Anyone here knows how car insurance works? My parents bought insurance for me and they are not home (on vacation) so i cant ask them (i could phone them but not at 2am in the morning anyways and i really wanna know now). Say if u got ur car stolen and the insurance company pays u back the blue book value of ur car and for the next five years ur insurance rates goes up. Dose that mean eventually u actually paid back for ur own loss(money they gave u)?

 

Here's how insurance works:

You give them money.

Your car gets stolen, you get into an accident, you do anything that was your fault; they raise your rates.

You then give them more money.

Almost makes you want to start your own insurance company.

 

no but i'm asking if u got ur car stolen and they raise ur rates ....eventually u pay them back the amount they gave u (due to the raised rates) for ur loss right? if thats the case then WTF is insurance for (other than for the LAW)?

edit: i'm asking this cuz ppl tell me not to worry about cars being stolen cuz thats what insurance is for....but if insurance works the way i just mentioned then u actually pay for ur own loss which is a good reason to worry for...


[Modified by Tiwe, 7:36 AM 9/13/2002]

 

it's a gamble. a lot of people give them money and set a rate for you based upon your age, sex, and car you drive. they determine your rate through statistics and what not. so basically, the insurance company banks on YOU or PEOPLE in general to not crash so they can keep your money. if somebody crashes, the insurance company pays for it. but more than likely, more people don't crash than crash, so they gain money in the end. now if you get into an accident, they raise your rates because now you are more of a liability.

it's an inegnius idea.

cliff notes- people dump money into a big pot. you/they crash, they give you/them money. they charge you more for annual rates.

 

I know exactly what you're saying and you're wrong.

You're not paying them back.

It's akin to:

Everyday your mom makes you give your brother $5.

One day you happen to be short on cash and need to borrow $10 from your brother.

The following day your brother tells you that you now need to give him $7 everyday, because he's annoyed at you for borrowing the $10 yesterday.

Sort of...

 

ummm ok that fuking sucks if it works that way....currently i'm paying about $9100 CAD (about $5800 USD) per year for insurance from State Farm. I'm 18(turning 19), 1 accident (not my fault) and no ticket. Anyone know any cheaper insurace for me in Toronto area?

 

Call an insurance agent for that one.

 

i think my parents already did and thats probably the lowest they can find... but dose this rate sound right for me? cuz $9100 sounds like alot. My other friend which is also 18 perfect record drives E46 M3 and he pays $11000 for insurance per year. WTF a car that cost so much more only have to pay $2000 more than me for insurance?

 

buy a cheaper car...lower rates...

EDIT: can somebody tell me why an 18yr old is driving an ITR, that is, unless he bought it himself? o yea...an e46 m3 also...wtf?!

EDIT: bought my own ITR and M3 =P
[Modified by LiKe_WhOa!, 8:14 AM 9/13/2002]


[Modified by LiKe_WhOa!, 8:15 AM 9/13/2002]

 

insure the car under one of your parents. then insure you under another car.

 

as long as he appreciates it. that's all that matters.

 

4 door is cheaper

 

is that legal?

 

Not if they find out... Some insurance companies base your rates on loss experience, some don't ( for theft claims and other no-fault incidents )

Just call them and ask.. Oh and by the way $8k for a years insurance??

I'd take the bus and invest the difference.. In a few years you could buy a porsche
and be old enough to get a lower rate!

 

sure it is. your mom or dad can be the primary driver of the ITR and you can be in charge of the beater. if anything happens to the car (god forbid) you happened to be driving it that day WAY lower insurance.

 

i agree with lotus on this one

 

Tiwe - $5000 USD for insurance is way too much! If you can't insure your car for cheaper, get a second car $1,000 beater and insure your R as your weekend driver. It'll lower your insruance (well, it should for most people over 18 in the States).

 

A word of advice on insurance: They're not the only ones gambling.

I have lucked out somehow with my company. My rates are not the cheapest, but more importantly I am insured with a great company. I have made two fairly large (and 100% legit) claims on my car due to theft and vandalism. Not only have they not dropped me, but my rates did not go up either.

When shopping for insurance, I'd try to talk to customers of the company if possible. Generally the small, cheaper companies do not have as good customer service, but that's not to say that the larger companies are all that great. Canada's insurance laws are AFU too, so I'm not sure how that affects things.

Good luck.