With all the new anti-theft devices in today's cars, I'm kinda reluctant to install LoJack. But living in metro Phoenix, ranked number four in auto thefts, I don't think I want my car parked outside without it! I have it installed in the Escape. Just trying to decide if it'll be a worthwhile purchase. More than likely, I'll give in and get it. But for now, I'm torn.
I broke down. I have an appointment tomorrow morning to get it installed.
FYI, if anyone else is interested in getting it, I paid $440. Dealer cost was $410. Don't know if the dealer cost varies per dealer, but at least you have a jumping off point so you'll be able to negotiate a better price than the $695 retail price, or $495 discount price (the original price they quoted me before negotiating).
I dredged up this topic because of a story today on my company's intranet site:
{identities removed to protect the innocent; as used below, X = a three digit number}
Quote:
With gas prices remaining stubbornly high, more Americans are seeking alternatives to their gas-guzzling SUVs. Many of the new economy diesel and hybrid models will save money on fuel expenses, but what about insurance rates?
Consider the example of a 35-year-old married man living in {a specific town near my company's headquarters}, who averages 12,000 miles a year, with a clean driving record. Among the top six fuel-friendly vehicles, the six-month premium ranges from the VW New Beetle's $X to the Honda Insight's $(1.36*X). The difference in price [of insurance] could definitely affect a customer’s [car] buying decision.
“Larger SUVs tend to be more expensive vehicles, which is the most important vehicle characteristic driving insurance premiums,” said {a guy for whom I used to work}. “The higher the vehicle cost, the more it costs to repair or replace after an accident. They also generally have higher liability rates because they can cause more damage and injuries in an accident.”
If demand for fuel-efficient vehicles increases, {he} pointed out, the price of these vehicles could also increase, in turn raising insurance premiums. So, how can customers educate themselves about insurance premiums on fuel-efficient vehicles?
“The best thing for a customer would be calling {their insurance company} first to determine the premium on a new hybrid vehicle before buying,” said {another guy in my department}.
The article fails to compare the insurance prices for "comparable" but less fuel-efficient vehicles -- a price-conscious consumer should obviously look at (fuel $ saved) AND (insurance $ difference), not just (fuel $ saved) and (cost of insurance on the fuel-efficient vehicle).
That lack of follow-through is pretty typical of stories on my company's intranet. I'm sure our intranet is not unique in that most of the articles are of the "we're a great company!" variety.
I'm paying $434 this year for my 2003 HCH, full coverage ($100/$300), glass coverage, $50 deductible.
Driven 14 miles each way to work, not garaged, multi-car discount, safe driver discount, no accidents or tickets in the past 3 years, age 34, male, 85367, Arizona, no kids, non smoker, vegan, short fingernails, avid photographer. Oh, I guess the last few don't have much relevance....
Ah, the curse of still being a young lad. I pay over $1,300 a year for full coverage on my '05 HCH - and that's by far the lowest rate I could get. I've never had an accident or ticket in my 7 short years of driving, and I've got just about everything going for low insurance rates except my age and sex. I even get a "good student" discount, though seeing as medical school is currently ripping me a new one, I don't think that will last very long. I can't wait to turn 25 and get my first big relief in the insurance dept.
I even get a "good student" discount, though seeing as medical school is currently ripping me a new one, I don't think that will last very long.
Does your insurance company ask for proof that your good student status has continued? Some companies ask for proof to trigger the discount, but don't require any proof that you still meet the GPA & full-time & whatever else requirements.
With all the new anti-theft devices in today's cars, I'm kinda reluctant to install LoJack. Top ten places for auto theft:
1. Modesto, Calif.
2. Stockton-Lodi, Calif.
3. Las Vegas, Nev.
4. Phoenix-Mesa, Ariz.
5. Sacramento, Calif.
6. Oakland, Calif.
7. VIsalia-Tulare-Porterville, Calif.
8. San Diego, Calif.
9. Fresno, Calif.
10. Seattle-Bellevue-Everett, Wash.
Pardon, my ignorance, what is a LoJack?
On your list, I see that the top 10 list consists of basically western cities, and specifically California ones. I would have expected to see, for instance, NYC in that list.
No way man, it's not ignorance at all. Got a question, ask it! We all learn from somewhere.
Basically, it's a transponder that's hidden in your car. When you realize your car is stolen, you report it to the police. When you tell them you have LoJack installed, they activate it. The device hidden in your car sends out an electronic homing beacon, that police cruisers with listening devices, can track and follow. Leading them to your stolen car...
Living so close to the Mexican border, you probably have a pretty high theft rate, also.
I finally dove in and bought LoJack for my HAH. We already had it on the Escape. I don't know if the pricing is fixed where you're located, but if I recall correctly, the dealer told me their cost on the device was something like $410. I bought mine for $440. Shop around. Don't pay the $695 retail price!
