Anyone in Insurance?

[Horse]

Riddle me this batman..

I can understand purchasing Comp & Collision for each vehicle as needed (thank Gawd I just have one...and it's paid for).
But why on God's green Earth, do we pay Liability for every automobile we own? Are we not insuring that we, the driver, doesn't do something stupid?

Oh yeah, I forgot, it's the new age..."It wasn't MY fault, it was my car's fault."

 

[cvmfour]

I'm not in the Insurance business but here goes:

We got to have liability because a lot of ass hats were driving around and hitting people without insurance. And that leaves the victim to have to pay for it out of his pocket or claim it on his insurance and his rates go up. So most states now require every driver to have liability on their car.

 

[Horse]

I agree, we neeeeeed liability coverage. BUT, shouldn't we be insuring the driver? And it applies to one car or 20 cars...

 

[PuroBrat]

I agree Mark, there really is no reason for Liability to be required on every car, as long as the drivers are covered. However, the Insurance Robbers..er...I mean Agents stand to loose too much of their income if that was ever made the rule. It'l never happen.

 

[CoventryCat86]

Mark,

I know exactly what you're saying. I have a couple of calls into some friends in the insurance business but I think the logic is something along the lines of the CAR is insured becasue it could be driven by another driver.

Liability premiums vary per car based on what kind of car it is (Corvette or a Chevette, big difference in liability premuim there), whether or not is has ABS brakes, air bags, etc.

There are acutally some classic car insurance companies that realize the fact that a collector may have 20 cars but can only drive ONE AT A TIME (and they adjust the liability premiums per car accordingly) which is exactly what your point is.

When I find out more about the insurance companies explanation of this, I'll post back

 

[Horse]

Liability premiums vary per car based on what kind of car it is (Corvette or a Chevette, big difference in liability premuim there), whether or not is has ABS brakes, air bags, etc.

Here again...the way I see it anyway (yeah I know, who asked you (me)) it shouldn't matter what kind of car it is for liability... if you're an idiot driving..then you're driving history should push your rates up. Sure, a CorVette should cost more for Comp and Col than the Chevette..but I don't see where liability should depend on anything other than driving history and demographic info.

 

[CoventryCat86]

shouldn't matter what kind of car it is for liability...

Ah an once again I agree with you completely but I do know that one of the factors that they base liability premiums on is indeed the type of car, it's equipment, etc. because their statistics show that people who drive Corvettes cost the company more in claims than people that drive Chevettes.

I totally agree that this is unfair as I know plenty of people who are responsible that drive sports cars and plenty of irresponsible people who drive econoboxes and get in accidents.

 

[gibu]

I seen a few years ago someone advocating a liability tax charged at the gas pumps. For a few cents per gallon everyone would automatically be covered. Plus, if you don't drive much you don't pay as much as someone that drive a lot. Made sense to me, but I wasn't sure how it would work in practical day to day terms.