Overhaulin'

Insurance for new vehicles?

I always wondered about how rates for new vehicles are calculated. Since there can't be any real statistics or an average for accidents, repairs or theft for a brand new model of car or motorcycle which barely has been on the market, then how can an insurance company say that a new car is going to cost so much insurance since there probably has been a very few accidents or thefts involving a newer car compared to older models. So let's say a 2009 model car has high insurance in one area because it has a high rate of theft. Is it fair that the insurance company give the same high insurance to the 2010 model even though there were less or no thefts of the 2010 models? Shouldn't a brand new car be technically cheaper in insurace than older models UNTIL there has been enough claims on the new models of cars to give a better estimate of accidents and thefts and other claims?

Public Comments

1. Well, the insurance companies are going to error on the side that protects them the most. And using the guilty until proven innocent theory has made them all rich, so what's their motivation to change ???
2. The Insurance Institute for Highway Safety tests the cars before they are ever released. Besides, until a car is invented that shares few properties with anything else on the road, all new vehicles will fall into a specific category. Insurance companies use a set of metrics to determine the level of risk by the classification of the new vehicle, and the equipment (engine size, luxury items, etc). A 3,000 pound sports car with a 350 hp V8 is more likely to be raced and crashed than a 4,000 pound sedan with a 3.0 liter V6. A luxury car with fancy alloy wheels, leather interior, and a sunroof is more likely to be stolen than an economy car with cheap wheel covers and vinyl interior.
3. autoinsurance.undonet.com - try this one. I have their car insurance and, as I know, they can provide such a service.