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 Posted: Thu Aug 14, 2008 12:18 pm Post subject: Planning to buy a new car .. |
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| Hi guys I am actually planning to buy a new car .I wanted to know what features in my new car will affect my insurance premiums.I heard that if you buy a sports car or one which is likely to be stolen more it will increase the premiums .Is it true? |
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renditioner
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| Posted: Thu Aug 14, 2008 2:02 pm Post subject: |
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| Well yes, the premium would be _slightly_ higher on that type of vehicle but it's not like you really ever see what that increase is as it there is not a "high risk of theft" amount _added_ to the policy... it's just built into the price. If it's more likely that a carrier is going to pay a claim, the exposure is said to be greater so the price of the policy is higher. But this increase comes in the form of a higher cost for comprehensive coverage only. So I guess I have to back track a little on what I said above... you can slightly see this affect as the you can see just the cost of comprehensive coverage on your policy. Still, in the big picture, it probably won't amount to much as there are just too many other factors that change from vehicle to vehicle. Another example is how expensive it is to repair the vehicle. We really don't know that until it goes into a repair shop so how much of that increased comprehensive premium is because of the vehicle's high theft rate and how much is because it cost a lot to repair? You can't know for sure... you can only know that there is some slight increase on vehicles more likely to be stolen. |
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tcope
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| Posted: Thu Aug 14, 2008 5:14 pm Post subject: |
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| Thank you tcope for your reply .. I have to still clear myself of some doubts still .What you are saying is the premium will only increase only if I go for a comprehensive insurance coverage ?and that too it will be only a marginal increase and not something which is very appreciable from the regular normal insurance of some other normal vehicles ..? |
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renditioner
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| Posted: Thu Aug 14, 2008 7:09 pm Post subject: |
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| I could not have said it better myself. |
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tcope
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| Posted: Fri Aug 15, 2008 4:39 am Post subject: |
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Well, the insurers do assign some amount of risk to the make and model of the car, but that is not all. There are other factors more important than the type of the vehicle that determines the rate of the premium, like- the age and gender of the driver, his/her driving history, overall market for insurance, density of vehicle in the area, etc.
~jeremy |
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JeremyHolter
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| Posted: Fri Aug 15, 2008 8:50 am Post subject: |
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Hi there..
See, there are some chances that you'd get a fair amount of discount for your premiums when you already have a car covered with the same insurer. The carrier also comes to believe that your chances of an accident with the new car gets reduced since you're gonna use both cars simultaneously.
Insurers would judge your car also in terms of its safety equipments, since they'd need to determine how much it is accessible to the thieves. So the facilities & the design of your car are important deciding factors.
We have often discussed about the 'distance covered by cars' as an important factor towards deciding the rate. I say this because more distance the car covers, more likely it is gonna get damaged by another car.
Also they would count upon the location of your car, since they gotta offer you more rates in case you're using your car within a large city. This is since the number of car hazards & burglaries are more in cities.
Wish you pick the best car & the right policy for yourself!
Evan |
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evan
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| Posted: Fri Aug 15, 2008 6:29 pm Post subject: |
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Also things to consider-car color- bright colors have higher premiums. Plus if you add more features- like tvs, expensive rims- those wont be covered.
If you add a security system, that will lowers your premium.
Good luck!
low.com/insurance=auto insurance
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ngreene66
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| Posted: Fri Aug 15, 2008 6:46 pm Post subject: |
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| Quote: | | Also things to consider-car color- bright colors have higher premiums. |
Ah, no. Heck, insurance companies don't even ask about the color of the car when the vehicle is added.[/quote]Plus if you add more features- like tvs, expensive rims- those wont be covered.[/quote]Most would be covered, depending on how the policy is written, as long as they are permanently installed. Some carriers heavily modify their policies to excluded this type of coverage but most do not.[/quote]If you add a security system, that will lowers your premium. [/quote]Also may depend on the system. Many carriers require that it be an active arming system. |
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tcope
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| Posted: Fri Aug 15, 2008 10:46 pm Post subject: |
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| Quote: | | Also things to consider-car color- bright colors have higher premiums |
I'm not letting you rate my insurance!  just kidding...that's a common mis-conception...color does not increase rates...Most a/m accessories (as T stated) are covered if they are 'permanently mounted to the vehicle with screws/bolts etc'...then after that you get (most policys) 1k without additionally endorcing it...All cars now come with a theft deterent...not a theft 'recovery' unit...if you have a recovery unit, yes, you might get a small break.
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Lori
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esauldaris
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| Posted: Fri Aug 22, 2008 4:37 am Post subject: |
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| Oh I didn't knew that adding a security system can actually lower the insurance premium ..Thanks for the tip.. |
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renditioner
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| Posted: Fri Aug 22, 2008 11:00 am Post subject: |
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| Quote: | | Oh I didn't knew that adding a security system can actually lower the insurance premium ..Thanks for the tip.. |
Yup, the insurer pays an incentive to the policy holder in terms of lower rate of premium if he/she takes care of insuring theft prevention to his car. The comprehensive coverage, which is an expensive component of an auto policy, covers the losses due to car theft. Hence, if you take good measures in ensuring the vehicle's safety by installing anti theft devices, the insurer may lower the premium of the coverage and may also offer you discounts.
Some insurer also pays discounts for green cars. Hence, if you drive eco-friendly vehicle and use unconventional fuel in you car, you may enjoy discounted premium rate in your policy.
Another important factor that influences the premium rate is the number of miles driven by the motorist. If you have lower miles on your car or drive a short distance everyday to commute to your workplace, you may get discounts on the premium.
The insurer takes several factors into account before offering the quote. No doubts that policy rates are rising, but there are still different factors that can influence your rate and can also help you save on the premium.
Regards,
Juanita |
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Juanita
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| Posted: Fri Aug 22, 2008 11:18 am Post subject: |
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Remember that some of these suggestions are carrier specific...most state DOI sites also list things you can do to reduce premium, that are directly relevant to your state.
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"Never, never be afraid to do what's right, especially if the well being of a person or animal is at stake. Society's punishments are small compared to the wounds we inflict on our soul when we look the other way." Martin Luther King Jr. |
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Lori
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