weird car insurance question

Okay, so maybe this is a dumb question..... woke up thinking about this today...

I bought my Mustang GT new in 05. My insurance ( on it with 3 other vehicles and life ins) was $187/ month.

Now it's almost 2013....and my insurance is $189/ month on the same vehicles.

I've kept the same full coverage on the car, but should the cost of insurance go down as the value does? Meaning, if I totaled the car in 05, they'd have paid me north of $25k, but if I total it today it's probably more like $12k.

So why does it cost me the same? or am I getting screwed and never realized it?

The real risk isn't in the value of your cars, but in the liability for what you might hit, and the damage and injuries that you might cause. The coverage for your own car is a small part of the overall risk picture.

Also, some cars cost more to fix and have higher collision rates. My 95 Trans Am was this way, collision was 2/3rds of the bill. Luxury cars are the worst, but your Mustang may fall into this as well. One reason I love cheap older cars, lower insurance and no need to carry collision insurance, they usually would end up being totalled due to age anyways (when in an accident).

The answer is probably that rates have been inflating like everything else. I'd agree that sounds like a lot, given the decrease in value of the collision/comprehensive coverage over the years. Consider when it becomes more sensible to self-insure. If you still have a loan, that's probably out. But when the annual premium passes 10% of the value of the car, I drop it. I keep uninsured motorist coverage, of course. That's usually pretty cheap.

yeah, I thought about inflation, increasing premium offset, etc.... but still. I KNOW it's cheaper to repair it now than when it was the first year of a new bodystyle.

I do see what you mean about insuring liability to other motorists...that makes sense...what with the legal climate the way it is

it is just one of those weird things. my Saab 900 I had (2.1 engine) was 20 dollars more a month to insure than my 318ti.. my Volvo 850 is cheaper than both of those cars

Liability is the main cause of increases. Read your whole policy an you will see where the increases are.

When you get an insurance policy, statistically chances are that you're being screwed, that's how the business works. The only question is how hard

Inside sources say prices are unfortunately going up. I only carry liability unless the cast isn't paid off.

I just got stung.. dropped the BMW because it is unsafe to drive and just have the volvo. Both cars cost me around 70 a month to insure for liability, comp, and the regular dismemberment stuff... Dropping one car should lower my bill from 150ish a month to 70ish, right? WRONG!. I lost a "multicar discount" that brought it up to 100ish a month...

The biggest cost for insurers is a lawsuit and medical cost - often the car replacement is a relative drop in the bucket.

when I had my pathfinder and lived in the country, I had full coverage with progressive on the pathfinder it actually lowered my bill to add my '77 f150 to it with liability only. then I also added my '78 f150 to it and it was like $10 extra every 6 months.

Now, I have full coverage on my excursion with geico and to add liability only on the 78 F150 is like $20 extra every 6 months, but I also live in a slightly more dense area now (across the state).

mad_machine wrote: it is just one of those weird things. my Saab 900 I had (2.1 engine) was 20 dollars more a month to insure than my 318ti.. my Volvo 850 is cheaper than both of those cars

this reads like an algebra test. a SAAB costs $20 more than a 318ti, how much does a volvo 850 cost?

mad_machine wrote: I just got stung.. dropped the BMW because it is unsafe to drive and just have the volvo. Both cars cost me around 70 a month to insure for liability, comp, and the regular dismemberment stuff... Dropping one car should lower my bill from 150ish a month to 70ish, right? WRONG!. I lost a "multicar discount" that brought it up to 100ish a month...

Weird......I'm at $71/mo for the '91 sho, '01 focus, and comp only on the ti and '95 sho........As a riddle me this on the quote add on for that '99 f350 4wd, it added $9.xx a month to my premium......I love erie. Also, 26, single, 1 at fault, no tickets(that they can find)

Mine is the drawback to living in the Garden State. Not only does NJ mandate a certain policy (which means the insurance companies can charge what they want because you HAVE to have it) but with the densest populated state in the country... it is people people everywhere.. and I do not even live in the most populated area