The Conservative Cave
The Bar => The Lounge => Topic started by: rich_t on May 25, 2011, 04:14:53 PM
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Anyone here ever work in the auto insurance arena?
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Casualty underwriter from '62 until '66. Company trained by Home Indemnity in commercial/private auto, Workmens Compensation, and public liability. Ended up with Fireman's Fund. The insurance principles haven't changed over the years.
Got a question or problem with coverage?
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Ok... It's a general question.
Why do the insurance premiums for a new vehicle not reduce with age? After all, a 10 year old car is worth less than a brand new one and if the insurance company has to total it out after an accident they certainly will be paying out less.
Obviously inflation does come into play to a certain extent.
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Why do the insurance premiums for a new vehicle not reduce with age?
The premium for comprehensive/collision normally does reduce. Do you have an example where it didn't?
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The premium for comprehensive/collision normally does reduce. Do you have an example where it didn't?
I'd have to double check but I'm pretty sure the premiums for my 03 Hyundai haven't dropped since I insured it with the Hartford several years ago.
I may be mistaken but I don't think I am.
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Premiums will change from year to year based on the loss experience of the companies. Coverages such as BI/PD liability, medical payments, uninsured/underinsured, towing, etc. typically go up by varying percentages. Physical damage such as comp/collision almost always go down with the age of the vehicle covered. But the net change in the total policy premium is usually up.
To see what's happening to your policy, you have to compare premiums on an individual coverage to coverage basis.