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Insurance Rates (pg. 2)
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View this Thread in Original format
| Moral Hazard |
Okay, since I'm the only one here with a degree in insurance (aside from Chemy but he hates going into detail) I suppose I'll step in with an answer....
Your insurance premium is essentially a function of your RISK RATING multipled by the total amount of insurance.
RISK RATING is a number assigned to you that represents the likelihood that you will suffer a loss or be liable for someone else's loss that will require the insurer to pay claims. The RISK RATING is an actuarial calculation based on a number of weighted factors both statistical and individual. In nearly all North American jurisdictions the following factors are considered:
- Age (statistical)
- Sex (statistical)
- Marital status (statistical)
- Territory/where you reside (statistical)
- Vehicle class, make, model (statistical)
- Annual mileage (statistical)
- Use - business/personal/leisure/etc (statistical)
- Claims history - last 4 years (individual)
- Driving record - last 5-10 years depending on jurisdiction (individual)
- Insurance history - last 6-10 years (individual)
- Claims/driving/insurance history of other listed drivers (individual)
The formula to used to arrive at the RISK RATING is perscribed by legislation in all North American jurisdictions and depends on the state/province.
This risk rating is then multiplied by the total amount of insurance requested in each area of coverage (collision, comprehensive, liability, accident benefits/personal injury protection, uninsured motorist, unidentified motorist). The total amount of coverage is the limit of coverage for each area of coverage less the deductible for same. Additional amounts are then charged for any endorsements (additional coverages) you request, usually at a flat rate per coverage, ie: $20 for loss of use, $50 for waiver of depreciation, etc.
The colour of your vehicle, lease vs. finance, or amount of airbags are not factors in determining premium. The make and model of your vehicle can be factors in determining your premium with regard to theft coverage as some vehicles are more frequently stolen. The price (list price new) affects your collision and comprehensive premium in as much as more expensive vehicles must be insured for a higher amount.
Finally, to answer the race question... to the best of my knowledge - all North American jurisdictions have legislation that prevents insurers from asking the race of applicants on their application for insurance. As such, the insurance industry can neither track statistics or charge premium based on race.
*** disclaimer - the above applies to North America only. |
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| leph555 |
| quote: | Originally posted by Moral Hazard
Okay, since I'm the only one here with a degree in insurance (aside from Chemy but he hates going into detail) I suppose I'll step in with an answer....
Your insurance premium is essentially a function of your RISK RATING multipled by the total amount of insurance.
RISK RATING is a number assigned to you that represents the likelihood that you will suffer a loss or be liable for someone else's loss that will require the insurer to pay claims. The RISK RATING is an actuarial calculation based on a number of weighted factors both statistical and individual. In nearly all North American jurisdictions the following factors are considered:
- Age (statistical)
- Sex (statistical)
- Marital status (statistical)
- Territory/where you reside (statistical)
- Vehicle class, make, model (statistical)
- Annual mileage (statistical)
- Use - business/personal/leisure/etc (statistical)
- Claims history - last 4 years (individual)
- Driving record - last 5-10 years depending on jurisdiction (individual)
- Insurance history - last 6-10 years (individual)
- Claims/driving/insurance history of other listed drivers (individual)
The formula to used to arrive at the RISK RATING is perscribed by legislation in all North American jurisdictions and depends on the state/province.
This risk rating is then multiplied by the total amount of insurance requested in each area of coverage (collision, comprehensive, liability, accident benefits/personal injury protection, uninsured motorist, unidentified motorist). The total amount of coverage is the limit of coverage for each area of coverage less the deductible for same. Additional amounts are then charged for any endorsements (additional coverages) you request, usually at a flat rate per coverage, ie: $20 for loss of use, $50 for waiver of depreciation, etc.
The colour of your vehicle, lease vs. finance, or amount of airbags are not factors in determining premium. The make and model of your vehicle can be factors in determining your premium with regard to theft coverage as some vehicles are more frequently stolen. The price (list price new) affects your collision and comprehensive premium in as much as more expensive vehicles must be insured for a higher amount.
Finally, to answer the race question... to the best of my knowledge - all North American jurisdictions have legislation that prevents insurers from asking the race of applicants on their application for insurance. As such, the insurance industry can neither track statistics or charge premium based on race.
*** disclaimer - the above applies to North America only. |
you know way too much :disbelief |
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| lücid |
| quote: | Originally posted by Moral Hazard
I'm the only one here with a degree in insurance |
| quote: | Originally posted by leph555
you know way too much :disbelief |
i'm pretty sure that's the point. |
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| tubby |
| quote: | Originally posted by leph555
I think it mostly depends on the value and safety of the car itself. If its a BMW they will charge you a lot more than lets say a ford. Also if you have 6 airbags, abs, some extra fancy safety you will get charged less.
Insurance here is ing crazy, especially for the leased cars. |
if you have all those airbags and fancy things you'll pay a lot more. airbags go off to save you even in reasonablyu low level crashes, and they cost a fair bit to replace.
I wonder if US pays less for insurance like they seem to for everything else, market size and all that crap. Anyone care to compare costs? I know UK is truly incredible for insurance rates. |
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| gehzumteufel |
| quote: | Originally posted by tubby
if you have all those airbags and fancy things you'll pay a lot more. airbags go off to save you even in reasonablyu low level crashes, and they cost a fair bit to replace.
I wonder if US pays less for insurance like they seem to for everything else, market size and all that crap. Anyone care to compare costs? I know UK is truly incredible for insurance rates. |
depends on the age. when i first got my license it was 3000USD/year for full coverage. |
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| Moral Hazard |
| quote: | Originally posted by tubby
I wonder if US pays less for insurance like they seem to for everything else, market size and all that crap. Anyone care to compare costs? I know UK is truly incredible for insurance rates. |
It's pretty hard to accurately compare cost for insurance between jurisdictions, especially internationally. Too much changes by jurisdiction; liability limits, statutory AB/PIPP coverage, jury awards for injury, cost to repair, etc. Trying to compare insurance costs in one jurisdiction to another is like apples and oranges. |
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| Sunsnail |
| 720 every 6 months for the minimum coverage possible :( |
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| pkcRAISTLIN |
| quote: | Originally posted by Sunsnail
720 every 6 months for the minimum coverage possible :( |
stop posting on the internet and go practice FA you thieving little turd! |
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| Sunsnail |
| I've been playing with krypton a few games. I'm getting better :) |
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| pkcRAISTLIN |
| quote: | Originally posted by Sunsnail
I've been playing with krypton a few games. I'm getting better :) |
good lad!! :) |
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| Moral Hazard |
| quote: | Originally posted by SuspicionVandit
we can settle it like men without poindexter pecil pushers. |
Seriously... did you just call me a nerd? |
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| colonelcrisp |
| well after careful consideration, i have figured out that my penis costs me about 100 dollars a month extra. If i lopped it off with an ice pick would i get a discount on my insurance? |
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