Insurance rate & Hummer data

[MAC]

Insurance and auto companies collect data from all accidents, defects, repairs, warranty works and claims, which is used to determine the insurance premium of each model of vehicle. I have had cars I didn't think is any big deal, but premium was among the highest for whatever reasons.

In the past months, we have already seen many off road related accidents and damages on this forum, seems like they were covered by insurance or warranty, which is something I did not know. I assume all these must go into national data base to determine the Hummer insurance premium, that is how the insurance business works. This may not matter because a Honda or Toyata is more likely to be stolen.

Just wondering about it because I read so many off road damages here.
Note, this is not a debate about off road or not.

[MAC]

Insurance and auto companies collect data from all accidents, defects, repairs, warranty works and claims, which is used to determine the insurance premium of each model of vehicle. I have had cars I didn't think is any big deal, but premium was among the highest for whatever reasons.

In the past months, we have already seen many off road related accidents and damages on this forum, seems like they were covered by insurance or warranty, which is something I did not know. I assume all these must go into national data base to determine the Hummer insurance premium, that is how the insurance business works. This may not matter because a Honda or Toyata is more likely to be stolen.

Just wondering about it because I read so many off road damages here.
Note, this is not a debate about off road or not.

[argonaut]

Come on MAC, no disclamer will work here... you were definately saying that us offroaders are hurting you soccer mom types(pavement pounders if you prefer). Don't lie to me Mac...

'03 H2 Sunset Orange No mods
'03 BMW M3 Convertible
'02 BMW M5

[RonB]

what insurance companies are you guys using...not liking mine and looking to change horses.

Ron B

[MAC]

argo, I have that last note there, because sometimes some people get defensive about how they play with Hummers, get all red faced jumping up and down. You just sticked your pretty little neck into it, proved my concern was justified. You may not believe it, frankly, I don't give a F what anyone drive or do with their automobile. I ran out of fingers to keep count with the off road damages and accidents reported on this forum, the real surprise is that no one had the guts to talk about it, everyone is affraid of the bullies. Surely you got a logical brain to see that too. This is a just a simple talk about auto insurance. Let's keep it simple.

Note, 3 smiling faces.

[RockYoda]

Its really hard to say. I saw a brand new Tacoma (only 3k on the od) flop on its side. The insurance company (don't have clue as to who it was) not pay a penny. Claimed it wasn't covered under their particular policy. I have also seen the exact oppisite from insurace comapanys. I think it all depends on the type of coverage you have.

Unless you are "blazing" a new trail in the middle of the desert (which is bad, Tread Lighly to keep our trails open) You will most likly be on a "Road" when 4-wheeling. 3n34 (which is good 4 wheeling trail) in Big Bear, CA is actually a non-maintained road. If an accident occurs on this "Road" it would be treated just like any other accident (such as being rear-ended on the I10) This is all basied on my limited understanding of the insurance industry and the California Road system. As long as the road has a name or number reconized by CALTRANS than insurance will cover just like any other road. PLEASE DO NOT TAKE MY WORD FOR THIS. I AM NOT AN EXPERT ON ANYTHING! (expect maybe spanking my monkey but i'm sure there are more experiance people than me too)

[DURAMAX TIM]

Hey Mac around here Deer are the main cause of millions $$$ damage/ year.
Some damage goes over $5000 on tincan cars.
Unless u get one over the hood, I think the brush guard will take most of the hit on the H2 and the repair cost should be fairly low.
I came w/in FEET of hitting a 10pt buck going to the last Hummer Happening.
Maybe our deer kill $$ savings will offset the offroad $$$ insurance pays.
Also don't forget who wins in most fender benders w/ the H2

[Hum2]

Well Mac:

Insurance???, I've seen many a post on premiums. I have one of the worst companies, (Allied) covering my H2 and I am looking for a better deal. I get wacked over $2000 a year for my H2, simply because this company calls it "an unacceptable" vehicle....Hummm, why did they do that when they had no statistics at the time I bought? If you ask me, they are just ripping me off.

The insurance industry plays all over these "so called" statistics...like their recent claim that they need to raise SUV rates because SUV's do more damage to other vehicles when in an accident. Bunk! That would be pretty obvious since they weight more/are larger. But they neglect to point out that SUV drivers tend to be safer drivers because they are generally older people and they don't accelerate/deccelerate like sports car (younger) drivers.

I despise insurance companies and so should all smart Americans, (exception, those in the business of ripping us off)! Have you looked at how much of your paycheck goes to insurance lately...they are taking too much of our money, and not providing us much in return. Take a look around you...how many insurance companies do you see leasing old rundown buildings....probably none, they have some of the nicest facilities (banks and hospitals are another group as well....related to insurance?...Hummm???) And anytime the insurance companies really do pay out, they simply cry out, raise the rates, and build yet another new building. Well at least they keep the office supply places in business with brand new furniture for their brand new buildings.

Yeah, I have other issues here, like when my daughter gets hit by a lady (who thought she was going to be rear ended at a stop light, so she jetted into the intersection) and even though the police report states it was caused by the lady, I get socked paying the bill for both cars. What a crock!!! Or like when I have to sue my own company to pay on an "underinsured" claim because the other drivers insurance was insufficient to cover the bills! What the heck do I pay that premimum for anyway!

