This just kills me with auto insurance

Discussion in 'Business Operations' started by DFW Area Landscaper, Jan 15, 2007.

  1. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    Insurance companies drive me nuts.

    We bought a brand new Expedition, fully loaded for $32K (ttl included) a year ago. A few months later, we bought a brand new F-150 for the landscape business, for $16.8K (ttl included).

    To insure the Expedition, we pay $514 per 6 months. To insure the F-150, we pay $484 per 6 months.

    $30 more insures twice the vehicle. I mean, if the Exped is totalled tomorrow, the price to replace is TWICE that of the F-150, yet the premium is only $30 more.

    Here is the break down:


    Everything else is the same, such as liability, uninsured motorist, PIP, etc. I don't get it.

    DFW Area Landscaper
  2. Allure

    Allure LawnSite Senior Member
    Posts: 426

    the type of vehicle is a big factor in determining cost.
  3. tthomass

    tthomass LawnSite Gold Member
    from N. VA
    Posts: 3,497

    Rounded figures but only a few bucks difference really:

    '02 International 4300 (26,000 GVW) $450
    '02 Chevy 2500HD $450
    '99 Civic SI $900

    There is a bit of difference in my trucks vs my cars........all are full coverage, 6 months.
  4. bcg

    bcg LawnSite Bronze Member
    from Tx
    Posts: 1,835

    Insurance companies are more concerned with the occupants than they are the vehicle. The property claims are easy to settle, a car is worth so much, end of story. Personal injury claims on the other hand can easily cost much mroe and most insurance policies have much higher limits on those sorts of claims than the value of any vehicle. It cost me less to insure my brand new Volvo S80 that I paid $40k for than it did to insure my 5 year old Mazda B2300 worth $4k. That's because in an accident, the people in the Volvo are much less likely to be injured.
  5. paponte

    paponte LawnSite Silver Member
    Posts: 2,366

    Are they both commercial? Discounts, such as airbags, running lights, alarms etc make a diference.
  6. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    A Fico score of 720+ lowers your premium.

    So does being a safe driver and paying cash for your vehicles, then you need only minimum liability insurance.
    And if you total it tomorrow and you can't afford to fix it, maybe you should've bought a cheaper car lol.

    Just ribbin' ya, they drive me nuts too.
  7. rutwad

    rutwad LawnSite Member
    from Alabama
    Posts: 179

    Why is your older civic twice what your trucks are?

    TJLANDS LawnSite Bronze Member
    Posts: 1,669

    What company is insuring a 26k GVW for 900(12 months)
  9. Otownlost

    Otownlost LawnSite Member
    Posts: 14

    Some insurance companies do factor credit score, very few. Vehicle class code is the determining factor in premium cost coupled with the vehicle's annual milage. Commercial vehicles also fall into seperate class codes from non commercial. If both vehicle as classified as non-comm, then simple weight differences and body style affect premium.
    I have rated business auto and these factors come into play along with the vehicle value new.
    You can adjust your premuins by looking closly at your coverages. Uninsured motorist, deductables, towing, and if you have replacment or actual cash value drive prices too.
  10. tthomass

    tthomass LawnSite Gold Member
    from N. VA
    Posts: 3,497

    State Farm.......its actually 25,500 to be specific on the GVW.

    One prob with my car is a lot of morons have owned them in the past that don't know how to drive a car. Its popular to modify and then people can't handle or operate with them correctly and well, wreck.

    My car would be about $300 less but I was in an accident 2 yrs ago. I was cut off but because I hit them it was my fault....get the picture. No ticket but because I hit them.

    Better yet, my brother gets rear ended........guy in front of him hits the brakes, my brother hits the brakes, the Civic (see I told you) behind my brother hits my brother got the ticket.

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