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Originally Posted by brendo83
I was amazed at some of the prices, the age and replacement cost of the vechicle doesn't seem to matter at all, a BF XR6T cost exactly the same amount to insure as the FG XR6T despite being covered for 13g more, yet a BA GTP is covered to 13g less but costs 400 more to insure. the FG XR6T is covered for 400% more than my XR8 but is only 20% more to insure.
So I'm thinking maybe its based on risk and third party coverage, but 240kw BA XR6T has a hell of a lot more poke than an 160kw EF XR8, yet insured for twice as much for $100 more, third party is $216 for any car I chose.
Honestly its got my stuffed how they come up with these quotes.
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A big, big part of it is their claims statistics on each car.
For example, just say they have 100 EF XR8's insured and 100 BA XR6T's insured in one year. Now you'd think the BA worth twice as much ($20k) and twice as quick would be twice as expensive to insure.
100 EF XR8's insured, just say that 10 of them get written off (pay out averages $9k each) = $90,000 that EF XR8's have cost the insurance company that year.
So for every EF XR8 that is insured by the company, it's going to cost $90,000/100 = $900 bucks. So you have to charge each customer at least $900 bucks on an EF XR8 before you start making a profit (according to your write-off statistics from last year, and not counting other costs involved).
100 BA XR6T's insured, just say that only 3 of them get written off (pay out averages $20k each) = $60,000 that BA XR6T's have cost the insurance company that year.
So for every BA XR6T that is insured by the company, it's going to cost $60,000/100 = $600 bucks. So you have to charge each customer at least $600 bucks on an EF XR8 before you start making a profit (according to your write-off statistics from last year, and not counting other costs involved).
So as a business, the insurance company looks at these figures and when they are working out how much to charge for each car, they are going to charge according to how much that make and model typically costs them each year ...
not just in write-offs, but also in repairs, accidents, thefts etc. etc.
That's also a reason why your premium can go down for 3 years in a row with one company and then all of a sudden increase by $200 bucks.