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Insurance Premium Variables

Old 05-Jun-2009, 05:32 AM
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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?
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Old 05-Jun-2009, 09:06 AM
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Old 05-Jun-2009, 09:23 AM
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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)
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Old 05-Jun-2009, 01:09 PM
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Originally Posted by bengali548 View Post
4 door is actually more expensive due to the fact its more expensive to fix (due to 2 extra doors)
That is if the model (ie Civic) is built in 2 door and 4 door. If the model was built with only 2 doors (ie Prelude), then it's labeled as a sports car.
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Old 05-Jun-2009, 01:22 PM
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Originally Posted by Trybal View Post
That is if the model (ie Civic) is built in 2 door and 4 door. If the model was built with only 2 doors (ie Prelude), then it's labeled as a sports car.
never knew that lol
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Old 06-Jun-2009, 11:32 AM
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Originally Posted by bengali548 View Post
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)
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Old 06-Jun-2009, 11:47 AM
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Miss statefarm can clean up my post
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Old 06-Jun-2009, 11:50 AM
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you'll whole post made me lol

good attempt in explaining things though BUT you were ever so wrong
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Old 06-Jun-2009, 12:01 PM
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I wasn't THAT wrong I got the basic jist down

Btw always tell your bro you got 4 winter tires and u park in a private garage
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Old 06-Jun-2009, 01:39 PM
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Originally Posted by bengali548 View Post
I wasn't THAT wrong I got the basic jist down

Btw always tell your bro you got 4 winter tires and u park in a private garage

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.
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Old 06-Jun-2009, 09:26 PM
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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
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Old 07-Jun-2009, 09:14 AM
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Originally Posted by miss_jess View Post
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

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 ...
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Old 07-Jun-2009, 09:59 AM
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Originally Posted by miss_jess View Post
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
That would be the C81 book from the IIC I believe.

Pat.
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Old 07-Jun-2009, 11:23 AM
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Originally Posted by rick10 View Post
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 ...
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.
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Old 07-Jun-2009, 11:36 AM
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Originally Posted by FiveO View Post
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.

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
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Old 07-Jun-2009, 01:52 PM
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Originally Posted by rick10 View Post
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

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. "
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