Insurance Logic

Full coverage on late model $50K car started at $1400 per year, 5 years later the car’s value is $25K the full coverage insurance is still $1400 p/yr, another 5 years later the car is worth $7K and the full coverage is still $1400. – no claims, is this normal?

Please explain insurance logic to me.

Is usually goes down a little. But most of your insurance is liability.Have you had any moving violations???

You might be able to get somewhere if you talk to someone in person; provided you have a local branch of whoever your company is. They might take a look at your policy and see that they’ve had a snag in your file.
Like many places today, they also go by your credit score as a means of charging you more or less. A lower score means you’ll be paying more while a higher score gives you a bit of a discount. Mind numbingly idiotic, since there’s so many people struggling as it is and getting behind on payments.

Please, Make, Model, Model-Year, Miles ?

Thank You,

Is it normal? Yup.
Is it fair? Nope.
But lawyers upon lawyers and actuaries upon actuaries cost money.
And have you seen the price of granite skyscrapers lately?
Oh, and someone has to feed the lobbyists and the members of congress that they service to keep this all legal.

The decrease in collision costs could have been offset by inflationary increases everywhere else. But remaining the exact same total amount appears as though they do not update unless you question.

If you have an accident, costs almost the same for them to fix, weather new or old.

Yep, a fender costs the same on a four year old car as a new one. If it floats away that’s one thing, but most of the time its bent sheet metal. Ever checked on the price of paint lately? Last I talked to the body shop, the owner complained that a gallon of paint cost him $400.

All my insurance costs have dropped over time as he car aged and I had no driving convictions. As Mike said, most costs are liability.

I’d guess that most accidents are minor. In your example, if most accidents are expected to be under $7.000, then it wouldn’t really matter if the car was worth $7,000, $25,000, or $50,000.

Yes, insurance premiums usually go down over the lifetime of the car, but it isn’t because of the car’s age. It’s because you’re getting older, and rates always go down as you age unless you have a bad driving history. Do you have any moving violations on your driving record?

Think of it this way. Whether I own a 1998 Lexus in pristine condition or a 2010 Lexus in pristine condition, the cost to repair my Lexus after a collision is going to be about the same. In fact, if parts for the 1998 Lexus are hard to find because of its age, it might cost a little more to repair.

Another thing to consider is that repairing or totaling your car after a collision might not be the largest expense for the insurance company. Liability for property damage and bodily injuries have much more potential to be through the roof, especially if the collision was caused by your negligence.

The Insurance Premium For Collision Should Come Down As The Car Ages And Blue Book Value Drops. It’s In The Cost Of A Possible Total Loss And The Company’s Exposure On Collision Claims.

The Insurance company is out up to $50,000 on the new vehicle discussed.
The insurance company is only out up $7,000 on that same vehicle when it’s ten years old.
The insurance company has less exposure covering collisions on the beater car.
You need to look at the bills and compare line items. The collision certainly should be lower.


I pay $5-600 a year on the new cars and $200 a year for the old car with just liability and comprehensive. A lot of it depends on where you park too. You’ll pay more in Boston than in Fairmont, Minnesota for the same car and demographics. Take a look at your statement and it will itemize how much each of the coverages cost.

Sorry for being somewhat OT and didn’t think it warranted a new thread but I’ve heard somewhere that there is something ‘special’ about the '98 LS400, if you can get your hands on one. Urban rumor or is there anything to this? On the subject of insurance (home and car) just watch rates go up (or worse still become unavailable) for everyone living in the Northeast courtesy Sandy…

Except, Whitey, that your 1998 Lexus is going to be totaled out if there’s any significant repair, because insurance companies have a cutoff percentage of the car’s value, above which it’s automatically totaled. This means that your $5,000 Lexus is going to be totaled if you do $3500 in damage to it, so the most the insurance company will pay for it will be around 4 grand. Whereas if I’m driving a 2 year old Lexus, and I get in a wreck that does $15,000 in damage, it probably won’t go over the value percentage cap, which means the insurance company is on the hook for the repair. So, the insurance rate should go down, and does if you insist it does.

OP, start calling around to other insurance companies and get quotes. Then call yours, tell them you’ve got a lower rate from another insurance company. When they ask what it is, don’t tell them, because they’ll just match it when they might be willing to go lower. Tell them “No, tell me what your lowest rate will be for insuring my car at these coverages. If you beat your competitors, you keep my business. Otherwise, I’m leaving.”

+1 on checking for another insurer. I know that my insurer takes replacement value into account. We just sold a 1998 car that cost us $1300 every 6 months to insure. It was worth about $1700. It was replaced with a $10,000 car and its insurance is $1900 every 6 months. The coverage is the same and the driver is the same.

$1900 for 6 months?!
What are you 16 and driving a corvette?

The closest I came to seeing a quote that high was when I was considering a brand new 2002 Acura CL type S and I was 21 or 22 at the time; and that was just over $1000/6 months