Insurance Cost Calculations (archive)

I'm sure that Insurance Man can correct me if I go astray here, but from what I know, there are a lot of factors in calculating insurance premium costs, some unique to individual companies.

(not necessarily in order of importance):

1. Zip Code - metropolitan areas are higher than suburban or rural.
2. Driving Record - tickets, accidents.
3. Discount packages - if you insure 2 or more cars or cars and a house, you'll get lower rates.
4. The Car - make, model, year: repair costs, theft rates, company history with model. Also affecting the calculation: passive restraints (airbags), ABS, etc.
5. Coverage - raising your deductible will lower your premium. Different plans may be available. Also some plans will lower premium as car ages.
6. Your age - rates are higher for teenagers and early 20 somethings. [I'm not sure if they still do so, but when I was a kid, rates where different for male teenage drivers vs. female - SRC].
7. Other discounts - some companies give discounts to non-smokers, good driving record, etc.

The key is to shop around. With 30 minutes of time and the Yellow Pages, you will probably receive quotes hundreds of dollars apart. But as usual, caveat emptor. There are some shady companies out there, so be sure to do some research on them before you purchase a plan from some small time firm just because they quoted great rates.

[BTW - I pay approx. $840/yr: good record, multiple vehicles and residence, suburban area, over 25 yrs old, 100/300 with 2500 deductible. In comparison, we pay over $1000/yr for my wife's '94 Supra non-turbo, with similar coverage but a lower deductible. I know I'm not getting the best deal dollar-wise, but I trust my agent to be there when I need him and that counts for a lot in my decision.]

Stan C.
'92 Blue 850iA
Bay Area 8's

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