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

[eriehl@email.unc.edu]

It really depends on how you view driving.  If there were no other cars
and no pedestrians, then there would be no chance of hitting a car or
pedestrian, so liability insurance would be free (or cheap).  But if you
look at driving as a privilege, you see a fixed mix of cars on the road
and need to buy insurance so that if you hit one of the other drivers, who
use the road under the exact same conditions as yourself, so can pay for
damages you caused.

Rather than the people who drive fancy cars, I think people should really
be upset with others who run red lights, drive when they are sleepy, drive
under the influence of alcohol, drive their cars like John Wayland drives
his zappy, or drive to fast for conditions.  Insurance is experienced
based (insurers need to get approval for their rates based on the claims
they pay), so these people are the real culprits for higher liability
insurance.

Cheers,
--Eric Riehl


Peter VanDerWal writes:

>[replying to:]
>>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.