Do insurance groups really bear any relation to the true risk of the vehicles?
For a 25-year-old newly qualified driver, the quote for a Volvo S40 1.6 S is £1000. For a Volvo S80 2.5 T S, it is £1,950 (other details identical). Insurance groups are 7 vs. 15. I can't see there is that much difference in the vehicles to justify the extra cost.
If you have a high insurance group you basically have to eat the cost of most types of damage to your car due to the effect on the NCD. Whereas people getting in lots of scrapes in their small city cars won't mind making a claim because their insurance only costs £200/year.
|
It gets better. From Jan. 2008 insurance companies are introducing the new 50 group system.
The existing 20 groups will be phased out by summer 2008.
Diesel cars will no longer have their performance judged on 0-60 times but torque to weight ratio.
Does this mean 4x4 insurance will be cheaper as they tend to weigh more thereby diluting the power to weight ratio ?
Coincidence this has been announced as the £1.5bn flood bill has landed on the insurance companies door mat ?
|
Coincidence this has been announced as the £1.5bn flood bill has landed on the insurance companies door mat ?
I've been aware of this for at least six months, so no conspiracy theory - one site I went on just after finding out allows you to compare old and new groups.
|
I've been aware of this for at least six months so no conspiracy theory - one site I went on just after finding out allows you to compare old and new groups.
I realise something like this couldn't be introduced overnight, it would take a decent programmer maybe two days to change the model :)
Just unfortunate timing to be made public for the insurance companies.
|
>Just unfortunate timing to be made public for the insurance companies.
It's been public for quite a while, Gmac;
www.honestjohn.co.uk/forum/post/index.htm?t=49437&...f
|
|
|
In response to your original posting flunky, the difference in the vehicles will be somewhere along the lines of S40 1.6S has four cylinder normally aspirated engine producing around 110 - 120bhp. the S80 has a five cylinder 2.5 litre with turbo producing more than 200bhp. 200bhp for a newly qualified driver would be considered quite a risk by an insurance company.
|
|
Diesels and 4x4s will become more expensive under the 50 group system - it'll take the weight of a car into account and the damage it causes to other vehicles, property and pedestrians.
|
|
Repair costs and level of vehicle security also come into the calculation.
|
|
|
|
Volvo S40 1.6 S ...Volvo S80 2.5 T S ... I can't see there is that much difference in the vehicles to justify the extra cost.
Am I missing the point of the question here?
The latter is a larger, far more expensive vehicle with a far bigger engine and is much faster.
What differences between two cars would you expect to make a difference to the insurance price?
|
snipquoteThe latter is a larger far more expensive vehicle with a far bigger engine and is much faster.
It's 50% bigger engine, but theft, running into people at roundabouts, etc. surely isn't increased by a factor of two. I'd expect higher insurance costs, but not double.
|
It also depends on the cost of typical body parts etc. Usually the insurers look at a basket of parts eg Front wing, bumper, headlight etc as part of the assessment of the likely cost of repairs. There might be anomalies in the various costs of these between smaller and larger models.
Sometimes these individual parts on some cars can be daftly expensive pushing up the potential payout. I remember having a Honda Accord from 15 years ago where the list price for a radiator fan was over £400!
Also sometimes the way a car is constructed can cause added expense for insurers in crashes. When I worked in insurance I went out with a motor engineer doing inspections and it was surprising how when looking at cars of different makes in similar levels of impact some required alot more stuff to be replaced. Some cars pack alot of bits and bobs very close behind bumpers/wings and these can get easily damaged. Others keep more of that stuff out of the way on the bulkhead.
|
|
I don't suppose an S80 bumper costs much more than an S40 one, but isn't a big part of an insurer's calculation the people likely to be injured in an accident? The S40 is likely to be driven by someone on a moderate income; the S80 driver might be a director on a six-figure salary, who might also be carrying three similarly high-powered types. Suppose the insurer found itself liable for loss of income after an accident, which claim would cost more to settle?
|
The S40 is likely to be driven by someone on a moderate income; the S80 driver might be a director on a six-figure salary who might also be carrying three similarly high-powered types.
Doubt many directors on six-figure salaries drive S80s somehow. Well I do, but it's because I'm cheap, and so are the used ones.
|
|
|
|
