QUESTION - Weird quirk in car insurance

Discussion in 'Off-topic' started by Malum Prohibitum, Oct 27, 2018.

  1. Malum Prohibitum

    Malum Prohibitum Moderator Staff Member

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    So I own two SUVs and a car. The car is very expensive to insure, so I am going to leave that out of this analysis for now.

    2012 Denali XL
    2005 Yukon​

    The Denali is bigger, heavier, fancier, and worth way more money than the old Yukon. The old Yukon has just liability insurance, and yet they cost almost the same to insure. So I looked at just liability. I have $100,000 / $300,000 on both for bodily injury. I intentionally carry more than the state-mandated minimum, but it is the same level of insurance for both vehicles, so this is really an apples to apples comparison.

    Premium:
    $72.43 Denali
    $113.76 Yukon​

    Property damage is more for the Yukon, too.

    Why? :confused:

    My name is on the title for both SUVs, so you must assume the driving record is the same for both vehicles.

    The cheaper-to-insure Denali has almost twice as much horsepower, is bigger, and weighs more. It would seem like this one would have higher liability premiums. My old 2005 is not exactly a Ferrari.

    So what is the story here? Anybody have any insight?
     
  2. a_springfield

    a_springfield Well-Known Member

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    Does the Denali have any extra safety features the Yukon does not have (ABS, blind spot warning, collision avoidance features)
     
    Adam5 likes this.

  3. moe mensale

    moe mensale Well-Known Member

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    If that's your annual premium send me your agent's name! :lol:
     
  4. moe mensale

    moe mensale Well-Known Member

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    My 2003 Suburban's total annual premium is about $860 currently. It's gone up consistently over the years and I have no claims and a clean driving record. My guess is it's due to the age of the vehicle. Fewer "safety" gizmos and higher costs for replacement parts.
     
    Last edited: Oct 27, 2018
  5. Malum Prohibitum

    Malum Prohibitum Moderator Staff Member

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    Yes. They both have ABS, but the Denali has all of those extra doo dads.
     
  6. Malum Prohibitum

    Malum Prohibitum Moderator Staff Member

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    6 months, i.e., so twice that annually. Keep in mind that I segregated just bodily injury so that we can compare. There is also property damage, and the Denali has comprehensive insurance.
     
  7. a_springfield

    a_springfield Well-Known Member

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    All the extra doodads will cause a lower premium as they feel they will reduce the chances of you causing an accident. The cost of vehicles and age do not have much effect on liability and bodily injury.
    My 2000 chevy silverado 2500 has liability only and it is more than my 2017 Nissan Sentras liability. It is actually almost the same as the full coverage on the Nissan.
     
  8. Scout706

    Scout706 Well-Known Member

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    Another factor may be the history of all drivers in the particular model
     
  9. UtiPossidetis

    UtiPossidetis American

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    Another may be, didn't look them up, the weight of the vehicles. Heavier vehicles can cause dramatically more property damage and thus carry higher premiums.
     
  10. gunsmoker

    gunsmoker Lawyer and Gun Activist

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    Another factor may be the costs of repair, if you have an accident that doesn't result in a total loss, and the insurance company must foot the repair bill. If you just dinged a fender and broke a headlight assembly in one vehicle, would it cost a lot more to fix? I hear that not all vehicles are equally easy to repair, although I would think that two big American made SUVs would be in the same ballpark on repair costs.
     
  11. gunsmoker

    gunsmoker Lawyer and Gun Activist

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    Is it possible that Yukons are at higher risk of being stolen?
    Do Yukon drivers historically have a record of getting into more accidents or more tickets? If so, this could be caused by the way those vehicles were marketed and sold, perhaps with special finance packages that attracted the lower elements of society to them, whereas the Denali was marketed to a more exclusive audience of well-heeled (and well-behaved, older) buyers?
     
  12. Malum Prohibitum

    Malum Prohibitum Moderator Staff Member

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    The Denali is definitely heavier. It's not even close. It is, however, much cheaper to insure for liability.

    We are comparing liability only, here, and, in particular, bodily injury, so this does not come into play at all on the premium costs listed above.

    The Yukon does not have comprehensive insurance because its value is well within what I can self insure. It has 328,000 miles. The insurance company will just declare it "totaled" and write me a check for a very low value.

