Insurance premiums.
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  1. #1
    Moderator Alan S's Avatar
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    Insurance premiums.

    Always a touchy subject particularly around European cars. Seems if the parts prices are outrageous it doesn't matter if they're Jap but tend to multiply premiums if European.
    A typical example is my Ford (Mazda) Spectron XLT which had rust in the surround of the sunroof; a very vulnerable to damage part at any time. This is a U shaped piece of metal which is more cosmetic than functional. Years ago this was quoted at $1395 - I had guessed on it being expensive at around $150 - $200. A dodgy uni joint. Staked fitting so $890 for a tailshaft; I fitted a new one for $26 & so it goes on.
    The reason I'm throwing this one up for discussion is that on the Cit Board there has been a thread going for some time on the wide & varying prices for similar cars. Example, I pay $360 for a BX 16V whereas a guy in Sydney's wife was quoted I think it was $1450 for a more sedate version.
    I believe Chipper is in the Insurance business, so may be able to shed light on who would be the most logical company to approach for which particular vehicle.
    To put yourself fully into the picture with this debate to the present, refer to Oz Cit Bully Board:
    http://members3.boardhost.com/citroen/


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    If it ain't broke, use a 12" shifter.....that usually does the trick!!

  2. #2
    Fellow Frogger!
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    Hey Al,

    Ok, without going into the nitty gritty of premiums and how they are calculated, there are a number of factors that come into the calculation over and above what type of car it is you are trying to insure. Sure, European cars may cop a bit of a penalty due to parts procurement in the event of an accident especially if they are a car thats not so common, but so do Hi-Po Japanese cars. Suspension, steering components can be high cost for a car like a Citroen or a 4ws Honda Prelude for that matter due to their sophistication and the fact these bits are usually "the first on the accident scene", a higher cost than say a Ford Falcon, but again, this is only a percentage of the total factors that go into making a premium.

    A major factor in the difference between insuring a BX in QLD vs NSW is the chances of the car being involved in an incident. Qld has a large area and a small population when compared to Nsw. Small area and a large population = higher risk = higher premium. Again, simplified, but you can see where I am coming from. Some areas may be a higher risk again due to the amount of accidents, theft rate and the like, some areas are better. This plays a pretty big part in allocating premium when doing the risk assesment and allocating points for an area.

    Things like finance can make a difference from the view point that if you own the car, you are more likely to look after it better than if its a lease vehicle. This may not be true in all cases, but the pattern is there.

    Claims frequency for a certain type/value of car can come into the equation as well. Mrs Jones can now afford that shiny $40000 car but still cant drive for shit but doesnt really care, cause the insurance company will fix it. Someone like me who works hard to get a car that they want and looks after it is a lessor risk because they care what happens to their pride and joy. So this again, can have a bearing on premiums in certain circumstances.

    The biggest differing factor is your own No Claim Bonus discount, up to 60% off the premium over someone who has never insured before.

    So take solice that it is not always the car, the value of the car that makes your premiums up, its how hard are they to fix, what are parts like getting, are they stolen regularly, who is driving it and where, what are they like as drivers, do we want them etc?

    If you have any specific questions, just let me know and I will elaborate where i can.

    Chipper

  3. #3
    Moderator Alan S's Avatar
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    Thanx Chipper,
    So basically, being a doddery old fart on paper, driving a performance car, living in the bush with a lock up garage, 4 dogs with homicidal tendancies and a bad attitude problem towards anyone lurking in the vicinity without good reason can pay off?
    I found the description of the reasoning as common sense as any I have heard in the past. I have a couple of questions for you.
    Is it OK for me to post this reply of yours on another forum (Citroen) & mention here, aussiefrogs, as the source.
    Also when it comes to deciding on premiums, why is it that say a CX which would inhabit wrecking yards & private sources almost in plague proportions & are cheaper to get parts for second hand, parts are in abundance, few if any companies would even consider new parts with the exception of say windscreens (which are cheap aftermarket) would be quoted a premium about 3 times that of say a Mazda/Spectron mini bus where parts prices are astronomocal & oercentage wise more of the Maz/Ford models would be involved in prangs due to their type of operation??
    There seems to always be a degree of inconsistency in their logic.

    If it ain't broke, use a 12" shifter.....that usually does the trick!!

  4. #4
    Fellow Frogger!
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    Al,

    No probs, copy and paste away.

    Yes, it looks like your situation is a pretty low risk set up, one hell of a lot cheaper than city Sydney...even if you had a crazy dog or three

    With a CX being more than an Econovan etc to insure, I can see your point about parts being available for these things, but may still come down to how long and how tricky/acurate the repairs also have to be. I would bet the econovan would have a higher tolerance for a less than acurate fix than a CX, and maybe takes half the time to fix. I still cant be sure why, but these would be my suggestions. It may still come down to what will be damaged (like its easy to rip the sump off a 205 going up a gutter)in a small accident and things like headlights/tail lights can play a huge part as well. A CX would have to be dearer in this instance...

    My advice is to also check to see what the insurance company is giving you for your money, some have hire cars, some dont, some guarentee work, some dont. These can make a difference as well.

    Chipper

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