What Do They Pay For Insurance In The States

Bluesman · February 22, 2012

I have posted a thread on the States Lexus forum to see what they are paying for insurance.

It will be interesting to see as when actions for damages are bought out there, payouts are in the millions of dollars and not just a quick collection from the petty cash box that we are paid with.

Link for the thread http://www.clublexus.com/forums/ls400/619697-rising-cost-of-insurance-in-the-uk.html

Mike

abs66 · February 22, 2012

This should be interesting. If they are not huge premiums then it would tend to confirm some peoples, me included, belief that some of us are being bled dry.

Mike you are a genius, I wish I had thought of this.

Bluesman · February 23, 2012

I have posted a thread on the States Lexus forum to see what they are paying for insurance.

It will be interesting to see as when actions for damages are bought out there, payouts are in the millions of dollars and not just a quick collection from the petty cash box that we are paid with.

Link for the thread http://www.clublexus...-in-the-uk.html

Mike

Well the info is coming in. We have one from the States where so far it looks as like their Car Insurance is alot cheaper than it is in the UK.

I pay $700.00 a year for my 99 LS400 and about $750.00 for the Honda in PR, 33 years old, but I also insure all my vehicles full coverage and 1/2 million in protection. One basic rule to remember is you are insuring yourself not so much the car. All it takes is one bad accident with low coverage and to have someone come after your house, savings, etc... It is weird that the Lexus cost only $50.00 less then a brand new $30,000.00 (PR prices) Accord.

The next is from Sweden where everything is exspensive but surprise surprise we have a 28 year old paying about £1200 pa I wouldnt like to guess what a 28 year old here would have to pay here but many thousands would be my best bet.

I pay 950 SEK (around $142) per month with full coverage for my 2000 LS400. I'm 28 years old and living in a apartment in a smaller village outside Örnsköldsvik in Sweden. Bellow you have a link to the information sheet about my insurance. Could only find it in Swedish so most of will have a hard time to read it But in short I have what is a called a "Helförsäkring" with "Självriskreducering" (deductible reduction in English). The deductible is 3000 SEK for damages on the car caused by me (like if a hit something with the car). But due to the deductible reduction I will not pay anything if I hit an animal or if the car is damage by vandalism.

So 2 replies so far and its

Fair prices United 2 Rip off UK FC 0

Mike

abs66 · February 23, 2012

We really shouldn't be surprised. I'm just watching question time and people are still very angry about bankers bonuses. It won't be long before only bankers could afford to insure a LS!

Thanks for taking the time to do this interesting thread.

mikeyv · February 24, 2012

I wonder what a 14 year old pays in America, I believe that's when they start in some states.

Interesting thread.

LowriderUK · February 24, 2012

Insurance is much more expensive in the States, especially when you are younger.

When you work on cost of living in the States is slightly less than in the UK, a $700/year premium is pretty high for a 33 year-old.

It's not uncommon for a mid-20's person to pay over $250/month to insure a Honda Civic.

Bluesman · February 24, 2012

Insurance is much more expensive in the States, especially when you are younger.

When you work on cost of living in the States is slightly less than in the UK, a $700/year premium is pretty high for a 33 year-old.

It's not uncommon for a mid-20's person to pay over $250/month to insure a Honda Civic.

Hi Dan

Cant agree with you there.

We have members here who are over just over 30 being asked for premiums in excess of £3000. This guy has told us that he pays $700 which works out at todays exchange rate to £443.03 per annum.

The cost of living in the States is not that much different to us and in many cases wages are considerably higher.

Mike

dave1 · February 24, 2012

To try to compare insurance costs between UK and USA is not really viable. Similarly Australia and UK. Different states in USA and Australia have totally different insurance requirements and in some states is provided, in varying degrees, by the government.

In the USA things are so different to UK in many ways i.e. we pay the same tax on income irrespective of which county we live in but in the USA there are Federal taxes on income and in most states a State tax on income.

In Australia I believe that some states provide basic insurance via a levy on fuel. To me, this seems the most sensible way since the cost would relate directly to mileage, engine size/efficiency, and would also impact to some degree on non UK vehicles using our roads.

Bluesman · February 24, 2012

To try to compare insurance costs between UK and USA is not really viable. Similarly Australia and UK. Different states in USA and Australia have totally different insurance requirements and in some states is provided, in varying degrees, by the government.

In the USA things are so different to UK in many ways i.e. we pay the same tax on income irrespective of which county we live in but in the USA there are Federal taxes on income and in most states a State tax on income.

