Still debating V4s vs. V4 SP

My situation IS typical

My 2017 $100k Maserati Levante cost me $140/mo for full coverage 100k/300k with $500 deductible in 2017 and dropped to $120 last year before I got rid of it and now my 2021 $50k Tesla Model Y costs me $200/mo to insure with $1k deductibles. Why else would my current car at half the price of my previous car cost more to insure? This is the same for motorcycles. Some insurance companies cost goes up based on engine cc size for motorcycles. Others don't and base it strictly on how likely that model is stolen.

double0 said:

My situation IS typical... Why else would my current car at half the price of my previous car cost more to insure?

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Why? I don’t know. Consider...

There are a few main actuarial determinants of risk (i.e. the likely cost to the company to insure a vehicle). They include:

1. the vehicle’s replacement value
2. how often a particular make/model is stolen
3. and how often a particular make/model is involved in an accident requiring a payout by the insurance company

How is it typical then, that a more expensive vehicle represents less financial risk to the insurance company, and is cheaper to insure?

craig bush said:

Your situation is not typical. I’m no subject matter expert, but msrp normally has a significant impact on insurance cost. If you’re carrying comprehensive (i.e. full coverage), then msrp impacts replacement value, which is reflected in more expensive insurance. Generally, an insurance company isn’t gonna charge the same to ensure a $5,000 and a $50,000 vehicle.

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Actually no, my insurance was the same on my 959 as it was on my Final Edition.

1299rFE said:

Actually no, my insurance was the same on my 959 as it was on my Final Edition.

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Anecdotal data points can be meaningful, but they are what they are, and an N of 2 or 20 or even 200 on an online forum is relatively insignificant compared to tens of millions of cases nationwide.

Maybe one of you can explain how an insurance company stays in business selling insurance coverage without concern for vehicle replacement value? Are you asserting that they’re willing to routinely accept the same monthly premium payment for a $5,000 vehicle as a $500,000 vehicle despite the hugely different payout in case of a total loss? If so, how does that make sense?

When I asked how the heck this is, they explained that the amount of claims on a Panigale was insignificant in comparison to a more affordable bike. In the example they used GSXR, a lot of the younger demographics will purchase these vehicles and crash and total out these vehicles. The typical Demographics that purchase and own a Panigale do not have the same percentage of claims. The difference in price in insurance does not change when a risk level is nominal.
You can look at this as a 959 owner and understand you are paying more per dollar in value and one who owns an R will pay less dollar per value.
This was not a small time insurance company.
It also could be because I had a squeaky clean record and perhaps because of my record the determination between one vehicle and the other in combination with statistics didn't warrant a higher insurance premium.

I appreciate that insight, and I acknowledge that that phenomenon (impact of large numbers) is certainly a relevant factor in determining insurance cost. But I have had detailed discussions with insurance underwriters as well, and have been told repeatedly that replacement value is one of the most important factors.

Consider my circumstance - I’m 49 years old, live in central Texas, and have a totally clean driving record (zero points). Geico charges me twice as much to insure my 19 v4 as they did my 03 gsxr 1000, and even more for my 15 panigale R.

I pay roughly the same amount for each of:

VW Jetta diesel high mileage beater
BMW 535
Panigale V4

My broker told me that liability claims is where the bulk of their payouts go.

Collision, fire and theft combined only account for ~20% of my premium.

The replacement cost of the vehicle is peanuts in comparison to what the insurance company is on the hook for if you get seriously hurt or sued for running over your neighbours kid.

burton said:

... The replacement cost of the vehicle is peanuts in comparison to what the insurance company is on the hook for if you get seriously hurt or sued for running over your neighbours kid.

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That’s a good point. Any idea why Geico charges me twice as much to insure my v4 as my gsxr 1000?

Also, consider this statement:

“The car you drive – The cost of your car is a major factor in the cost to insure it. Other variables include the likelihood of theft, the cost of repairs, its engine size and the overall safety record of the car. Automobiles with high quality safety equipment might qualify for premium discounts.”

From:

https://www.iii.org/article/what-determines-price-my-auto-insurance-policy