ejm3

Ok so I got my annual car insurance renewal in the mail yesterday.

I admit I normally look at the total amount and if it doesn't go up by too much I pay it and move on with my life.

But this time I reviewed it closely and found something interesting.

We have 3 cars, 2 drivers. No tickets or accidents and the annual premiums for 2014 are as follows, rounded to the nearest $100:

2010 Lexus RX - $1,200
2012 BMW 135i Convertible - $900
2009 Toyota Highlander Limited - $600

So the Lexus is DOUBLE the premium of the Toyota? Its basically the same car!
And 30%+ more than my hot-rod BMW Convertible? Really?

My company breaks out the premium between comprehensive coverage (the cost to replace the car itself) and liability coverage, the amount they will cover for other people who make claims against me (medical bills, lawsuits, etc).

So I can see that the the real driver of the price premium of the Lexus over the other vehicles is the liability portion.

I can call my insurance agent and ask but I know what he's going to say. Something like "Our actuaries use data from actual historical loss payouts to establish our premiums".

So that says that you Lexus RX owners must be crazy drivers!

I know insurance rates are vastly different due to a variety of factors including age, where you live, etc. but is anyone else seeing higher insurance rates relative to other cars they currently own or have owned?

vlad_a

Usually, the insurance company will assign the most expensive (risky) driver to the most expensive vehicle. Then the next driver to the next vehicle. So, it makes sense the RX being on top and Highlander on the bottom and for such a high contrast between rates.

For comparison, I pay as much for both of my vehicles as you do for the Highlander. And the IS used to be slightly more expensive than the RX, even though the RX is about 8 times as expensive to replace. The liability for the IS is almost double of the RX. So, your theory is incorrect about the RX drivers.

I would recommend getting a few quotes from other companies. All have different factors assigned to drivers and vehicles. As you grow older, your current insurance company may not be the best for you anymore, as they prefer to specialize in specific driver types.

RX330inFL

Perhaps there is a difference in coverage based on which are the primary vehicles at the house. There are three vehicles but only two drivers. Or, there could be discounts being given for stacking the policies. I went online, threw some generic information into an insurance quote system, and this is what came back:

insurance numbers.pdf

While a little bit more, does not look like the RX should be twice as expensive to insure than the Highlander. Something else is in the equation you are not seeing in your policy printout. Best just to call your insurance agent and ask right out why things are as they are with your policy. And, come back and let us know what they say.

corradoMR2

Get quotes from other insurance companies or check out geico.com. Not every insurance company has the same rates even with your personal like for like criteria.

Tom558

With your current insurance company you might discuss the number of miles driven each year in each vehicle. I think AAA guesses 10K/year and that may not be the case with 3 cars and 2 drivers. We will put 10-12K on the RX but my Kia is less than 5K. I call AAA each year and give them the OD reading of our vehicles.

ejm3

We are both over 30 with clean driving records so its not a car vs. driver issue I don't think.

Those rates in that pdf file are obscene! But yes its not double the Highlander.

I just emailed my agent to see what he says. There maybe be discounts buried on the other cars that I'm just not seeing.

Edit: Its possible the BMW is on there as a "pleasure" vehicle and the Lexus is a "commuter" car, which would make a difference. But I didn't see any notes to that effect on the policy and that wouldn't explain the Highlander being 1/2 as much since that's also a commuter car.

markrivers

it's hard to compare insurance when we don't know how much are your liability and your deductibles.
and please let us know a little more about your history. Do you have ZERO deductible?
as others have already suggested, shop around.

We have 2 drivers in the family, ( me (35 yr old) and the wife (36 yr old) both very clean records. No Claims for the past 10 years
our 5 month baby is too young to be behind the wheel anyway
Our home owner's insurance/ other insurance are with a different company ( ALLSTATE) so no added discount there.

anyway, here's my renewal from GEICO
i believe, we have a generous Coverage.
( just multiply the figures by 2 to give you the Annual price)

Your current 6 month premium:

Coverage Summary
Policy Number: 424282xxxx
Policy Period: 03/23/2014 to 09/23/2014
$1,181.40

Bodily Injury Liability $197.30
$300,000 per person/$500,000 per
occurrence
Property Damage Liability $213.10
$100,000 per occurrence


