Comments for Car Insurance

Comment on How much more dose car insurance costs for teens than middle aged people and why? by General T

General T — Sat, 16 Jan 2010 08:09:32 +0000

In short: teen drivers pose a greater risk and therefore cost more to insure. Insurance premium costs are based almost purely on the risk–liabilites and costs–the insured may potentially cause the insurer. The insurance company uses people schooled in actuarial science to statisically assess the exact potential risk factors and then assigns a premium cost to those risks.

Very basically, there are two classes of risk an insurer looks at when computing premiums:

1. Specific risk factors such as: vehicle, gender, previous claims, school status, etc.

2. Overall risk of a group of drivers as statistically assessed (using actuarial methods).

Historically, teens, as a group, have had a far greater number of claims at a far greater cost to the insurers than have older drivers. So, when an insurer computes the insurance premium for a teen the added risk of just *being* a teen driver is added up front, before the specifics are even taken into account. If you are driving a car that has a poor risk history, also assessed via actuarial models, then the premiums will be even greater. The same is true if you live in a high risk area–an area with a bad risk history.

So, bottom line: if you are an 18 year old guy with a Corvette living in Oakland your insurance costs will be astronomical.

Comment on Why is car insurance premium expensive than a home insurance policy ? by MJG

MJG — Sat, 16 Jan 2010 08:05:56 +0000

It is a high probability that car can get involved in any accident. While damage to house is less expected.

Comment on What’s the cheapest car insurance company you have found?? by Jaylene G

Jaylene G — Sat, 16 Jan 2010 08:02:05 +0000

I would have to State Farm, With them you get great customer service, excellent and expedient claim handlings, always some one there to help you as most offices are availble 24 hours a day 7 days a week, via phone and internet or in the office. They value their customers and have quite a few discounts that can save you a ton of money. What more could you want from a company.

Comment on What’s the cheapest car insurance company you have found?? by UCANTCME

UCANTCME — Sat, 16 Jan 2010 07:57:15 +0000

1. TRY PROGRESSIVE.

2. YES THE YEAR WILL MAKE A DIFFERENCE IN PRICE.

3. THE CITY AND ZIP CODE WILL MAKE DIFFERENCE IN PRICE AS WELL.

4. YES THEY WILL ASK ABOUT YOUR TICKETS AND YOU MUST BE HONEST BECAUSE THEY WILL FIND OUT AND BACK CHARGE YOU THE DIFFERENCE.

5. YES YOU HAVE TO HAVE FULL COVERAGE WHILE MAKING PAYMENTS.

Comment on Is it necessary to buy Rental Car Insurance even though i have my car insurance policy with me? by ♥Georgia Peach♥

♥Georgia Peach♥ — Sat, 16 Jan 2010 07:54:52 +0000

When you rent a car, you have to have full coverage on the care that you own (your personal vehicle) and then that will automatically carry over to the rental. If you do not have full coverage you can add it to your existing policy for the amount of time you’ll be renting the car OR just buy the insurance from the rental place. And to answer your other question, no your policy will not cover somebody else’s car just because you’re driving it. Insurance covers vehicles, NOT people, even if you were in an at fault accident, your friend/relative’s insurance would have to cover that loss.