    Same thing here. Liability, bodily injury only, is being compared, not theft or collision insurance.
     
    Last edited: Oct 27, 2018
  13. Malum Prohibitum

    Malum Prohibitum Moderator Staff Member

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    Sounds like your experience is similar to mine. There is a part of me that cannot help thinking this is just a way to make money on persons lowering their costs as the vehicles get older and they drop full coverage for liability only . . .

    It does not make sense for me to purchase full coverage on a vehicle for which they would probably write me a check for $1500 if it were damaged in a collision. It also does not seem to make much sense to have liability coverage on the old truck cost almost as much as full coverage on the newer, more expensive Denali XL.
     
  14. UtiPossidetis

    UtiPossidetis American

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    Given all that you have said - shop around is my best advice.
     
  15. Wegahe

    Wegahe NRA Instructor

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    This is my thought. I was with Allstate for 45 years no tickets no accidents. In the end I was paying $450 to insure 2 vehicles every 6 months. I was rear ended while sitting a a red light 4 years ago in my Toyota Tundra. The other driver also insured with Allstate. Allstate paid me just under $700 to repair the damage to my truck. They also offered me $400 to cover medical for a hair line fracture in my neck. The bumper alone ended up being $1,300 just to purchase without repairing any of the other damage or mounting the bumper. I declined the $400 and told them it would cost Allstate a lot more than $400 because I was dropping Allstate. I switched to another insurance company with 2X higher coverage amounts for $325 every 6 months. So far that $400 offer has cost Allstate $3,600 in lost premiums and still going up. My neck healed fine and I have saved $600 over the last 4 years to use toward my medical bills. So actually I'm $20 to the better on the medical already and the amount I am getting by switching is still climbing.
     
  16. a_springfield

    a_springfield Well-Known Member

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    In my case I can understand a little of the difference. The new car weighs under 4000lbs and has a 0 towing capacity. The truck has a gvwr of 10000 and can legally pull another 12500lbs. The truck can have a total weight of 22,500# while the car is at most 4000. The liability of 5 1/2 times the weight plus the chance of cargo falling out is a lot more than the small car. In your case both are full size SUVs that is an apple to apple comparison.
     
  17. rmodel65

    rmodel65 Yukon Cornelius

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    Older vehicle=cheaper price=less experienced drivers=more wrecks?
     
  18. NTA

    NTA Well-Known Member

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    Not sure whether your premiums are annual/semi/monthly but my
    2005 Toyota 4 runner was a little over $600 every six mo.
    traded it for a new Kia SXL couple months back, loaded out suv, and premium went up $100 / mo from 4 runner. Carry $1,000 ded collision on both.

    the weirdest thing is the new (aluminum v6/fwd/donut spare) Kia Sorento weighs only 80# less than the V8 cast iron block, 5 speed big trans, rwd body on frame 4 Runner, full alloy wheel spare.

    discounted for having house ins as well, State Farm
    I shopped around six months ago and found nothing worth switching to but I excluded Geico, Progressive, and Liberty all because of their annoying tv ads/politics.

    I do have to carry max liability in order to be eligible to buy the additional big umbrella policy.
     
    Last edited: Oct 27, 2018
  19. atlsrt44

    atlsrt44 Well-Known Member

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    He only has liability on the older one so that's not a factor. My best guess would be that they consider that vehicle a higher risk (ie there have been more accident nationwide in that model). Car insurance doesnt make alot of sense due to the algorithms we cant see.

    I am glad to hear you carry that level of insurance. My only recommendation would be to go ahead and roll that into an umbrella policy.
     
  20. Nemo

    Nemo Man of Myth and Legend

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    I cannot comment on your current policy. As far a a new one, shop around. I had Esurance and was paying about $125 a month. Got to looking and called Geico for a bid, among a half dozen others.

    Most were in the Esurance range. Geico was $90 a month going to full coverage on an 09 Escape instead of just liability coverage and full coverage (as already had) on a 2013 F-150.

    Moved to Va and coverage costs dropped to $63 a month for full coverage on both vehicles. Commercials can be a headache but pennies in the pocket are a great pain reliever.

    Nemo