zeroday

This might be a stupid question; humor me. I'm a member over at my350z.com, and I'm amazed at how many, well, morons over there are wrecking thier cars left and right by street racing and hotdogging on back roads. I always assumed rates were based on age/driving history/cost of parts for the vehicle you're insuring, and hp/weight ratios....but do rates go up for a particular make/model car if a large number of people keep wrecking them?

I consider myself a responsible driver and I really don't think I should have to fork out more of my hard earned paycheck because of these people.

Shawn S

Heck yea.
And considering this is the first year for the 350Z, the rates could go up SHARPLY in the future if this is as widespread as you say.

Accidents, theft rate & average repair costs are all factored in every year to decide rates.

Shawn S

zeroday

aargh! bastards!! ok time for some nasty posts over there. :flamer:

'03CL&'03AV6EX

No, your rates will not be affected by the morons. What happens is ISO a rating organization has collected data concerning your vehicle, i.e, the cost of repairs, crash worthyness, etc. This is what will impact your collision and comp rates. The same can be said for liability rates if you are in the same age group as the morons. What you may not be aware of is the way the insurance industry is using an insurance score(based on credit) to set their rates. Sreach google for "credit underwriting" and you will see what I'm talking about. I am a Market Conduct Examiner for the Oregon Insurance Division. I regulate insurance companies. Hope this info helps.

sidemarker

im just curious what kind of accident most of these guys get into and have you heard any fatality from wrecking a Z?

sidemarker

fuzzy02CLS

iTrader: (2)

My insurance went down $8 from the 02 auto, to the 03 6 speed. Figure that out?

mrdeeno

Insurance is (un)regulated depending on state and Oregan insurance regs. can be a lot different from other states.

In PA, only certain companies run credit ratings, and they don't effect rates that much, only the payment options.

And when insurance companies do research and find a high risk/performance car, it not only effects your comp/coll, but also liability because the car is more likely to get into an at fault accident where the company would have to pay out to the 3rd party.

Bottom line, our rates are ALREADY effected by morons...the people who do hit and runs, drive without insurance, try to cheat insurance companies (some even on this forum), drive drunk, drive while female, etc. etc. etc.

'03CL&'03AV6EX

Ture, each state has its own laws; however, the NAIC has a great deal of oversight to make rating issues and other insurance laws consistant among all states. Look up NAIC in google to see what i'm talking about. BTW: credit underwriting has nothing to do with with payment options.

lou_RENAMED

Guys your wrong remember the Ford Mustang 5.0 GT well the insurance on that car was so high because of the accidents and racing tickets. As soon as you mentioned the mustang 5.0 the insurance skyrocketed it was a very fast car at the time and the rear end broke loose to easily causing many accidents. Im sorry to say but the insurance for the 350Z will in fact go up because the car is classified as a risk. Its like when you own a Honda Civic why do you think the rates are so high for full coverage....its because the car is stolen so often its classified as a risk. When i had my Civic my insurance company quoted my a difference of $25 dollars a month cheaper for full coverage on a 2002 tL-S than my Civic

mrdeeno

i'm not sure what you mean by credit underwriting, but i used to work at an insurance agency in my highschool and college days, and we wrote for several companies and only a few of them used credit ratings, and most of the companies that used credit ratings changed what payment options they were allowed to select.

Most of our customers were non-standard policies, but 70% of their premiums were exactly what we quoted them without running credit checks, and the 30% that were off were because they did not disclose all their accidents/tickets/violations.

i am rusty on the subject because i don't work in that field anymore.

'03CL&'03AV6EX

Mr. Deeno: today and perhaps for the last 5 years insurance companies have turned to underwriting insurance by developing an insurance score for the insured (that's us the consumers that purchase insurance products). This score is comprised of several varibles none of which have anything to do with driving.

So say that you have just moved into a new house and got a new job making big bucks. You go to an insurance company for insurance since you move you are a greater risk and will not fit in the company's most preferred market. Moving=unstable, bad. How long have you been on the job, just started a new job, new job=unstable. They will still insure you but not at their best rate.

One more example: lady with the same company for 47 years no losses and no tickets. Her credit score was so bad because see did not use credit that her renewal premium increased by 140%. The Oregon legislature is listening to testimony on this case right now. "Credit Underwriting" check it out on google.

zeroday

no fatalities thankfully...yet anyways. LOTS of people rolling them, wrapping them around trees, running them off the road basically. most of the culprits are under 25 yrs old.

CLSter

Here in Washington my rates went up a bit due to an adjustment for Acura CL drivers being all crazy. Granted it was only $13 but I just can't wait for that 10% loyal customer discount to kick in someday. I really hate my state when it comes to taxes and insurance.

John*K

Just curious -- but if they run your drivers license, SSN, and previous policy number before the full quotation, won't they see any violations/tickets/accidents/DUIs, &c.?

mrdeeno

No, when we did a quotation, we ask them several questions, including if they have had accidents or violations, and the quotation is based on the information they give us. Then if they like the policy, we give them the policy based on this quotation with the down payment.

Then the insurance company processes the information and checks the driving record which takes place days/weeks AFTER the policy was written, and the premium is adjusted if there is a need. Then the policy holder either has his payments increased or if he paid in full, he has to pay the difference.

mrdeeno

What you are saying may be true now. I have not worked in the field for 3 years, but I still know that our agency in PA does not depend on credit ratings. It does ask how long you have worked at a place or how long you lived somewhere, but the premiums haven't reflected a big difference between the people who move alot/change cars/change jobs vs. those who are more "stable".

I actually just talked to my aunt (she owns the agency) and she said they do take it into account, but most of her customers' policies premiums have already taken that into account because most of them are non-standard (change cars every 2 months, at least 2 violations, move every year, no credit history, etc.).

She does not deal too much with standard policies where I guess what you are saying may be true, that there is a big difference between non-standard and standard rates when it has to do with credit ratings, but if you use me as an example (changed jobs in the past 3 years, moved 3 times in the last 4 years, 1 speeding ticket, changed cars in the past 2 years, constantly switching from full coverage to liability (at least 4 times in the past 2 years due to me travelling 90% of the time), yet I am still on a standard policy, and they forgave the speeding ticket. So my premium is probably as low as it'll go for my age/car/location.

John*K

Sorry to bother, but it really has piqued my curiosity. So say you have made a claim for a scratched car or a dent, or had some serious infraction a few years ago. Does this mean that, even if you give them all the information they ask for but do not disclose the claim, whatever; and if you have already paid your premium upfront; that your premium could go up a few weeks after the policy begins? Why are policies quoted and first implemented in this way?

mrdeeno

I think the claims for a scratch or dent only follow if you stick with the same insurer (but that's why you get a better rate if you stick with the same insurer).

But yes, it happens all the time that someone is quoted a price and a policy is written, only to find out that the cost is actually higher because they had a violation they conveniently "forgot about". I think there is a disclaimer on the policy that says that the premium can increase after the policy is in effect because of things they find later.

we usually tell our customers that they need to tell us EVERYTHING, especially AT FAULT accidents and violations, before we quote them. And I think the premium is actually higher if there is a change because they did not disclose anything than if they disclosed it in the first place. There were some policies that were cancelled because the customer forgot to disclose they had DUIs or DWIs, and some of the companies we write for do not take anyone with those violations.

But I don't worry too much about claims on a policy. I've made several, large ones though, that haven't counted for much against me . The one was a hit and run on my previous car, and the 2nd was a guy hit me on my motorcycle and he did not have insurance.