My 550 is about 3 times that in Holland. But this is very country, state, county, region, city, suburb and individual dependent.Whats your insurance rate on your ferrari? 360 2001 - about $100/month full, MN
That sounds like a really good deal...like a really REALLY good deal.Whats your insurance rate on your ferrari? 360 2001 - about $100/month full, MN
My Firebird was $250/monthThat sounds like a really good deal...like a really REALLY good deal.
But then again, what do I know about insurance on sports cars.
Yeah, but look at your driving record, chrisMy Firebird was $250/monthI'll take the Ferrrari
Chris
Well that was kinda out of the gate with no record at all. I have gotten two tickets in the Cobalt....but no points...whew.Yeah, but look at your driving record, chris![]()
That is very true. Insurance underwriting is based on risk and claims experience, in some ways it is a gamble. The insurer hopes that their total premium income, less claims payouts, salaries, infrastructure costs, advertising and dividends to shareholders leaves them with a profit at the end of the day. They know that some policyholders will lose them money, but as the majority won't claim in the same year there should be a profit. However, if claims and payouts go up, the next years premiums will go up for those who are higher risk.. But this is very country, state, county, region, city, suburb and individual dependent.
Onno
That is really not much £ 300 p.a. ! Thank you for your splendid description of the ingredients for a insurance company to base their calculations from. As you correctly said it's "game theory" at work.That is very true. Insurance underwriting is based on risk and claims experience, in some ways it is a gamble. The insurer hopes that their total premium income, less claims payouts, salaries, infrastructure costs, advertising and dividends to shareholders leaves them with a profit at the end of the day. They know that some policyholders will lose them money, but as the majority won't claim in the same year there should be a profit. However, if claims and payouts go up, the next years premiums will go up for those who are higher risk.
As the average age of Ferrari owners is 35+ and most owners garage their cars in secure neighbourhoods, have immobilisers fitted, drive relatively low miles (under 3000 PA), the risk is quite low for an underwriter, consequently premiums are surprisingly low if you are the right profile. However, if you are a 20 year old gangsta who parks his car in the city centre the premiums can be frightening.
Risk is usually assessed using the following criteria:
Age of driver
Claims record of driver (have you claimed in the last 5 years?)
Motoring convictions (are you a persistent speeder or red light jumper)
Where you live (crime rate for your neighbourhood)
Is the vehicle immobilised
Do you own other vehicles
Mileage PA
Will the vehicle be used socially or for business
Your occupation
Cost of replacement parts and labour
There are many factors that make up the overall risk profile, but as most Ferrari owners are middle aged, respectable people premiums shouldn't be excessive if you shop around. My old 328 GTS cost approx £300 GBP PA to insure on a comprehensive (all risks) basis via the Ferrari Owners Club in the UK.
I'm no insurance expert, you'd need to get a proper definition of risk from an actuary or underwriter. But I have spend the last 20 years selling/arranging life insurance and home contents insurance as part of my clients mortgage packages, so it does give me an insight into how risk is assessed and premiums are calculated.That is really not much £ 300 p.a. ! Thank you for your splendid description of the ingredients for a insurance company to base their calculations from. As you correctly said it's "game theory" at work.
I know this has nothing to do with Ferrari in particular (or maybe it has) but for people interested in the subject I may recommend reading 2 simple written but very helpful books:
"Fooled by randomness" from Nassim Nicholas Taleb and
"A mathematician plays the stock market+ by John Allen Paulos
fund to read and very educating! Sorry for moving away form the initial subject![]()