In Australia I believe that some states provide basic insurance via a levy on fuel. To me, this seems the most sensible way since the cost would relate directly to mileage, engine size/efficiency, and would also impact to some degree on non UK vehicles using our roads.

We also pay State Taxes but ours is called VAT. Our insurance rates differ wildly from county to county (State to State)

They arent so different as to expect a 30 year old in the UK to pay £3000 but in the States its £430 for the same car there is no that much difference between the two of us, never for get that when they sue for damages out in the States you are talking MEGA BUCKS.

I am hoping for others to reply from other parts of the States so we can compare.

I hadnt considered Australia but might post a thread out there.

As for putting even more Taxes on our already over taxed petrol thats a definate NoNo. Dont give them any more reason for putting the price of fuel up.

Mike

dave1 · February 24, 2012

To try to compare insurance costs between UK and USA is not really viable. Similarly Australia and UK. Different states in USA and Australia have totally different insurance requirements and in some states is provided, in varying degrees, by the government.

In the USA things are so different to UK in many ways i.e. we pay the same tax on income irrespective of which county we live in but in the USA there are Federal taxes on income and in most states a State tax on income.

In Australia I believe that some states provide basic insurance via a levy on fuel. To me, this seems the most sensible way since the cost would relate directly to mileage, engine size/efficiency, and would also impact to some degree on non UK vehicles using our roads.

We also pay State Taxes but ours is called VAT. Our insurance rates differ wildly from county to county (State to State)

They arent so different as to expect a 30 year old in the UK to pay £3000 but in the States its £430 for the same car there is no that much difference between the two of us, never for get that when they sue for damages out in the States you are talking MEGA BUCKS.

I am hoping for others to reply from other parts of the States so we can compare.

I hadnt considered Australia but might post a thread out there.

As for putting even more Taxes on our already over taxed petrol thats a definate NoNo. Dont give them any more reason for putting the price of fuel up.

Mike

The State taxes that I mentioned are nothing to do with VAT or anything like it. It is like a State tax on INCOME. VAT is a tax on EXPENDITURE. 2 guys in USAF serving in the same place, earning the same gross and paying the same Federal tax will pay different State tax on income. One State may levy 8% and another 20%. Vehicle insurance also varies between States according to what the particular requirements are in that State. There also tends to be varying levels of indemnified cover available which we don't have, i.e. the amount of 3rd party liability, the amount of medical liabilty quite apart from the reduction (excess) which we also get. This means that any figures quoted would need to state what particular level of cover is provided for each portion of the policy. In the USA if you have insufficient cover for the level of claim against you then you could lose your home etc to help pay. This does not happen here.

Regarding a levy on fuel for insurance instead of paying the private sector premiums which you (rightly in my opinion) consider a rip off this, as I explained, would be fairer in terms of mileage etc.

dave1 · February 24, 2012

I hadnt considered Australia but might post a thread out there.

Mike

Again, Mike, not really viable to try to compare since some states in Australia have basic insurance covered by the state provided by way of a levy on fuel. Private sector then provides any "top-up" cover required by individuals.

EDIT Sorry, Australia is via registration levy, it is New Zealand on fuel.

Bluesman · February 24, 2012

To try to compare insurance costs between UK and USA is not really viable. Similarly Australia and UK. Different states in USA and Australia have totally different insurance requirements and in some states is provided, in varying degrees, by the government.

In the USA things are so different to UK in many ways i.e. we pay the same tax on income irrespective of which county we live in but in the USA there are Federal taxes on income and in most states a State tax on income.

In Australia I believe that some states provide basic insurance via a levy on fuel. To me, this seems the most sensible way since the cost would relate directly to mileage, engine size/efficiency, and would also impact to some degree on non UK vehicles using our roads.

We also pay State Taxes but ours is called VAT. Our insurance rates differ wildly from county to county (State to State)

They arent so different as to expect a 30 year old in the UK to pay £3000 but in the States its £430 for the same car there is no that much difference between the two of us, never for get that when they sue for damages out in the States you are talking MEGA BUCKS.

I am hoping for others to reply from other parts of the States so we can compare.

I hadnt considered Australia but might post a thread out there.

As for putting even more Taxes on our already over taxed petrol thats a definate NoNo. Dont give them any more reason for putting the price of fuel up.

