Insurance, Whats the Deal

[Black F6]

My missus just got her insurance for her stock as a rock 2005 Lancer, it is insured for $21,000.

My BF XR6 is insured for $35,000, and our premiums are exactly the same price, we just went and spoke to NRMA and they said that, because it was a Lancer and young people did them up it was extra.

My missus has been driving for 11 yrs no accidents, no tickets, nothing.

I have been driving for 4 yrs and 3 tickets.

Her Lancer is 94kws of pure power.

Mine is 190.

Don't figure.

Anyone else have similar stupid insurance stories like that.

[Smoke Pursuit]

When do insurance companies ever make sense.

If i was you id be shopping around.

[EA2BA]

Is it a 4door or 2door lancer, a 2door is called a sports car so will attract a higher premium for a start, stop laughing its true.

[Black F6]

No four door, stock as a rock

[LTDHO]

Scott there is more to insurence than power! Geez.

[Black F6]

Yeah but thats the reason she gave us, because their hotted up :evilsasmo

I just ****ed myself, couldn't believe it!!!!!!!!!!

[GCFordChic]

Our cars attract the same premium. But we cant "shop around" seeing as we are under 25 only one place will insure us (Well, another did offer to, but at $2700 a year for each car. Ummm no). I cannot wait until we are 25!

2002 AUIII XR8 Pursuit 250 (with all its modifications) and (in the same name) a
2001 AUII XR8 Sedan which is insured for almost $10K less without any modifications.

Apparently the sedan being an AUII is easier to steal.

[pecker73]

I worked for NRMA for 6 years... You would answer that stupid ... "Why is my premium blah blah blah"... A HUNDRED times a day...

By the tenth time, you would splurt out anything.. Oh' its cause your car is ......

Shop round. Each company rates each driver/car/suburb differently, all based on their experience. Its pot luck !

[Black F6]

Does anyone know of other insurers, that won't say its "Hotted Up" crap, for Gods sake its 94 Kws

[LTDHO]

Scott you are asking the wrong people.

Call centres are not going to give you an explanation when there are 20 other people waiting to ask the same question

Call Shannons.

[EA2BA]

For the record they do get hotted up, have 2 lancer EVOIII wannabe's, well they have turbos and EVOIII badges everywhere + bodykits around the corner from me, a marone one and a white 1, looks like they belong to VSS as well.

[Black F6]

Yeah but this is stock as a freaking rock, no mods, nothing

[DJM83]

Not sure where you live mate but give RACV a call i paid 1400 last year on my TE50 with g/f on policy she is 20 im 23 and i have lost my license (no change in premium just higher excess) so i just dont crash

[Yellow_Festiva]

There are still people around who swear that the ONLY insurance company is NRMA and the ONLY phone company is Telstra....

What do you mean you cant shop around???? Every time ANY premium is due for me, for any type of insurance i open the yellow pages and get out a scrap of paper and call the main 5-6 companies for a quote.

AAMI has an online quote system as well.

I dont give a toss about loyalty and i dont buy those "multiple policy discounts" (shopping around will always get a better deal i find)

OH, and as for NRMA. I called em for a quote, got a good price and advised them that my car was stock standard, however i re sprayed her Metallic yellow with yellow pearl. They said that i was un suitable for insurance. They asked me several times if i had any modifications, and kept trying to trip me up with my responses. I was told that i could take my car down to the bankstown NRMA for an inspection.

Got to Bankstown, they no longer do inspections. Explained my situation to the gal behind the counter "Oh thats stupid, we've insured floro pink cars with yellow polka dots defore" haaaaaa

She got no where either, my paint job is considered the same as those "Harlequim" multi colour paint jobs that change colour depending on the viewing angle.

So ive never bothered with NRMA again. Nor has my family......

[Interceptor]

how about this for a joke.....

RACQ's market value for an 1994 Manual ED XR8 Sprint is $6900

they wont insure me with a twin 2.5" into a single 3" exhaust cos the 3" bit is too big..... i didnt bother asking if they'd be happy with a full twin 2.5"

according to them, extractors arent part of the exhaust system......

[peedee]

My daughter has shopped around for insurance and hers is a stock 1986 lancer wagon, and shannons do not insure under 25 they told her, my insurance on a V8 4 door insured for more is less than half hers, it has to do with the risk associated with the particular model of car and the age of the driver, it would cost more for me to insure her lancer in my name than the V8, because it is a lancer, and according to statistics have been involved in a higher percentage of accidents, therfore a higher risk to the insurer

[Sorted]

Lancer = High Accident / High Claim Vehicle

Any High Accident / High Claim Vehicle the insurance premium is higher

This is based on loss ratio - it could be a claim from a stone chip to a total write off..........

