Quote:
Originally Posted by Tigranakert
Will someone explain to me how insurance works then? For all I know, all the cars my family and relatives have driven have gone down in insurance costs over time due to no accidents and if gone up, it was due to whatever reason, not being other people crashing that car. I'm talking about more than 30 different car models here... What does my driving have to do with how you drive your car? The cost of repair will raise your insurance? (Rhetorical)
I hope its not the mistake, "its a sports car so the insurance will cost more," because that's nonsense.
Please Explain.
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The subtle part of this is that many things effect rates. Those things include the theft risk for the model of car, the costs associated with repairing or replacing that model, the driver's history, the accident rate for that model, the areas of the country where the car is located and a whole slew of others. Yes, if everything stays pretty much the same, the rate will go down as time progresses for a particular owner and a particular car. Because with age, a number of those risks above are reduced, particularly the replacement cost. However, risks asscociated with particular models are always being evaluated by the insurance companies and if they see high losses with a paricular model, the portion of that model's rate associated with the accident rate for that model may increase in the mix. All you really see is less of a decrease in the overall, and you may not even realize it. Meanwhile, someone else getting their new car insurance on that model will also see a higher rate compared to other models. In my case, with five cars on my policy, some drop faster than others and is not hard to tell which ones are seen as risk by the insurance industry. So the subtlety is that it won't go up, but the normal rate that it drops will be less, which is effectively a rate increase as the car ages.