Honda Car Forum

insurance groups are so high compared to others in their class - why?

cheers

www.esurance.com




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Well its a combination of things. First, insurance companies set their
rates based on the accident rates of the vehicles. Since Hondas are
frequently the best sellers in their class, it stands to reason that more of
them will be involved in collisions. The insurance companies use this as an
excuse to charge more by arguing that they are a higher risk vehicle due to
the number of accidents. (Gotta love how stats can be twisted to say just
about anything.) Another reason is that Hondas (mostly Civics and older
Accords) are always on top of the list for stolen cars.

"froglewis" <froglewis@btinternet.com> wrote in message
news:c7lsoe$39m$1@titan.btinternet.com...
> insurance groups are so high compared to others in their class - why?
>
> cheers
>
>

Sean D wrote:
>
> Well its a combination of things. First, insurance companies set their
> rates based on the accident rates of the vehicles. Since Hondas are
> frequently the best sellers in their class, it stands to reason that more of
> them will be involved in collisions. The insurance companies use this as an
> excuse to charge more by arguing that they are a higher risk vehicle due to
> the number of accidents. (Gotta love how stats can be twisted to say just
> about anything.) Another reason is that Hondas (mostly Civics and older
> Accords) are always on top of the list for stolen cars.

Also, Civics and Preludes in particular are very popular among the younger
crowd. Many of these younger kids like to "rice" them out with excessive
body add-ons and drive the hell out of them.

I was told that ONE of the factors in insurance industry pricing ratings
was the fact that Honda Civics with their VTEC engines are the most
widely modified vehicles used in the legal and ILLEGAL street racing
circuits.A lot of 18-35 year olds like to disassemble and reassemble
them into quarter mile racing machines.And they are the most
inexpensive(especially used) for this purpose.And a lot of accidents
happen in illegal street racing.

SAC 441 wrote:

> I was told that ONE of the factors in insurance industry pricing ratings
> was the fact that Honda Civics with their VTEC engines are the most
> widely modified vehicles used in the legal and ILLEGAL street racing
> circuits.A lot of 18-35 year olds like to disassemble and reassemble
> them into quarter mile racing machines.And they are the most
> inexpensive(especially used) for this purpose.And a lot of accidents
> happen in illegal street racing.

OTOH, a stock LX model with the non-VTEC engine is cheap to insure
as nobody touches them for such purposes.

I disagree. Mine is very low. 550$CAD for an Accord EX-L 1999.


"froglewis" <froglewis@btinternet.com> wrote in message
news:c7lsoe$39m$1@titan.btinternet.com...
> insurance groups are so high compared to others in their class - why?
>
> cheers
>
>

"Sean D" <nospam@nospam.ca> wrote in message news:<0Jxnc.37521$Np3.1450919@ursa-nb00s0.nbnet.nb.ca>...
> Well its a combination of things. First, insurance companies set their
> rates based on the accident rates of the vehicles. Since Hondas are
> frequently the best sellers in their class, it stands to reason that more of
> them will be involved in collisions. The insurance companies use this as an
> excuse to charge more by arguing that they are a higher risk vehicle due to
> the number of accidents. (Gotta love how stats can be twisted to say just
> about anything.) Another reason is that Hondas (mostly Civics and older
> Accords) are always on top of the list for stolen cars.
>
> "froglewis" <froglewis@btinternet.com> wrote in message
> news:c7lsoe$39m$1@titan.btinternet.com...
> > insurance groups are so high compared to others in their class - why?
> >
> > cheers
Believe it or not, they're on the top of the list by sheer numbers,
because there's LOTS of them out there. By percentages only, Honda
and Toyota are down in the 80th - 100th place. Geo Metro is 1st or
2nd. I'm not kidding by the way.

"Sean D" <nospam@nospam.ca> wrote in message
news:0Jxnc.37521$Np3.1450919@ursa-nb00s0.nbnet.nb.ca...
> Well its a combination of things. First, insurance companies set their
> rates based on the accident rates of the vehicles. Since Hondas are
> frequently the best sellers in their class, it stands to reason that more
of
> them will be involved in collisions. The insurance companies use this as
an
> excuse to charge more by arguing that they are a higher risk vehicle due
to
> the number of accidents. (Gotta love how stats can be twisted to say just
> about anything.) Another reason is that Hondas (mostly Civics and older
> Accords) are always on top of the list for stolen cars.
>
> "froglewis" <froglewis@btinternet.com> wrote in message
> news:c7lsoe$39m$1@titan.btinternet.com...
> > insurance groups are so high compared to others in their class - why?
> >
> > cheers
> >
> >
>
>
Interesting comment. I am 63 with a clean driving record and no accidents
(yet). My 01 Prelude insurance is over $1600 per year, more than twice that
for my wife's Pilot. The problem is that I have a 24 year old on my policy
with a shaky record, even though he does not drive the Prelude -- has a
$3,000 10 year old 4 door sedan. BTW liabilty on his car (which is all we
carry) is almost $800.00 per year. The insurance company figures that if he
borrows the Prelude he will undoubtedly try to race someone -- and they are
absolutely correct.

Sir Lointip <me@privacy.net> wrote:
> Sean D wrote:
>>
>> Well its a combination of things. First, insurance companies set their
>> rates based on the accident rates of the vehicles. Since Hondas are
>> frequently the best sellers in their class, it stands to reason that more of
>> them will be involved in collisions. The insurance companies use this as an
>> excuse to charge more by arguing that they are a higher risk vehicle due to
>> the number of accidents. (Gotta love how stats can be twisted to say just
>> about anything.) Another reason is that Hondas (mostly Civics and older
>> Accords) are always on top of the list for stolen cars.

> Also, Civics and Preludes in particular are very popular among the younger
> crowd. Many of these younger kids like to "rice" them out with excessive
> body add-ons and drive the hell out of them.

When I was recently getting insurance quotes for cars that I was thinking
about buying, the representative from my insurance company told me that
they charge more to insure Civics than Accords or TL's because the claim
rate is higher for Civics. The claim rate is higher because younger, less-
experienced drivers are more likely to buy Civics.

Why an older driver who buys a Civic should be penalized, I don't know.

Andrew