All insurance company's have lancer's in a high category due to this

On Another note predomently 2 Door vehicles are more expensive to repair than 4 door vehicles - higher repair bills for insurer's therefore higher premium

Its very simple really..................

[qwigybo]

being 22 and having an xr6t didn't give me many options
racv is the only company that would insure me $1300 p/a pay by the month for $32000 agreed value.
my alternative was just cars at $1700 p/a no pay by the month and would only insure for $30,000 with modifications
shannons, aami, everyone else said you're under 25 no way yet i'm on a rating 2 and had full comp insurance since i was 18 no accidents and 1 speeding fine.
on the upside they racv wanted to charge me $2800 p/a for a '00 VT R8 clubsport just cars wanted $3500 hahahaha

[LTDHO]

Originally Posted by DRHEMI

Its very simple really..................

Yes it is, yet people still don't get it.

Insurence is based on Risk and cost. That simple.

Insurence companies are not car ethusiests. They do not no what extractors or cam are. But they know if they tick the box, the computer says yes or no.

[V8falcons]

Originally Posted by BFXRScott

Does anyone know of other insurers, that won't say its "Hotted Up" crap, for Gods sake its 94 Kws

Budget direct,Will kill that quote!!!! and If they dont tell NRMA, Budget direct were cheaper(make up a figure) and all of a sudden the premium will be cheaper.
good luck

[GXL078]

I can't see why Shannons increased my premium after the first twelve months when I didn't make a claim. Maybe their "costs" went up due to people who did. I am only "allowed" do do an "average" of 3000Kms per year.
It costs me $39 a month to insure my GXL with all mods listed on the policy for $15,000. And before those of you who live in outback Victoria pipe up and tell me you can get yours so much cheaper, I just happen to live in the theft capital of Sydney.

[4.9 EF Futura]

It's a result of the method an insurer uses to calculate insurance premiums - especially a large insurer.

Whilst a call centre operator may be able to provide general indications regarding the drivers of premiums - the real answer lies with the insurer's actuarial staff and underwriting teams.

An insurer is required to estimate its expected claims. "Estimate" is a generous term - the process is incredibly complex and highly scientific/mathematical. They are required to estimate expected claims and assign a liability value to the expected claim - so they are therefore able to hold assets against these liabilities and (hopefully) remain solvent.

The premium charged reflects:

The expected claims cost for each policy
The costs associated with underwriting/claims
The cost (and expected recoveries) of reinsurance
The cost of capital, which reflects the profit they are targeting

For a given line of insurance business.

The first item on this list is the big ticket in terms of driving the price. For domestic motor vehicle, you would expect their historical data (frequency of claim and size of claim) relating to:

Driver profile
Vehicle
Postcode

To feed into their estimate of expected claims.

To answer the thread starter's question... basically - they will have data that shows that a portfolio of people with the same profile as your missus, insuring the same car, will give rise to a similar claims cost as a portfolio of people like you, insuring your car.

When they write a policy - they basically know how much of your premium they can expect to lose in claims.

The data is obviously dynamic, hence sometimes you get unexpected premium variations from year to year - depending on how the claims experience from the previous 12 months has affected their averages.

It also explains why there is variance between insurers (well, between most of them)... because they are working off different data sets, they will come to a different premium value (but most will be within each other's "ballpark")... which is why its worth shopping around (unless its REAL commodity type insurance, eg 30 year old male, clean record and insuring a dead stock BA)

[kiwikid10]

When I bought the AU Fairmont for my wife I spent a full day on the computer and the phone getting quotes.
Seeing as she is 29 and the car is a V8 it took that long to get a reasonable quote.
I ended up with ING for $840 pa. Agreed value with modifications and non-standard extra's.
The key is to shop around. ING are underwritten by CGU however CGU direct won't insure my car, I also had the car quoted with me as the primary driver and with my wife, It always works out better if I am the primary driver, I am over 30 but have speeding fines within the last 2 years.However no claims for 10+ years helps.

In general try everyone and see what you come up with, I even went to brokers,specialist ladies only insurers, just cars, shannons etc etc.

All I can say is good luck.