I’ve heard that insurance companies started using crash data to save money on medical claims. Heavy SUVs and trucks often cause more injuries to others in accidents, so you’d think their insurance would cost more. But does vehicle weight really affect the price? It doesn’t seem like it does.
Are you sure they don’t? I work in underwriting for GAP and service contracts, and we definitely consider the vehicle’s weight in our calculations.
A friend of mine is an actuary for an insurer, and they do account for vehicle weight. It’s part of the calculations for bodily injury, property damage, and collision premiums.
The thing is, heavier vehicles can be cheaper to repair in some cases, so that might balance out the extra damage they cause. Also, weight often ties to more expensive vehicles, which makes repairs pricier. At the end of the day, insurance companies use historical data to figure out rates, so all these factors are already baked into the final number.
@Morgan
Good point, but don’t forget that in single-vehicle accidents; which are about half of all crashes; heavier vehicles can cause more damage to themselves or whatever they hit.
Insurance prices are based on past data about repair costs and injuries. If a car is known for expensive repairs or high injury claims, the rate goes up. But even a small car with lots of accidents, like one often driven by inexperienced drivers, could have high rates too. It’s not just about weight; there are so many variables involved.
Of course, vehicle weight is factored into insurance. It’s strange to think otherwise.
Grandma in her 1988 Camry, who only drives to church, is less likely to cause an accident than a teenager driving a brand-new SUV every day. A 40-year-old with a clean record in a car with modern safety features will probably pay less than both.
Liability insurance is mainly about covering damages to others. Heavier vehicles might cause more damage, but a lot of other things affect rates. Gross vehicle weight matters, but it’s just one piece of the puzzle.
They do factor it in. You might not realize it because you don’t deal with insurance quotes every day. There are so many factors that affect pricing, and weight is one of the more obvious ones.
I’m pretty sure it’s included. We definitely account for it in commercial auto policies.
What’s more likely to cause an accident, the type of vehicle or the person driving it? Is it really just about the weight?
So are you saying it’s the driver’s fault for choosing a bigger vehicle?
Some states do account for weight. For example, liability insurance on a Toyota truck is a lot less than on a big freightliner.
We do consider it, man.