also based on frequency and severity of claims for that type of car (including theft), age, demographic, location, credit score, other similar cars, claim history, crazy mass laws. engine type doesn't really come into play much, more power output and type of car. credit score is a big determinant that companies use if the state will let them
Car Insurance
- Thread starter BostonMSProtege
- Start date
the credit score of the insured, i guarantee they use it to determine your premium as long as state regulations allow it. some states don't allow credit score, and mass is crazy because it's all run the the govt, but in normal states credit score is a player in determining premium. actuaries have found a relationship between credit score and frequency of claims, claim amounts, how likely someone is to cover their own smaller claims, and the likelihood that someone is going to actually pay their premium, so the higher the credit score, the better your insurance.
age is also used, not as heavily as it used to be (like the when you hit certain ages you get a big discount, things are much better segmented now), but they still use it.
again, mass is totally ****** up in regards to the auto insurance market, but in other states this holds true. some companies place higher emphasis on one criteria over another but they will play a role to some extent
age is also used, not as heavily as it used to be (like the when you hit certain ages you get a big discount, things are much better segmented now), but they still use it.
again, mass is totally ****** up in regards to the auto insurance market, but in other states this holds true. some companies place higher emphasis on one criteria over another but they will play a role to some extent
elsewhere in the book there is a mention of credit score, and since the book is a few years old it was relatively new at the time but the head of Personal Lines here said that we are increasingly using credit score to determine premium, as the more it is studied the better it has beenHow Insurance Works said:
Using credit score is B.S. That has absolutely nothing to do with a driver's risk. Drunk drivers can pay bills on time too yah know.
I think the following is all that should be used to determine the insurance on a particular person (in order of importance meaning a problem at the top weighs heavier than a problem at the bottom)
1) Criminal record (especially having to do with traffic offenses)
2) Ratio of years with good record vs bad record
3) Number of years driving
4) Years since last accident
5) age/gender/demographics based on recent statistics for the area
6) car class with recent statistics for the area
When I say recent statistics I mean it. I could be wrong but it seems that there are more accidents involving SUVs than sports cars in my area...yet drivers of sports cars have higher rates. The statistics should be interpreted correctly and should be up to date.
Items 2-4 are important to make sure one-time accident offenders do not get insurance hikes. Accidents DO happen that are not always the fault of the driver who is placed at fault.
I think the following is all that should be used to determine the insurance on a particular person (in order of importance meaning a problem at the top weighs heavier than a problem at the bottom)
1) Criminal record (especially having to do with traffic offenses)
2) Ratio of years with good record vs bad record
3) Number of years driving
4) Years since last accident
5) age/gender/demographics based on recent statistics for the area
6) car class with recent statistics for the area
When I say recent statistics I mean it. I could be wrong but it seems that there are more accidents involving SUVs than sports cars in my area...yet drivers of sports cars have higher rates. The statistics should be interpreted correctly and should be up to date.
Items 2-4 are important to make sure one-time accident offenders do not get insurance hikes. Accidents DO happen that are not always the fault of the driver who is placed at fault.
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statistics don't lie. credit score is only part of the equation as wellchuyler1 said:
insurance companies have teams and teams of actuaries who do nothing but study statistics. they've analyzed everything from every possible angle and do it day in and day out with the most current statistics available.chuyler1 said:
while there may be more SUV accidents, you have to look at their severity as well. most of them are fender benders or other relatively small things, whereas accidents involving a sports car typically happen at higher speeds, thus causing more damage and costing more. medical bills and lawsuits get real expensive real fast, so it isn't typically physical property that companies are worried about, which is all a soccer mom in her SUV typically damages in a fender bender. a few thousand to fix a few cars vs. a couple hundred thousand in medical bills or a suit brought because of death from a higher speed crash
insurance companies want to sell you insurance at the lowest price possible because if they can find a way to cut your price without putting themselves at risk for taking a loss they are going to do it because they know then you'll buy insurance from them. if they can undercut their competition, they're going to, but not to put themselves at risk.
believe it or not, insurance companies don't make much money from the actual premiums you pay them for personal insurance. they make their money by investing that money that you pay them and it is their profits from investment that truly makes them a profit
im at 3600 roughly a year as well... its rediculous.. im paying nearly the same per mo. for ins. as i do per mo. for my car paymwnt.... legalized rackett,....
then again.. in from july 2002 to aug 2004 ive had $22k payed out for a GMC jimmy... $9K for a miata and $10500 for the pole i hit... $6700 for my prote' ES and $8900 for the cop car that My buddy hit... and $1900 on the ES for a hole i put in the rear qtr... and $4800 when that same ES was in a hit and run.... so looks like in 2 yrs they kicked out... roughly $59K!!! i know why i pay so much.... any belive it or not i only had 2 tickets form all of that
then again.. in from july 2002 to aug 2004 ive had $22k payed out for a GMC jimmy... $9K for a miata and $10500 for the pole i hit... $6700 for my prote' ES and $8900 for the cop car that My buddy hit... and $1900 on the ES for a hole i put in the rear qtr... and $4800 when that same ES was in a hit and run.... so looks like in 2 yrs they kicked out... roughly $59K!!! i know why i pay so much.... any belive it or not i only had 2 tickets form all of that
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AceProtege
Member
altspace said:
vehicles in Mass are rated in numberous things. being FI'ed does not really matter.....you have to look at the whole picture!
AceProtege
Member
jred321 said:
yeah.......
mass insurance is just retarded, no ifs ands or buts about it. pricing isn't competitive because it's all government regulated so you all pay pretty much what the government wants you to pay, not what the insurance company has determined is appropriate for you to pay. that's why lots of companies don't even do business in mass, there's no market there for them to make moneyAceProtege said:
mass is retarded, everyone knows it, it's only a matter of time before it changes. nobody is really making any money there because they aren't allowed to, so i wouldn't call it a racket. it was done with good intentions, but the government moves slower than the insurance companies, so it just can't keep up.
and if i were you, orphman, and got roughly $52,000 ($59k in payout - ~$7k you paid) in free money, i would be praising the insurance industry for letting you still have a car and a paycheck that hasn't been garnished by the state
and if i were you, orphman, and got roughly $52,000 ($59k in payout - ~$7k you paid) in free money, i would be praising the insurance industry for letting you still have a car and a paycheck that hasn't been garnished by the state
jred321 said:mass is retarded, everyone knows it, it's only a matter of time before it changes. nobody is really making any money there because they aren't allowed to, so i wouldn't call it a racket. it was done with good intentions, but the government moves slower than the insurance companies, so it just can't keep up.
and if i were you, orphman, and got roughly $52,000 ($59k in payout - ~$7k you paid) in free money, i would be praising the insurance industry for letting you still have a car and a paycheck that hasn't been garnished by the state
dude... dont get me wrong... i agree i made out... but it sucks monthly...
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