I suppose the next step will be to increase your premium if your vehicle ever touches dirt, or at least not pay on those claims.

Alec is correct, the number of off-road claims are minimal, and generally don't involve other vehicles/property. But you can bet the insurance companies will have some statistic...like when an off-road accident occurs, it causes more damage than your typical mall parking lot accident! DUH!!!

Ric

OMAHOG/IHOG
Hum2@cox.net

[Hum2]

Good point (statistic) Phil!



Ric

OMAHOG/IHOG
Hum2@cox.net

[Buckeye Hummer]

We pay aroun $1400 for two vehicles H2 and Tahoe through GMAC (MIC) insurance. I did get employee discount though and we have no marks on our record and no claims (YET!)

[argonaut]

You are really getting ripped off with the 2k... I am under 25 and have the H2 insured for 1400. Plus I have three tickets and two claims on my record. The flip side is that I couldn't get insurance on my Bimmers, so I had to put them jointly in my dad's name and insure them through him. Quite a PITA if you ask me. This may, my rates go down big time as I hit the 25 level for the H2, probably around 300 bucks or so because the tickets will be off my record too. I agree that the insurance industry is a huge rip off, and that the effect of offroading claims will be minimal compared to the soccer mom's parking lot fender benders. I have a bit of damage on my truck, but I have no plans of claiming it. That would screw my premium up. Likewise I think the vandalism issue is negligable as well.

Mac, note I was joking in my previous response. Just trying to get your goat, that is all.

'03 H2 Sunset Orange No mods
'03 BMW M3 Convertible
'02 BMW M5

[RMST]

Has anyone had any problems with warranty issues related to off-roading?

[Hum2]

Just got back to this thread. Thanks for all the input...I knew I heard laughing when I hung up the phone.

Even funnier....I just called to add a new (used) vehicle to our policy for my daughter (21). Going from a 95 Corsica to a 01 Rio...the rate jumped up $600...why...because they say this vehicle has a higher roll-over possibility than does the Corsica. I said, "this is not a race car, you can barely go fast enough to turn a corner"!

I'll be looking for different insurance again, soon.

Sorry, no off-roading accidents other than paint scrapes/scratches....Hummm, maybe I should make my stupid insurance company repaint the H2, then dump them?!?

Ric

OMAHOG/IHOG
Hum2@cox.net

[Albie]

Insurance..... Being mexican leaving in Socal didn't think I needed it...LOl

1500 and just turned 25.
I pay 1600 for a 2002 X5
and 500 for my 92 taco( sr5 didn't have taco's back then)

[PARAGON]

I did a little research in the recent past that crossed paths with this and other auto insurance issues. My 2001 Yukon XL Denali and my year old H2 have roughly the same insurance costs. They may differ by about $200 annually and I am with State Farm with no culpable accidents but I do have a ticket for speeding on my Harley.

The biggest payouts for insurance companies are more related to personal injury rather than vehicle damage. If you look at the break down on your insurance you'll probably see it reflects this. Some insurance companies try to justify higher premiums on SUV's because they inflict more damage on the occupants of other vehicles in crashes and therefore have to pay out more. I think it's absurd since you have never seen this same line of thinking with pickups simply because they are viewed as more useful vehicles and SUV's are deemed to be simply driveway bling-bling.

I think it is far-fetched to think that one's H2 insurance rates are affected by claims resulting in off-road accidents. I have always owned a 4WD vehicle since I was 15 and have always gone off-road. Going off-road is not something new and if there were effects from off-roading accidents on insurance costs it would have already been reflected in the current premium amounts. I think it's logical to assume that the percentage of owners of H2's who off-road would be in the same ball-park as the percentage of owners of most other off-road capable 4WD vehicles. Insurance is a numbers game and if the companies get together and think they can charge more for one vehicle (because you have to have insurance), even though there is no reason that their costs would be higher, they can gouge the consumers and make them pay whatever they want because its a necessary evil and the consumer wants the vehicle.

[MAC]

As a long time stock holder of Berkshire Hathaway(Warren Buffett), which is largely an insurance holding company, among other things, I read about the insurance business in the annual report. By and large, insurance by itself is not a profitable business, the goal is actually the cash flow it generates. i.e., the premium collected today will enventirally be paid out in claims, but before that money is evitablly gone, insurance companies make money on that money. Since we are talking about billions and billions, the gain is substantial.

It is correct to say it is a numbers game, they must calculate the risk based on available data. Premium from everyone covers the claims from few. For a new model, the data is limited, except the basic known facts, such as HP, weight, categories, etc. As years go by, more data is known, such as high thieft rate, rollover claims, high damage cost, etc. I have no idea if Hummer's offroad damage rate is higher or less than other SUVs, except what I read here. Such data will logically flow into the data bank, which all insurance companies share, that eventually form the basis for future premium calculation.

Since insurance companies share data and DMV keeps record insurance can check at will. If one makes damage claims then switch insurance carrier, as someone above suggested, the claim record will follow that driver/owner.

We may think insurance companies are evil, I certainly think that way sometimes, but Peter(San Diego) rolled his brand new H2 a year ago, got a brand new H2. Many others on this forum had thousands $ in each claim. Where did the claim payments come from? from everyone who has not made a claim. That score must be settled sooner than later.