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Discussion Starter · #1 ·
State Farm recently increased the insurance on my 1999 v70 glt by about $100/yr claiming that this model as a whole has a higher rate of claims and higher cost than previously rated. Has anyone else experienced this?<p>I know State Farm paid a lot of Katrina related claims last year and only had a 600 million $ profit in 2005 as compared to the 3 billion $ profit in 2004, but it would be cynical to think that they're looking for ways to make more money?
 

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Re: 1999 V70 insurance increase (dovstar)

Insurance goes UP as a model gets older, (to a point) go figure but it's true
 

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Re: 1999 V70 insurance increase (JRL)

I understand that european cars do cost more to repair and will always cost more to insure, but when I asked State Farm why the insurance on my older BMW has steadily gone done year after year all they said was that each car is rated individually, blah, blah, blah...
 

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...Strangely enough, insurance on my '99 has also "steadily" gone down year after year. No tickets or claims, and the renewal notice says "good driver discount". I am far from a good driver, btw, just a good radar detector & watch my rearview as much as I watch the road ahead!<p>You may want to get another quote from another (well known) company.
 

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Re: 1999 V70 insurance increase (dovstar)

Physical damage base rates are generally based upon the repairability and how prone a car is to theft. At least that's the theory espoused by folks like ISO (not that one but the Insurance Services Office which compiles statistical ins. data for most of the US-based industry). Now with all that said, each company has the ability to adjust these base rates to reflect their own claims experience (i.e. normal stuff or storms, etc). ISO will also periodically (use to be a couple of times a year, not sure these days) modify the rates to reflect the industry-wide experience. Both entities, however also have their "deals" (I call them biases). If its a "sports car" it might have a additional factor applied because, as we all know, people with sports cars seem to want to wreck them. 4 door cars get a credit because only old folks (the safe ones) only drive 4-door cars. Cars like the Rs probably drive those accuaries crazy! Many of these things are supposed to reflect differences that are seen statistically but many companies will use these tweaks to drive away or attract business they would prefer not to have or want more of respectively.<p>Bottom line here is that the theory makes some sense, but the reality shows the crap and the ever-present quest for increasing profit that insurance companies are known for. <p>Now if we have any insurance guys who want to provide more recent info or want to argue the point that's great. I escaped from a previous life that spent 10 years in that business (I have the CPCU to prove it) until I finally realized what a dirty business it was and continues to be. And do I have an attitude towards the industry as a whole, you bet.<p>Cheers,<br>
 

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Re: 1999 V70 insurance increase (billr99)

<A HREF="http://www.insurance.com" TARGET="_blank">http://www.insurance.com</A> they will give you rates from a many different companies, you can chose who you want.<br>I cut my car insurance 50%<br>I now pay $1k a year for two cars with full coverage. <IMG NAME="icon" SRC="http://********************/smile/emthup.gif" BORDER="0"> <IMG NAME="icon" SRC="http://********************/smile/emthup.gif" BORDER="0"> <br>Good Luck!!!! <IMG NAME="icon" SRC="http://www.vwvortex.com/vwbb/biggrin.gif" BORDER="0"> <p>Ciao
 

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Discussion Starter · #8 ·
Re: 1999 V70 insurance increase (dovstar)

The insurance company claims this increase is because this model specifically has higher costs to insure and has nothing to do with me. Time to look around but cheaper isn't necessarily better since it's all about the fine print.
 
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