Does anyone know how insurance companies determine their rates?

amdhunter

Lifer
May 19, 2003
23,332
249
106
This is in New York City...

I am really pissed off right now, as I found out a friend who lives in East 10th st (ave A, just outta the projects area) who drives a 2005 RSX, has 2 points on his license (disregarded stop sign), and only been driving for 3 years...only pays $211 [full coverage] a month for insurance. He also has issues with debt.

Whereas, I've been driving for 5 years, no points, 1 no-fault accident which was under $300 damage (accident happenned after I paid insurance this year.) I live in the Bronx, in a not-so-bad area. His area has a higher theft rate than mines, and is near, but not in the projects [public housing]. My credit is pristine. I pay $384 month for full coverage. I drive a 2006 Civic LX.

I don't get how this is possible that I pay so much more than him? Does living in a nice-ish area in Manhattan matter that much? I am also 31, while he is 26.

We both signed up for our policies online. I got much higher quotes in person, and through other companies...
 

Exterous

Super Moderator
Jun 20, 2006
20,535
3,675
126
Sounds like you need to shop insurance companies. When I did they varied by as much as $1,000 a year. Are they through the same ins. co?
Is the other person the same gender?

Edit: Also IIRC the Ins CO. has to request a drivers record of you so even if you get a ticket and points on your licensee they won't necessarily be reflected in your Ins rates.
 

radioouman

Diamond Member
Nov 4, 2002
8,632
0
0
You do have a slightly newer car, and one that is probably more targeted. (RSX isn't as popular for thieves as the old Integras were, as far as I know.)

($160 every SIX months for my truck, and just over $200 every SIX months for my Sebring convertible.)
 

amdhunter

Lifer
May 19, 2003
23,332
249
106
Originally posted by: ScottSwingleComputers
Wow...I pay $100 month for a 06 civic.

Yeah, it's retarded. I know. I don't get why I get screwed so badly.
 

amdhunter

Lifer
May 19, 2003
23,332
249
106
Originally posted by: Exterous
Sounds like you need to shop insurance companies. When I did they varied by as much as $1,000 a year. Are they through the same ins. co?
Is the other person the same gender?

Edit: Also IIRC the Ins CO. has to request a drivers record of you so even if you get a ticket and points on your licensee they won't necessarily be reflected in your Ins rates.

I shopped around. Trust me. Allstate wanted $8000 a year from me for some odd reason. (Actually a bit more) and Progressive was cheaper, but only if I chose liability only. I guess living in the ghetto really matters. :( The other person is a young guy. The Allstate agent I went to even went so far as to recommend I insure my car under my neices name. It would have been about 2 thousand less.

I am single by the way, the other guy is married with no kids. His wife does not drive. Would that matter much also?
 

amdhunter

Lifer
May 19, 2003
23,332
249
106
Originally posted by: z0mb13
why do u need a car in the NY area??

I go out a lot. I hate public transportation, and take a lot of trips + I like the comfort of hanging out with friends in your own vehicle (or theirs.)

I put 1000 miles on my car in one day on two occasions, and avg ~1000 miles a month. I really put the car to use, so it's not just sitting pretty doing nothing. I'd spend way more on transportation, than I would on gas. (Although insurance kills the deal.)
 

Gooberlx2

Lifer
May 4, 2001
15,381
6
91
Depends on car, area and insurance co.

I have Allstate and my fiance and I pay ~$55/mo on my '05 CRV. But we pay ~$127/mo on her '06 Mini Cooper convertible. Oddly enough, our rates went a tiny bit down when we moved to the inner city from the burbs we were in before. Their boundaries just a just very specific thing....our renter's went up though.
 

Gooberlx2

Lifer
May 4, 2001
15,381
6
91
Originally posted by: amdhunter
I am single by the way, the other guy is married with no kids. His wife does not drive. Would that matter much also?

Yes, being married gives a big discount. They probably have other things on the policy like renter's/home, whatever. So they're getting a "mutiple policy" discount as well as a marraige discount.

When my agent "married" my fiance and I, in addition to both our cars and renters being under them, we got about a 25% discount on the 6-month premium, maybe more but I can't quite remember. Add in the fact that his wife doesn't drive, then she's not a liability on the policy (but won't be covered if she's found driving and causes an accident). So he gets all the discount of being married, but none of the hit from having a second driver on the policy.

Also, in your case, the accident, no-fault or not, probably hurt you. Even if he's got 2-points his insurance co may not know, and if he's got no accidents then his record is effectively clean with them.
 

J3S73R

Senior member
Jan 24, 2000
230
0
76
Originally posted by: amdhunter
This is in New York City...

I am really pissed off right now, as I found out a friend who lives in East 10th st (ave A, just outta the projects area) who drives a 2005 RSX, has 2 points on his license (disregarded stop sign), and only been driving for 3 years...only pays $211 [full coverage] a month for insurance. He also has issues with debt.

Whereas, I've been driving for 5 years, no points, 1 no-fault accident which was under $300 damage (accident happenned after I paid insurance this year.) I live in the Bronx, in a not-so-bad area. His area has a higher theft rate than mines, and is near, but not in the projects [public housing]. My credit is pristine. I pay $384 month for full coverage. I drive a 2006 Civic LX.

I don't get how this is possible that I pay so much more than him? Does living in a nice-ish area in Manhattan matter that much? I am also 31, while he is 26.

We both signed up for our policies online. I got much higher quotes in person, and through other companies...

Bolded why it is that way probably. Where you live can make a HUGE difference... especially in NY
 

amdhunter

Lifer
May 19, 2003
23,332
249
106
Originally posted by: J3S73R
Originally posted by: amdhunter
This is in New York City...

I am really pissed off right now, as I found out a friend who lives in East 10th st (ave A, just outta the projects area) who drives a 2005 RSX, has 2 points on his license (disregarded stop sign), and only been driving for 3 years...only pays $211 [full coverage] a month for insurance. He also has issues with debt.

Whereas, I've been driving for 5 years, no points, 1 no-fault accident which was under $300 damage (accident happenned after I paid insurance this year.) I live in the Bronx, in a not-so-bad area. His area has a higher theft rate than mines, and is near, but not in the projects [public housing]. My credit is pristine. I pay $384 month for full coverage. I drive a 2006 Civic LX.

I don't get how this is possible that I pay so much more than him? Does living in a nice-ish area in Manhattan matter that much? I am also 31, while he is 26.

We both signed up for our policies online. I got much higher quotes in person, and through other companies...

Bolded why it is that way probably. Where you live can make a HUGE difference... especially in NY

Yeah, I am positive that my area is killing me. He pays way more in rent than I do at least. :)
 

bucwylde23

Diamond Member
Apr 21, 2005
4,180
0
71
I was paying $170 a month for a 2003 Toyota Celica, 2000 Mazda Protege, and a 2004 Subaru WRX.

I sold the WRX and now only pay $110 a month, and I just had an increase to my rates because of losing my student discount.

I am insured through geico.
 

z0mb13

Lifer
May 19, 2002
18,106
1
76
to summarize from all the facts above:
- you live in bronx
- you have a newer car
- you are single, ur friend is married