I can't wait to turn 25 and get my first big relief in the insurance dept.
Call your insurance company to verify this. The last three companies I've used told me they don't have magical ages that drops insurance to a large degree. Age IS a factor, but it's gradual. Instead of insuring you at $1000 at 18 and then at 25 dropping it to $500, they do something like $900 at 19. $850 at 20. $750 at 21. $700 at 22... all the way to $500 at 25.
I've used Progressive, GMAC, and now USAA.
I've also found shopping around EVERYTIME renewal comes around can save you money. What's the best rate this year may not be the best rate next year.
I don't know for sure, as it has never applied to me. But I've heard my friends talk about insurance companies they've used don't really care if you've "stuck with them" through the years. Your coverage pays out the same if you're a new client or you've been with them for 10 years. And to some degree, your premiums don't matter either. After the initial switch(some companies charge you more for being a new client), it doesn't matter if you're with them for any extended amount of time, you still pay the same premium.
Are there any insurance agents on the forum that can shed some light on this topic? I hear insurance quotes are derived from a long string of variables, and therefore, is highly unpredictable. But I'd be curious to know some of the inner workings of coverage factors so that I can tweak my policy.
I've also found shopping around EVERYTIME renewal comes around can save you money. What's the best rate this year may not be the best rate next year.
If price is the major factor in your insurance-buying decision, this is certainly good advice. In fact, I think I gave that advice on this board at some point in the recent past.
Some customers value service quite a bit, and will pay more for excellent service (or what they PERCEIVE to be excellent service). Unfortunately, you don't REALLY know if you're getting excellent service until you have a claim.
Quote:
Originally Posted by bar10dah
I don't know for sure, as it has never applied to me. But I've heard my friends talk about insurance companies they've used don't really care if you've "stuck with them" through the years.
Insurance companies DO care about retaining business. Insurance is like most businesses in that it costs more to get new customers than it does to retain existing ones. Most insurance companies also want to grow (# of policies, $ of earned premium, etc.) and if they don't retain customers, it's going to be very hard to grow.
Another reason that insurance companies want to keep existing business is that they tend to have fewer and less costly claims. After all, an insurer's profitability depends on claims as well as on collected premiums.
The only difference I know of between rates for new vs "stick around" customers is that some companies give renewal discounts. Other than that, the rates determined by an auto insurer cannot vary by your status as a new customer vs a renewal customer, at least not in my experience.
Insurers can (and DO) use different underwriting characteristics and rules to determine the factors they apply to those rates to calculate your premium. Most people would consider that splitting hairs, but to people in the insurance business a "rate" is different from a "premium". The easiest way to explain the difference is that a rate is what an unidentified person plucked from the population *would* be charged while the premium is what a specific person (with specific characteristics) *is* charged -- it may be less than the rate, it may be more.
Quote:
Originally Posted by bar10dah
Are there any insurance agents on the forum that can shed some light on this topic?
I'm not an agent, but I am an actuary-in-training -- can't really call myself an actuary until I pass all 9 exams, and that isn't going to happen too soon (I have passed the first 4).
Here's a very simplified version -- AutoInsuranceRUs has a "base rate" for each coverage available for cars "garaged" in zip code 12345. To that base rate, many factors get applied -- they might be based on age, gender, marital status, annual miles driven, "use" of the car [commute? business? "pleasure"?], etc. For "physical damage" coverages (collision, comprehensive), they also will apply a factor based on the model and year of the vehicle. Most of this stuff is determined by the actuaries who work for AutoInsuranceRUs and then approved by the state insurance department (where zip code 12345 is located).
Then the underwriters come in -- they're the ones who ask questions like "Does he have any moving violations?", "Does he have good credit?", "How long has he been with his current insurer?", etc. They will either apply factors individually to all of those questions OR they'll put the answers into a model to come up with one overall factor. Those factor(s) get applied to the rate calculated by the actuaries.
(I intentionally included How long has he been with his current insurer?" as a hypothetical question there because it CAN have an impact on how you're underwritten. That's the argument AGAINST changing insurers too often.)
* I work at AutoInsuranceRUs . For 3 1/2 years I helped figure out the base rates and factors I described in the first paragraph above. For the past ~6 months I have been helping determine how much money we have to keep around to pay claims ("reserving"). I'll be happy to answer any questions, and I'll be happy to say "I don't know" when I can't.
Wow, thanks! That's definitely a lot of information. And as I really know nothing about how the auto insurance world works, I'm glad you're around to make heads and tails of it for us.
Now I know who to go to with questions! Just as long as you don't send me a consultation bill in the mail.
Re: Insurance rates for Hybrids
. For 3 1/2 years I helped figure out the base rates and factors I described in the first paragraph above. For the past ~6 months I have been helping determine how much money we have to keep around to pay claims ("reserving"). I'll be happy to answer any questions, and I'll be happy to say "I don't know" when I can't.