Mike

The State taxes that I mentioned are nothing to do with VAT or anything like it. It is like a State tax on INCOME. VAT is a tax on EXPENDITURE. 2 guys in USAF serving in the same place, earning the same gross and paying the same Federal tax will pay different State tax on income. One State may levy 8% and another 20%. Vehicle insurance also varies between States according to what the particular requirements are in that State. There also tends to be varying levels of indemnified cover available which we don't have, i.e. the amount of 3rd party liability, the amount of medical liabilty quite apart from the reduction (excess) which we also get. This means that any figures quoted would need to state what particular level of cover is provided for each portion of the policy. In the USA if you have insufficient cover for the level of claim against you then you could lose your home etc to help pay. This does not happen here.

Regarding a levy on fuel for insurance instead of paying the private sector premiums which you (rightly in my opinion) consider a rip off this, as I explained, would be fairer in terms of mileage etc.

Sorry David for what I was doing I just cant agree with you. We have many stealth taxes in this country that will easily bring the States and us roughly in line.

We can up our cover on all different items contained within our motor insurance policy but we dont we have become lazy and all we are interested in is how much is it going to cost and I would think 99% of insurance purchasers dont have a clue exactly what they are covered for and how much for until its to late.

I wasnt going to conduct a scientific post mortem on the financial differences between our two great countries, just to get a rough idea. But it has already shown that a 33 yr old guy in the States only pays £433 for a Lexus LS 400 where as in this country its costing thousands.

Mike

dave1 · February 24, 2012

Fair enough Mike. We all have (and are entitled to) our ideas and opinions. Be a boring old world if everyone agreed about everthing.

Regards

Dave

Bluesman · February 24, 2012

Fair enough Mike. We all have (and are entitled to) our ideas and opinions. Be a boring old world if everyone agreed about everthing.

Regards

Dave

Many thanks Dave I wasnt spoiling for a fight. Regards Mike

Thunderchild · February 27, 2012

I recon that the fuel tax should cover basic insurance and road tax. Gets round the issue of uninsured drivers on the road and also means that the folk using the roads and poluting the most pay the most. Keep the registration and MOT process and hammer the folk who run around in cars with no MOT. I'm all in favour of getting a new registration whenever a change of owner takes place as well. That way we know who has the car cos you can't drive it if you don't register it.

Tc

LowriderUK · February 27, 2012

Insurance is much more expensive in the States, especially when you are younger.

When you work on cost of living in the States is slightly less than in the UK, a $700/year premium is pretty high for a 33 year-old.

It's not uncommon for a mid-20's person to pay over $250/month to insure a Honda Civic.

Hi Dan

Cant agree with you there.

We have members here who are over just over 30 being asked for premiums in excess of £3000. This guy has told us that he pays $700 which works out at todays exchange rate to £443.03 per annum.

The cost of living in the States is not that much different to us and in many cases wages are considerably higher.

Mike

You can't apply an exxhange rate to compare the costs of Insurance. What determines whether it is expensive or not is how it compares with the cost of living in that particular country.

Anyone paying £3000 at age 30 for an LS400 is either in an incredibly high risk area or has zero no-claims discount. You have to compare 'apples for apples' when looking at the difference between costs here and in the States, and in the majority of my friends and colleagues Stateside, America is MUCH more expensive for car insurance.

Bluesman · February 27, 2012

Insurance is much more expensive in the States, especially when you are younger.

When you work on cost of living in the States is slightly less than in the UK, a $700/year premium is pretty high for a 33 year-old.

It's not uncommon for a mid-20's person to pay over $250/month to insure a Honda Civic.

Hi Dan

Cant agree with you there.

We have members here who are over just over 30 being asked for premiums in excess of £3000. This guy has told us that he pays $700 which works out at todays exchange rate to £443.03 per annum.

The cost of living in the States is not that much different to us and in many cases wages are considerably higher.

Mike

You can't apply an exxhange rate to compare the costs of Insurance. What determines whether it is expensive or not is how it compares with the cost of living in that particular country.

Anyone paying £3000 at age 30 for an LS400 is either in an incredibly high risk area or has zero no-claims discount. You have to compare 'apples for apples' when looking at the difference between costs here and in the States, and in the majority of my friends and colleagues Stateside, America is MUCH more expensive for car insurance.

I have already explained that I wasnt going to do a Forensic examination of the difference between us but just get a rough idea.

I am begining to wish I hadnt started this one.

What ever the outcome it wont make any difference as to what we will have to pay or what they pay in the States.

How many times have you heard said "do you see how little they pay for petrol in the States" no one then works out first the financial differences between the two countries first.

Mike