Uninsured Motorist & Underinsured
Motorist $68.90
$300,000 per person/$300,000 per
occurrence

2013 LEXS RX 350
$211.50 per 6 months
These coverages are specific to this vehicle.
Comprehensive $40.20
Deductible: $500
Collision $171.30
Deductible: $500


2013 TOYOTA RAV4 EV
$306.10 per 6 months
These coverages are specific to this vehicle.
Comprehensive $67.80
Deductible: $500
Collision $238.30
Deductible: $500

2013 HONDA CIVIC EX
$184.50 per 6 months
These coverages are specific to this vehicle.
Comprehensive $28.00
Deductible: $500
Collision $156.50
Deductible: $500


@ejm3 , i used to live in CT and RI, my insurance carrier there was ALLSTATE ( cheaper than GEICO) but here in CA, it's the other way around.
so again, shop around.

titomang

I have the same coverage on all 3 of my vehicles.

07 RL, 03 s2000, & 11 RX 350 and the RX is the less expensive out of the three. BTW, I have nationwide

ejm3

I guess i wasn't questioning my rates vs. other people rates on a one for one basis as I know everyone is different (for the record I have $1000 deductible, full glass, $50 towing and $500k liability).

I was questioning the relative difference between the three cars, mostly between the Highlander and RX and if others were seeing it as well.

I just got off the phone with my agent and he had good news and bad news. He said exactly what I said he would say, that the rates are calculated by actuaries and they are what they are.

Basically every car gets a "code" and that code translates to a rate that determines the premium. He said the Lexus is high, at a 17 (whatever that means). He also said they re-did all these rate codes for 2014 for there were significant premium changes across the board. He understands it makes no sense but basically told me to be a man and just deal with it.

But the good news is that as a result of these changes for 2014 overall my total premium for all my cars went from $3200 last year to $2800 this year, saving me $400. Oddly enough he said the BMW was the main driver to the lower premiums.

markrivers

The highlander and the RX are not the same
One is a 5 seater while the other is a 7-8 seater.
There's your difference right there.

It's cheaper to insure a 40,000 toyota sienna vs a 20,000 honda civic coupe.

And which is the PRIMARY car? The Lexus?
It's important because the 2nd and 3rd will get the multi car discount. So the numbers you see will be lower
vs insuring the cars as individual car.

$1,000 deductible? Wow that is high!

vlad_a

You should man-up and start shopping for a new insurance carrier now! Your current company is not favoring the RX. Find one that does.

markrivers

+1
You beat me to the punch

ggebhardt

I pay a little less than $1200 for the 2014 RX-F-Sport for a year.

If you have been with the same insurance company for over a few years, you will be shocked at what you "could" save by movong to another company.

ejm3

Yeah but I have to look at the wider view. Last time I went and had things re-quoted Metlife was cheapest by probably $1000, at least among the major insurance companies we've all heard of. This might be explained by the fact that we get a discount at Metlife through my employer.

I have 3 cars, my house and an umbrella policy all through Metlife. So If I pull the cars out and move them to some place half-assed insurance company like GEICO (can't stand that stupid gekko) or Progressive (I hate you Flo) I would lose group discounts that would raise my homeowners policy rates and I wouldn't be able to get an umbrella policy. My total annual insurance bill is $5k plus I pay $360/yr for a FEMA flood policy because I'm an idiot.

So I have to look at the whole basket of insurance I get and the total cost out of pocket rather than just say GEICO will insure my RX for a couple hundred dollars less than Metlife will so I'm changing over to them.

Last time I requoted insurance I had a huge spreadsheet all laid out to do the analysis between policies and companies. I guess saving $1k/yr was worth it though.

There are no primary and secondary cars. All go about 12k/yr. One difference on the policy I confirmed today is the Toyota is 12 miles to work and the RX is 20+, which he said makes a small difference but doesn't account for the $600 variance between the two cars.

Maybe $1k deductible is a liitle high but if something happens I can pretty easily scrape it together. I'm one of those people who even if my claim were $2k or $3k I might just pay it out of my pocket. I am a firm believer that if you make the insurance pay out any money at all they will just raise your premiums to get it back and a lot more over time.

vlad_a

$5k/year for insurance. Wow. Just wow.
I'd say there is more than $1K/Year of potential savings.