How come insurance is almost double for 2 cars.?

Question

I can't drive 2 cars at once, only one at a time. Therefore, the odds of causing an accident are the same as if I had one car.

Why don't insurance actuaries know this?

Answer 1

It depends how they are rated.  If you use the "more expensive" car for your usual commute, then you are rated based on several factors:  safety devices in that vehicle, how much they charge for replacing parts (comp/coll) average number of miles to/from work, etc.

I would talk to your agent and have one vehicle rated for "pleasure" use, and one rated for commuting. Also, find out if you are not getting the mulitple car discount, or the home/auto discount.  Do you have a teenager in the home who will potentially be driving it?  That may be a possible rating factor, since they may have access to it.

Hint:  the one with the LOWEST Insurance Rating Guide Number (IRG) should be the one rated as your commuting vehicle because it will come out cheaper, not only in replacement cost for the parts, but in commuting.  Your insurance agent can tell you what the IRG number is.

Answer 2

Good question.

I have heard of "Drivers Insurance", but don't know of any company that actually offers it.  It would make more sense to insure the driver rather than the car, but then again would I have to pay full coverage because I have a new truck that I rarely drive and an old car that I drive every day.

Might end up being a horse a piece.

Answer 3

The exposure to risk is doubled, as you could allow someone else to drive the other vehicle, but I do agree with the other responder the main reason is greed on the part of the insurers.

Answer 4

Stop and put your brain in gear here.  If you drive 2004 Acura (as example) and incur a serious loss, you can immediately move to Honda 2006, in which you might incur a rather similar loss.

What part of mathematics and statistics has escaped you ?

Answer 5

They do, you should have one vehicle insured as pleasure and the other one driven to work. And yes, you can drive the one rated pleasure to work if needed. That is the purpose of multi-car discounts also.

Answer 6

Great question!

They do give a discount, but its not that much really.  I think the insurance companies argument is that the insurance isn't substantially less because both cars can be stolen, vandalized, drunk driver piling into both in your driveway, loaning the car out to another driver, etc.

The discount should be much more I agree!

Answer 7

the good thing is this, your protected  : ) from planes, trains and trees .. i'm one of those that have bad credit.. insurance people want me 2 pay them 400 more a year, because of it.. i refuse.. because i really don't understand that .. bummer eh ~

Answer 8

Simple. Greed.