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And what carrier bases premium on this factor???
Liability Only Vehicle Type.
- Thread starter HughG
- Start date
And what carrier bases premium on this factor???
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AmirMarashi
Expert
Year, Make, and Model
-The age of your car has a lot to do with your insurance premiums. That is because the older you car gets, the more value it loses. The less valuable your car, the less expensive it may be to repair or replace, making it cheaper to insure because the risk to the insurance company of paying out a large claim is reduced.
-The make and model of your car have a big impact on rates as well. High-end luxury cars usually cost more to insure because they are more valuable to begin with. The cost of parts, repairs, or even replacement in the event of a total lost can be very expensive for the insurance company. Thus they will charge a higher premium.
-The model also has an effect on insurance rates. Two cars that are from the same manufacturer but are different models can have different rates. In fact, even the difference between two cars with different trim levels can make a difference. A sedan, for example, may cost less to insure than the coupe version of the same car. This is because coupes could be considered sportier and statistically at a higher risk of an accident.
-The age of your car has a lot to do with your insurance premiums. That is because the older you car gets, the more value it loses. The less valuable your car, the less expensive it may be to repair or replace, making it cheaper to insure because the risk to the insurance company of paying out a large claim is reduced.
-The make and model of your car have a big impact on rates as well. High-end luxury cars usually cost more to insure because they are more valuable to begin with. The cost of parts, repairs, or even replacement in the event of a total lost can be very expensive for the insurance company. Thus they will charge a higher premium.
-The model also has an effect on insurance rates. Two cars that are from the same manufacturer but are different models can have different rates. In fact, even the difference between two cars with different trim levels can make a difference. A sedan, for example, may cost less to insure than the coupe version of the same car. This is because coupes could be considered sportier and statistically at a higher risk of an accident.
Lets set the record straight.... this is a liability only question.
Insurers look at 2 things (primarily) for liability rates:
Frequency and severity.
Frequency: How often does that car get into accidents. Yes, some car models are MUCH more accident prone then others.
Severity: When it gets into an accident, how much damage does it do.
From there, they determine a symbol for the car. The symbol is then plugged into the driver model (drivers history) to come up with a rate.
Most of this data is not publicly known so its hard to know which car is cheaper to insure for liability only coverage without pricing a few. I'd be more concerned about the cost of maintenance though, since that will likely have a much bigger overall impact on cost of ownership.
Insurers look at 2 things (primarily) for liability rates:
Frequency and severity.
Frequency: How often does that car get into accidents. Yes, some car models are MUCH more accident prone then others.
Severity: When it gets into an accident, how much damage does it do.
From there, they determine a symbol for the car. The symbol is then plugged into the driver model (drivers history) to come up with a rate.
Most of this data is not publicly known so its hard to know which car is cheaper to insure for liability only coverage without pricing a few. I'd be more concerned about the cost of maintenance though, since that will likely have a much bigger overall impact on cost of ownership.
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