Insurance prices like Whaaat?
Discussion
I'm only 24 but I was just playing on the comparison websites while hunting my next car. I quoted two different vehicles with all the details being the same, the only change was the REG. Here comes the interesting bit: first car to get a quote on: Lexus GS300 -around 970 for a year which is fair with me being only 24 and that having 220HP and a 3 litre petrol engine. Then I quoted my current car which is a MK1 1.6 Focus, guess what ......1289 or something like that. Can someone explain why? (I currently pay 680 per year for it)
These days, certainly more and more with this 'crash for cash' mentality, it's much less about what you drive, and more about what you drive into.
Take my circumstances, I'm 25, 26 this year, and drive a 2008 Alfa Romeo 159 1.9 diesel. It costs me roughly £700 per year, with several years' no claims and an advanced driving certificate. I'm hopefully lining up to purchase a 2011 Jaguar XJ 3.0 diesel, and if I do so it increases to £900 or so.
The issue, as far as the insurance algorithms are concerned, is that I drive in excess of 15,000 miles per year, at all times of day and night, and therefore the assumption is being made that I may eventually bump into a shiny Bentley or Ferrari or other expensive marque, causing £several thousand in damage.
Statistically, us yoofs are more likely to stick McDonald's trays under our back wheels and go skidding in a car park at 2am and wrap our car around a lamppost than any other demographic. Therefore, the insurance industry can have its way with us, and there ain't a thing we can do about it...
Take my circumstances, I'm 25, 26 this year, and drive a 2008 Alfa Romeo 159 1.9 diesel. It costs me roughly £700 per year, with several years' no claims and an advanced driving certificate. I'm hopefully lining up to purchase a 2011 Jaguar XJ 3.0 diesel, and if I do so it increases to £900 or so.
The issue, as far as the insurance algorithms are concerned, is that I drive in excess of 15,000 miles per year, at all times of day and night, and therefore the assumption is being made that I may eventually bump into a shiny Bentley or Ferrari or other expensive marque, causing £several thousand in damage.
Statistically, us yoofs are more likely to stick McDonald's trays under our back wheels and go skidding in a car park at 2am and wrap our car around a lamppost than any other demographic. Therefore, the insurance industry can have its way with us, and there ain't a thing we can do about it...
I'm looking to buy my first car soon and I put up a thread similar a few weeks back. It's do with statistics and what younger people drive. So for example, I'm looking at Audi A3 2.0tfsi quattro (no slouch, 200bhp etc) and it's cheaper to insure than a 1.4 Corsa. And even cheaper are huge executive saloons that no one our age would drive, so there's fewer statistics available to them
HedgeyGedgey said:
I'm looking to buy my first car soon and I put up a thread similar a few weeks back. It's do with statistics and what younger people drive. So for example, I'm looking at Audi A3 2.0tfsi quattro (no slouch, 200bhp etc) and it's cheaper to insure than a 1.4 Corsa. And even cheaper are huge executive saloons that no one our age would drive, so there's fewer statistics available to them
Exactly this.Try and find something driven usually by older people. The yaris I had was far cheaper to insure than the equivilant age/spec corsa or fiesta, but the avensis I bought was the cheapest car I've ever insured (apart from my mini on a classic policy).
Big jaguars are probably a good bet! And a Lexus as you've found out.
exelero said:
Yes, I get you but is still the same driver....
insurance is no different to betting on horses. Same jockey different horse, the likelyhood of a win is different.The insurance company knows from their statistics that a person of your age is likely to cost more driving a focus than a lexus. They adjust their costs based on what they will pay out, not what the man in the street might think.
Edited by 98elise on Saturday 8th April 18:19
It is also a likely stat in the equation that if you at your age bought a more expensive car you are out of the norm and statistically more likely to take care of it and not crash it...
I remember many years ago chatting to Swinton Insurance about uni student insurance - Peugeot 205 (not GTI) they had just provided insurance at £1,900 and a Porsche 911 Turbo at c. £600 - for exactly that kind of reason - the great thing now is that as it is more computerised you can play the stats - if no-one at 24 has ever bought a Veyron, then they have no crash stats for that combination and can only work on other factors...
I remember many years ago chatting to Swinton Insurance about uni student insurance - Peugeot 205 (not GTI) they had just provided insurance at £1,900 and a Porsche 911 Turbo at c. £600 - for exactly that kind of reason - the great thing now is that as it is more computerised you can play the stats - if no-one at 24 has ever bought a Veyron, then they have no crash stats for that combination and can only work on other factors...
It seems pointless having different insurance groups if it doesn't have much bearing on the premium charged, then.
For example, you might see a "low" group 5 car (but statistically involved in lots of claims) and think that should be cheap but, then find out a group 15 car is cheaper to insure- less claims!!
For example, you might see a "low" group 5 car (but statistically involved in lots of claims) and think that should be cheap but, then find out a group 15 car is cheaper to insure- less claims!!
cml24 said:
Exactly this.
Try and find something driven usually by older people. The yaris I had was far cheaper to insure than the equivilant age/spec corsa or fiesta, but the avensis I bought was the cheapest car I've ever insured (apart from my mini on a classic policy).
Big jaguars are probably a good bet! And a Lexus as you've found out.
Jag S-Type would be 1300 The Lexus still 900 Try and find something driven usually by older people. The yaris I had was far cheaper to insure than the equivilant age/spec corsa or fiesta, but the avensis I bought was the cheapest car I've ever insured (apart from my mini on a classic policy).
Big jaguars are probably a good bet! And a Lexus as you've found out.
I believe that those comparison price sites store your information and they only work well for the first time you do it as they apply some kind of new customer discount.
When you check to renew, they already have your details therefore they do not apply a new customer discount and make the price of the results go up significantly.
To test it out, try to run a quote again but change some details slightly. For example, try changing your date of birth by 1 day either way, use your next door neighbour address and maybe change your first name.
I have done this and the quotes were much cheaper. Then I had to call them and give them the quote and tell them that I have made a mistake and inputted my date of birth wrong by 1 day and ask them to update it. They will and the price might go up but then question them why does it matter if you were born 1 day later, how does it guarantee a £300 increase. They should change the details and match whatever quote you got.
Good luck.
When you check to renew, they already have your details therefore they do not apply a new customer discount and make the price of the results go up significantly.
To test it out, try to run a quote again but change some details slightly. For example, try changing your date of birth by 1 day either way, use your next door neighbour address and maybe change your first name.
I have done this and the quotes were much cheaper. Then I had to call them and give them the quote and tell them that I have made a mistake and inputted my date of birth wrong by 1 day and ask them to update it. They will and the price might go up but then question them why does it matter if you were born 1 day later, how does it guarantee a £300 increase. They should change the details and match whatever quote you got.
Good luck.
Edited by ANJ91 on Sunday 9th April 00:03
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