why are honda so pricey on insurance?

insurance groups are so high compared to others in their class - why?

cheers

 

www.esurance.com




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Well its a combination of things. First, insurance companies set their
rates based on the accident rates of the vehicles. Since Hondas are
frequently the best sellers in their class, it stands to reason that more of
them will be involved in collisions. The insurance companies use this as an
excuse to charge more by arguing that they are a higher risk vehicle due to
the number of accidents. (Gotta love how stats can be twisted to say just
about anything.) Another reason is that Hondas (mostly Civics and older
Accords) are always on top of the list for stolen cars.

 

Also, Civics and Preludes in particular are very popular among the younger
crowd. Many of these younger kids like to "rice" them out with excessive
body add-ons and drive the hell out of them.

 

I was told that ONE of the factors in insurance industry pricing ratings
was the fact that Honda Civics with their VTEC engines are the most
widely modified vehicles used in the legal and ILLEGAL street racing
circuits.A lot of 18-35 year olds like to disassemble and reassemble
them into quarter mile racing machines.And they are the most
inexpensive(especially used) for this purpose.And a lot of accidents
happen in illegal street racing.

 

OTOH, a stock LX model with the non-VTEC engine is cheap to insure
as nobody touches them for such purposes.

 

I disagree. Mine is very low. 550$CAD for an Accord EX-L 1999.

 

Believe it or not, they're on the top of the list by sheer numbers,
because there's LOTS of them out there. By percentages only, Honda
and Toyota are down in the 80th - 100th place. Geo Metro is 1st or
2nd. I'm not kidding by the way.

 

Interesting comment. I am 63 with a clean driving record and no accidents
(yet). My 01 Prelude insurance is over $1600 per year, more than twice that
for my wife's Pilot. The problem is that I have a 24 year old on my policy
with a shaky record, even though he does not drive the Prelude -- has a
$3,000 10 year old 4 door sedan. BTW liabilty on his car (which is all we
carry) is almost $800.00 per year. The insurance company figures that if he
borrows the Prelude he will undoubtedly try to race someone -- and they are
absolutely correct.

 

When I was recently getting insurance quotes for cars that I was thinking
about buying, the representative from my insurance company told me that
they charge more to insure Civics than Accords or TL's because the claim
rate is higher for Civics. The claim rate is higher because younger, less-
experienced drivers are more likely to buy Civics.

Why an older driver who buys a Civic should be penalized, I don't know.

Andrew

 

"Why an older driver who buys a Civic should be penalized, I don't know"

because statistics are evil!

I never understood why, when I was 10 miles outside od DC my insurance
was less than when I moved to EBF (that's East Bum F*ck), NY... Should
have dropped in my mind (plus I passed one of those imaginary milestones
by turning 25).

 

I think that's a *BIG* presumption on the part of the insurance company:
"if this happens and that occurs, something else *might* happen". When our
kids started to drive, it was explained to me that if a car was assigned to
them it would not affect the insurance on other cars... but if a car was
not assigned to the youthful drivers, I'd have to pay insurance for them on
the most expensive car we owned.

I'm not sure whether that rule was a legal state(NJ) mandated one or if the
insurance companies could set their own rules. In your situation, I'd look
for a different insurance company to see if there are more favorable rules.
I'll add that, when the kids finished college and moved out, I got really
pissed when the insurance company asked for their new addresses - bloody
nerve!

Rgds, George Macdonald

"Just because they're paranoid doesn't mean you're not psychotic" - Who, me??