2-3 insurance companies ask me for the colour of my car . When asked if it would matter their response was yes. While most dont ask me for that when quoting a price ....
Same goes for little things some insurance will ask you and others wont
winter tires
indoor parking
anti theft system
CAA
Mods
Colour
Some insurance companies take into consideration those things to reduce your premiums while others do not take those into consideration
07-Jun-2009, 01:52 PM
#16
Senior Member
Join Date: Feb 2008
Posts: 494
and that was my point... I had 2-3 insurance companies ask me for the colour of my car . When asked if it would matter their response was yes. While most dont ask me for that when quoting a price ....
Same goes for little things some insurance will ask you and others wont
winter tires
indoor parking
anti theft system
CAA
Mods
Colour
Some insurance companies take into consideration those things to reduce your premiums while others do not take those into consideration
Same goes for little things some insurance will ask you and others wont
winter tires
indoor parking
anti theft system
CAA
Mods
Colour
Some insurance companies take into consideration those things to reduce your premiums while others do not take those into consideration
My insurance company also asked me for the colours of my vehicles, but only after I had already been quoted a rate. They wanted to know for vehicle identification purposes together with the make, model, and VIN info.
From Car colour and your auto insurance - Yahoo! Finance, courtesy of Kanetix insurance
"When you bought your car, did the colour of it matter to you? Did you pick the colour for reasons other than you simply liked it? If you picked the colour of your car because you believed it would affect the cost of insurance you pay, you are not alone. In fact, according to the Insurance Bureau of Canada 40 per cent of Canadians believe the colour of their car affects their car insurance rate.
It’s not surprising really that a good chunk of us believe that car colour affects insurance rates when a simple online search about car colours displays a plethora of sites and studies that suggest, for example, that:
• Black cars are more likely to be involved in a crash.
• White cars are less likely to be involved in a crash.
• Red cars are more likely to be ticketed for moving violations.
• Black cars are more likely to be stolen.
Based on what you can easily find online, is it any wonder that 40 per cent of Canadians are mistaken? Whether the sites and studies are true or not, the fact remains that car colour does not affect the car insurance rate you pay; the insurance rate for a particular make and model of car will be the same regardless, whether it is black, red, or white. "
It’s not surprising really that a good chunk of us believe that car colour affects insurance rates when a simple online search about car colours displays a plethora of sites and studies that suggest, for example, that:
• Black cars are more likely to be involved in a crash.
• White cars are less likely to be involved in a crash.
• Red cars are more likely to be ticketed for moving violations.
• Black cars are more likely to be stolen.
Based on what you can easily find online, is it any wonder that 40 per cent of Canadians are mistaken? Whether the sites and studies are true or not, the fact remains that car colour does not affect the car insurance rate you pay; the insurance rate for a particular make and model of car will be the same regardless, whether it is black, red, or white. "
Thread
Thread Starter
Forum
Replies
Last Post
imported_kingrukus
Traffic tickets, accidents, insurance
6
11-Jul-2004 04:28 PM
