Insurance

[Th3Franz]

Yeah I think insurance will be decent, at least I'm hoping so. The Legacy is still considered a "family car" more so than a WRX right?

[SUBE555]

As far as I know the Legacy is a family car still. Actually, I don't remember if it was before in the USDM, but in Japan, I think the Legacy just moved from the compact to midsize market (they were a smidgen under the bar IIRC.) I can't remember how they figure over here though if they were mid size or compact. Either way, I'd say it's still a family car or at least moreso than the WRX, still at the 2.5GT levels. As soon as the new GT comes out I will need to check on those facts.

[ha-evolution]

The largest factor in insurance rates is claims history. Other factors that affect rates are place of residence and credit history. I would guess that rates for the current Legacy aren't all that bad currently. If claims prove to be higher on the new model than the old then rates will go up.

[GBY]

[quote name='ha-evolution']The largest factor in insurance rates is claims history. Other factors that affect rates are place of residence and credit history. I would guess that rates for the current Legacy aren't all that bad currently. If claims prove to be higher on the new model than the old then rates will go up.[/quote] By credit history do you mean how long the policy has been in place without a claim?

[ha-evolution]

No, I mean your actual credit history. It's been statistically proven to correlate to your risk factor (at least that's the industry's claim). Or to put it simply - people who have bad credit have more accidents. You are correct though in assuming claims have an impact on your rates also. That's handled differently by different insurance companies but overall you would definately have a lower rate if you hadn't filed a claim or had a speeding ticket in the last three to five years (depending on the insco) than if you had.

[GBY]

[quote name='ha-evolution']No, I mean your actual credit history. It's been statistically proven to correlate to your risk factor (at least that's the industry's claim). Or to put it simply - people who have bad credit have more accidents.[/quote] Okay, so you have good credit, you have a good job, all the toys etc. but then you loose your job and miss a couple of payments. Now you have bad credit and are more likely to crash your car :roll: I can understand basing cost on age but that's ridiculous.

[ha-evolution]

It's not any worse than paying high rates for a certain model because other people have a habit of smashing them up. Here is Progressive's explanation: [url]http://www.progressive.com/shopinfo/credit.asp[/url]

[akm3]

Here is my theory: People who have good credit have the financial means to 'take care' of smaller accidents that are there fault without going through their insurance company. If they don't make a claim . . . e.g. Lets say I back into a guy and offer for him to take it in, get a quote, and I'd pay for it (and he does) If I have him sign a form releasing me of any further liability for the accident, I'm legally protected (?). My insurance company never hears about it! Am I good driver? Obviously not! Does my insurance company like me? Of course, I'm saving them money! People who have the resources to do this would tend to be folks with better credit. Anyone agree/disagree? -Allen EDIT: Also, I *DO* believe that someone who runs their financial life responsibly/conservatively will probably also be a more conservative/responsible driver! In the example of someone with good credit loosing their job and missing payments, if they were REALLY running their financial house conservatively/responsibly then loosing their job would STILL not put them in a position to miss payments. I think the insurance companies got this one right.

[kage]

I think you've more or less hit it on the head Allen. The financial responsibility thing is probably much more of a factor than the small claims bit, but only those on the inside know for sure. The simple fact is that they see a strong correlation between credit worthiness and claim history. Another side factor: people with poor credit may be more likely to be desperate and try to commit insurance fraud.

[GBY]

[quote name='kage']Another side factor: people with poor credit may be more likely to be desperate and try to commit insurance fraud.[/quote] I didn't see the "j/k" after that one Kage but you are kidding right? Bad credit is not always the fault of the person that has it, take a divorce situation for example, it's a good way to get back at someone....

[ha-evolution]

The analogy that most likely applies is that "in general" people who are careless about their credit are also careless with their vehicles and end up being a higher risk to insure. Of course there are exceptions and there are factors beyond one's control that can lead to having a bad credit history. I would venture to guess that this is the exception however (at least that's how the insurance industry sees it).

[kage]

[quote name='Gumby'][quote name='kage']Another side factor: people with poor credit may be more likely to be desperate and try to commit insurance fraud.[/quote] I didn't see the "j/k" after that one Kage but you are kidding right? Bad credit is not always the fault of the person that has it, take a divorce situation for example, it's a good way to get back at someone....[/quote] Smilie was MIA on that one.