Re: Different Insurance companies, different approaches (!?!)

["Peter VanDerWal" <peter_v@primenet.com>]

>Consider a ford vs BMW. Small accident worth about 1000. but since it
>is BMW they demand 5000. to fix it. THIS IS WRONG!!! It is NOT MY
>obligation to pay 4000. EXTRA to fix a fancy car.
>You INSURE AND PAY for your expensive car - YOU PAY the BIG INSURANCE
>rates - not me with my ford. I AM IN EFFECT SUBSIDIZING YOUR EXPENSIVE
>CAR's insurance. This is very wrong and should never have been allowed
>in the first place.
>


    I don't think this is how it works.  From what I understand if you pay
for minimum liability only insurance it's based on; your driving record,
your age and sex (statistics), how much damage your car can do (engine size
and size of car) and not how valuable your car is.  Liability only for a BMW
and an Escort is about the same.
    When you pay for full coverage you are paying to have the car fixed
when: you get hit by an uninsured driver, when you are at fault, natural
causes etc. not to fix the little escort you hit, that's covered by the
liability part of the insurance.