Quote:
Quote:
base the premiums off of others who drive the same Make/Model

Of all the crazy insurance schemes, I'd never heard this one before.

This has been the case for all insurance companies for as long as I can remember. I even remember our teacher telling us this in Driver's Ed when I was in high school. I remember it clearly, because when he told the class "if you want to drive a Trans-am or a Camaro, you're going to pay twice as much insurance as the next guy", and every jock in the class moaned and whined.

Quote:
So all the value-conscious normal people who want a 90's Honda are getting punished because of the street racers who also own them?

I don't think there's anything wrong with that pricing scheme. Keep in mind that the street racers are buying the 2-door models and the responsible adults are buying the 4-door models. I'll bet the premiums are different.

But more importantly, the car's make and model has a very high correlation with the amount the insurance company pays out in claims. Certain kinds of cars are safer than others in an accident, thus reducing the amount the company tends to pay out in injury claims. Certain cars are greater theft targets than others, thus increasing those kinds of claims. Certain cars have ABS brakes, again making them safer. Certain cars are very expensive to repair, making the claims more expensive, etc. And yes, certain cars tend to be purchased by people who tend to drive them unsafely.

An insurance company needs to balance its income in premiums with its outgo in claims. They do it by calculating lots of variables, and I think that's a valid variable to put in the equation.
_________________________
Tony Fabris