Insurance Companies putting a GPS in your Car

[dre]

This whole thread seems a little strange to me. Why on earth would the ammount of miles you drive be relevant to what insurance costs you? I would place more trust in a driver than drives 10 000k per month than one that drives 500k.

Iv been buying auto insurance for 30 years and Iv never been asked a single question about mileage a single time.

[Bonam]

Boges reminded me: insurance companies are comprised of monumental a-holes.

No they're comprised of employees, most of whom are just doing their jobs, but the managers and executives are tasked with making a profit, and growing that profit as much as they can. Like any company, an insurance company will sell its product for as much as the market will support. If their profit margins are particularly high, competitors will arise to try and get in on the action, eventually resulting in lower rates, assuming the regulatory regime allows that to happen (which it often doesn't). Canadian auto-insurance markets are notoriously inefficient and uncompetitive. Here in the US I pay a tiny fraction of what I paid in Canada for car insurance.

Point being, of course if people in NB are happily buying car insurance at the offered rates the company will keep charging said rates. Why wouldn't they?

[dre]

Canadian auto-insurance markets are notoriously inefficient and uncompetitive. Here in the US I pay a tiny fraction of what I paid in Canada for car insurance.

How much is that? I have a brand new vehicle that cost 70k and I pay 87 dollars per month... A tiny fraction would be... 5 dollars? 10?

[Bonam]

How much is that? I have a brand new vehicle that cost 70k and I pay 87 dollars per month... A tiny fraction would be... 5 dollars? 10?

In BC I paid $270/month. Here I pay $75.

This whole thread seems a little strange to me. Why on earth would the ammount of miles you drive be relevant to what insurance costs you? I would place more trust in a driver than drives 10 000k per month than one that drives 500k.

Iv been buying auto insurance for 30 years and Iv never been asked a single question about mileage a single time.

I honestly find that impossible to believe. You are in BC, right? Do you get insurance from ICBC? Here:

http://www.icbc.com/faqs/questions/is-there-an-estimator

Your Basic insurance costs are actually affected by you—your claims history, where you live, and how you use your car (for driving to work, just on weekends, etc.).

[dre]

In BC I paid $270/month. Here I pay $75.

I honestly find that impossible to believe. You are in BC, right? Do you get insurance from ICBC? Here:

http://www.icbc.com/faqs/questions/is-there-an-estimator

I DO get asked if my vehicle is for pleasure use or business. But never any questions about mileage at all. And I pay almost the same as you do.

[Bryan]

Umm, whenever you sign up for insurance, you input information that answers those questions.

Address:

Annual Mileage:

Daily Commute or Pleasure Use Only:

Those have been on every single car insurance quote form I've ever filled out in either Canada or the US.

My address, yes. They do have to mail me my renewal notices. But I've never had any questions about mileage, where my work is, where I park the car at night, or anything even remotely related to that.

[Boges]

My address, yes. They do have to mail me my renewal notices. But I've never had any questions about mileage, where my work is, where I park the car at night, or anything even remotely related to that.

Perhaps you signed up before such questions were asked. They don't ask these questions every year. I've been with my company for going on 10 years now. They probably still have my commute time from back then on file. It's not a main factor in tabulating a rate.

My theory with putting a GPS in the car is it's a gateway to charging people for "actual" usage of a vehicle.

In Ontario tolling for usage (using a GPS) was one of the "revenue tools" that was on the long list for Metrolinx to pay for this $50 billion Big Move plan. As fuel efficiency increases it's reasonable to assume the yield from gas taxes would dry up. That would be a way to charge people for using roads.

If the province does it why wouldn't insurance companies follow suit.

[guyser]

They do? I've been driving for 30 years, and I've never once been asked a single question about how or where I use my vehicle.

Yes at some point you have , either from it being rolled over year after year or by the codes in the policy they looked up.

