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Originally Posted by OneSickPsycho
Let's be serious too... Insurance rates do nothing based upon numbers of claims... Ask yourself why SUV's have such high insurance rates... It's cause they're popular... nothing more.
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Aha! Something I know a little bit about. Insurance rates are based on "actuary(sp) tables". Basically,they take the exact vehicle,the type of person,the area of the country and plug it in to get the rate.
First vehicle info; you're right that popularity plays a role in determining a vehicle's rate index. The more there are,the more claims. They take the number of claims (coll and comp)involving a particular vehicle against the total number of claims. Obviously,if there are more of a vehicle,there'll be more claims. Suvs have a very high incidence of roll overs and are involved in a great number of fender benders. Probably due to distracted parents. Note: when I first got my 'Busa,the ins. rate was approx. half that of a GSXR600 because it was listed as a "sport tourer" and the number of claims were low.
Second personal info; age,driving record,single/married,dependents,credit report,etc. They take these figures and see where you fall in. Apparently, a 19 year old single guy is more likely to make a claim than a 53 year old, married fella.
Third area of the country; this takes into effect the number of claims in your location. Crime rates,weather,etc all play a part in this table. You're more likely to get your vehicle stolen in L.A. but you're more likely to crash it in Dec in Michigan.
Basically,they take their base rate,what they would charge the "ideal driver", with the "ideal vehicle", in the "ideal area" of the country and go from there. You pick up multipliers based on how far you stray from the "ideal". Insurance is a highly competative and gov't regulated business. I doubt that they make decisions based on whimsy.