rvtommy
blooming prairie minnesota
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Joined: 07/15/2004
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Insurance companys do a lot of research!!! Maybe why motor home and trailer insurance is cheaper sometimes than a car driven to work every day!! I think some of the reasons are the history of rver's are safer drivers and also drive at safer periods of time and most do not speed or get into many accidents!!! The question is if they do all this research why do they not see that the BIGGER the truck pulling a trailer or fifth wheel the safer and less chances for the accident?? Why do they charge more for 4500 or 5500 series trucks than a smaller 2500 or 3500 series truck??? Does anyone have email addresses for the big wigs of our insurance companys?? Just seems there should be discounts offered for having a safer truck rather than payig more because they were once only used for industrial purpose. rvtommy
this is rvtommy
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granite
ohio
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Joined: 02/10/2008
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I suppose replacement cost is higher on a bigger, more expensive truck.
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arizonadesertbrat
Where ever the pipeline leads
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Joined: 08/20/2008
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When I was working for State Farm, the powers that be, explained it to us as the bigger the truck, the more the damage to anything they hit, should they be in an accident. It does stand to reason that an F350 is going to cause more damage to a Mercury Marquis than a Ranger. That is not to say that I agree with all the reasoning that is being used now, since credit rating is used to set your premium as well, and is, in some cases over-riding driving records. I have seen cases where an excellent credit rating with accidents got better rates than a clean record and lesser credit. I still keep asking where the thought that past performance is best predicted of future performance went.
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rvtommy
blooming prairie minnesota
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Joined: 07/15/2004
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granite I have 08 F-450 MAYBE worth 40k have seen Toyoto Tundra for more than that??? The new trucks (smaller) have seen list prices over 60k with the new engines my my my where is it going to stop? rvtommy
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Dutch_12078
Great Sacandaga Lake, NY
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Joined: 10/07/2008
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The reason for the higher rate is likely pretty simple. The folks over in the "Loss Forecasting & Actuarial Dept." say it costs more to satisfy the claims against those trucks than it does the smaller trucks. Part of that higher cost may come from the larger number of the smaller trucks spreading their costs over a larger premium paying base. The bottom line is that "It's all in the numbers."
Dutch
'95 Coachmen Catalina 322XL
F-53 chassis, 460 V8
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mowermech
Billings, MT
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Joined: 06/28/2003
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Dutch_12078 wrote:The reason for the higher rate is likely pretty simple. The folks over in the "Loss Forecasting & Actuarial Dept." say it costs more to satisfy the claims against those trucks than it does the smaller trucks. Part of that higher cost may come from the larger number of the smaller trucks spreading their costs over a larger premium paying base. The bottom line is that "It's all in the numbers."
Yessir, and any statistician worth his salt can make those numbers prove whatever the bosses want them to prove!
Bigger, newer vehicle means it can cause more damage (higher liability rate), and will cost more to repair (higher collision/comp rate).
Therein lies one of the reasons I am quite happy with my 1994 truck and 1995 Class C! (Of course, it also helps that they are permanently registered, and I NEVER have to pay to renew the registration!)
CM1, USN (RET)
'94 Dodge 3500 4X2 CTD, 5 speed, 4.10 LS diff., Jacobs Rambrake, 274,000 Miles
'99 Monaco McKenzie 32' triple slide
'95 Tioga 29H Ford-based Class C
Daily driver: '08 Subaru Outback
Towed: '06 Jeep Rubicon Unlimited/Load Trail 16' flatbed
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Deen
Vancouver, WA
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Joined: 12/07/2000
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arizonadesertbrat wrote:I still keep asking where the thought that past performance is best predicted of future performance went.
I've been asking that for years. A while back the state of WA was considering outlawing the practice of using credit reports to set rates. I wonder what happened to it?
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chuckster11
Idaho
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Joined: 04/30/2004
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The reason these oversize tow vehicles are more expensive to insure may simply be because most auto policies restrict coverage to trucks of 1 ton or under and the only alternative for an owner of a larger truck is a commercial policy which can, because the recreational use isn't defined well under commercial policy ratings, make the rate higher.
Getting insurance for a truck above 350 size can be a chore.
Usually it cost no more or less to repair an older vehicle--body shops do not reduce their hourly rate for a ten year old truck and parts are certainly no less expensive for an older vehicle--unless used parts are used to repair. Older vehicles, because they lack some safety equipment like anti-lock brakes are actually less safe than newer ones.
Newer vehicles only cost more in that category that takes into consideration the expense of a wreck where the vehicle is totaled--then, of course, the claim cost is higher. However, because they are so expensive, new vehicles are rarely totaled--you can do a lot of body repair for $30,000 and up.
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mattfenn
Michigan
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Joined: 04/07/2008
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Most standard auto policies will insure vehicles up to 10k gvw. New vehicles cost more, have less access to other than oem replacement parts, and therefore, are generally more expensive to repair.
There are so many rating factors that go into a premium you would fall asleep before reading through them all. Insurance companies make around 3-7 pennies per dollar profit from premium on auto insurance.
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lanerd
Ridgecrest, CA
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Joined: 03/03/2003
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My best guess would be: Because they can.
Ron
Ron & Sandie
'08 Safari Simba SBD35
Toad: Restored 86 Toy 4x4 P/U
Tow Bar: Sterling
Brakes: Unified
TPMS: Pressure Pro
RETIRED!! How sweet it is....
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