[guyser]

This whole thread seems a little strange to me. Why on earth would the ammount of miles you drive be relevant to what insurance costs you? I would place more trust in a driver than drives 10 000k per month than one that drives 500k.

Iv been buying auto insurance for 30 years and Iv never been asked a single question about mileage a single time.

The more K you drive the more likely you will experience a loss. Not everyone is a professional driver.

You were, at some point, asked about your use of vehicle. Maybe......you live in the far out boonies and not be asked but I doubt that.

[guyser]

If their profit margins are particularly high, competitors will arise to try and get in on the action, eventually resulting in lower rates, assuming the regulatory regime allows that to happen (which it often doesn't).

In Ontario it happens with frequency as it is the largest market, but the past few years are all increases.

Canadian auto-insurance markets are notoriously inefficient and uncompetitive. Here in the US I pay a tiny fraction of what I paid in Canada for car insurance.

One does not beget the other.

You pay less because you are covered for far far less than someone in Canada, specifically Ontario.

[guyser]

I DO get asked if my vehicle is for pleasure use or business. But never any questions about mileage at all. And I pay almost the same as you do.

So what do you tell them? Pleasure or business?

Both categories have limits for mileage and exceeding it can cause some premium being charged when and if they find out.

[Bryan]

Yes at some point you have , either from it being rolled over year after year or by the codes in the policy they looked up.

"Codes in the policy"? How they calculate the rate, I don't know the formulas, but they've never asked me those question, not ever.

So what do you tell them? Pleasure or business?

Both categories have limits for mileage and exceeding it can cause some premium being charged when and if they find out.

There's never been any mileage limit of any kind on my car insurance, regardless of which type of coverage I had.

[dre]

So what do you tell them? Pleasure or business?

Both categories have limits for mileage and exceeding it can cause some premium being charged when and if they find out.

I tell them pleasure for our car, travel trailer, and boat, and business for everything else.

There IS different rate classes, but as far as I know theres no mileage limit in any of them.

[dre]

"Codes in the policy"? How they calculate the rate, I don't know the formulas, but they've never asked me those question, not ever.

Same here. Not one single question about mileage in 25 years, and not a single mention of it in my policy or any of the forms I filled out to buy insurance.

[guyser]

"Codes in the policy"? How they calculate the rate, I don't know the formulas, but they've never asked me those question, not ever.

If they didnt ask, then they assumed your mileage and put you in that category. Normally not a concern, but I would want to know if it were me.

There's never been any mileage limit of any kind on my car insurance, regardless of which type of coverage I had.

For some reason all access to MPIC is not working for me here and I have no filters on my computer.

[guyser]

I tell them pleasure for our car, travel trailer, and boat, and business for everything else.

There IS different rate classes, but as far as I know theres no mileage limit in any of them.

Boat?

There are (assuming you are in BC...IIRC) mileage classes for business use in BC.

Pretty much all insurance companies rate on mileage as one factor.

[bleeding heart]

No they're comprised of employees, most of whom are just doing their jobs, but the managers and executives are tasked with making a profit, and growing that profit as much as they can. Like any company, an insurance company will sell its product for as much as the market will support. If their profit margins are particularly high, competitors will arise to try and get in on the action, eventually resulting in lower rates, assuming the regulatory regime allows that to happen (which it often doesn't). Canadian auto-insurance markets are notoriously inefficient and uncompetitive. Here in the US I pay a tiny fraction of what I paid in Canada for car insurance.

Point being, of course if people in NB are happily buying car insurance at the offered rates the company will keep charging said rates. Why wouldn't they?

Because--as I already pointed out--the rates are low--relative to most provinces.

However, they are high by industry standards, because the outpaid costs by the industry are extremely low here.

Now, perhaps it will begin to change, as New Brunswickers gather the new information (which has been hidden from them by the industry--hence my "a-holes" remark.) And actual competition will arise.

And industry supporters will, oddly enough, decry this latest development..."market forces" becoming something horrible the moment it moves in the "wrong" direction.

.