1999 Rate Adjustments Make Car Buying a Snap for Minnesota Drivers
18 February 1999
1999 Rate Adjustments Make Car Buying a Snap for Minnesota Drivers
BLOOMINGTON, Minn.--Feb. 18, 1999--In the market for a new car? Call your insurance agent! Most people wouldn't think about including their insurance agent in that decision, but Farmers Insurance can help make car-buying decisions easier and may save you money.
Farmers' new comprehensive and collision rates for 1999 went into effect in January and many popular models received lower-than-average rates.
"We want to encourage customers to include their agents in the selection process when they're looking for a new car," said Paul Peterson, Farmers' Minnesota state executive director. "Consumers compare sticker prices and interest rates, but one of the most expensive aspects of owning a car is insuring it. So, before you drive off the lot, ask your agent what the insurance will be. It may affect your decision."
Farmers keeps track of how often certain vehicles are stolen and what it costs to repair them when they're damaged. These loss statistics help us determine insurance costs. A vehicle's comprehensive and collision insurance rates are set by using the car's Manufacturers' Suggested Retail Price (MSRP) and adjusting that rate up or down based on that model's loss experience. Vehicles that are safer, less likely to be stolen and less expensive to repair receive favorable adjustments and are less expensive to insure relative to their MSRPs and other cars in their class. This translates into lower-than-standard rates on full-coverage insurance.
This year a greater number of 1998-1999 trucks, sport-utility vehicles and family cars have seen favorable adjustments. The adjustments were primarily driven by loss results. "These autos have lower-than-average claims payments," said Peterson. "Some cars are simply better insurance values than others."
For example, a Ford Escort may be less expensive to insure overall than a Ford Explorer because of the difference in their MSRPs. However, if the Explorer's MSRP is $25,000 but it's rated as a $20,000 because of its better-than-average loss experience, it's a better value for your insurance dollar.
"Keep in mind that many characteristics affect your total premium," said Peterson, "including your driving record, driving habits and discounts."
Before you shop for a new car, contact a Farmers agent who can offer competitive rates for many makes and models you may be considering. Or visit Farmers' Web site at www.farmersinsurance.com for a complete list of vehicles that received lower rates.
Farmers is Minnesota's third-largest auto and home insurer, the nation's third-largest property and casualty insurer, and operates a life insurance subsidiary. With headquarters in Los Angeles and doing business in 31 states, Farmers' work force includes more than 31,000 employees, agents and district managers.
Farmers 1999 Auto Ratings
Models with Lower-Than-Standard Rates
Manufacturer Model Manufacturer Model
ACURA 3.0 DODGE CARAVAN
3.2 DURANGO
3.5 GRAND CARAVAN
SLX INTREPID
MAXIVAN
AUDI A4 RAM WGN
A6 SEDAN STRATUS
VAN
BMW 740
750 EAGLE VISION
BUICK CENTURY FORD CLUB WAGON
LE SABRE CONTOUR
PARK AVENUE CROWN VICTORIA
REGAL ECONOLINE
RIVIERA EXPEDITION
SKYLARK EXPLORER
F-SERIES PICKUP
CADILLAC CATERA TAURUS
DEVILLE THUNDERBIRD
ELDORADO WINDSTAR
SEVILLE
GMC JIMMY
CHEVROLET ASTRO PU SIERRA C1500
BLAZER 2WD / 4WD
CHEVY VAN PU SIERRA C2500
EXPRESS VAN 2WD / 4WD
LUMINA PU SONOMA 4WD
MALIBU SAFARI
MONTE CARLO SAVANA
PU C / K SERIES SUBURBAN
SUBURBAN YUKON
TAHOE
VENTURE HONDA ACCORD EX SEDAN
V6 / WAGON
CHRYSLER CIRRUS ACCORD LX SEDAN
CONCORDE V6 / WAGON
LHS CR-V
SEBRING JX / ODYSSEY
JXI CONV'T PASSPORT
TOWN COUNTRY
INFINITI I30
Q45
QX4
ISUZU RODEO NISSAN QUEST
TROOPER
OLDSMOBILE 88 ROYALE
JAGUAR XJ6 98 REGENCY
XJ8 AURORA
XJR BRAVADA
XK8 CONV'T CUTLASS
INTRIGUE
JEEP CHEROKEE 2WD / LSS/88
4WD SPORT SILHOUETTE
GRAND CHEROKEE
PLYMOUTH GRAND VOYAGER
LAND ROVER DEFENDER 90 VOYAGER
DISCOVERY
RANGE ROVER PONTIAC BONNEVILLE SE /
SSE
LEXUS ES300 GRAND PRIX
SC300 TRANS SPORT
LINCOLN CONTINENTAL TOYOTA AVALON
MARK VIII CAMRY
NAVIGATOR PREVIA LE
TOWN CAR SIENNA
MERCEDES-BENZ 300D VOLVO 850
320 S SEDAN 960
500 S COUPE C70 / S70 / V70
600 S SEDAN/ S90
COUPE 960
GELAENDEWAGEN
MERCURY COUGAR XR-7
GRAND MARQUIS
MOUNTAINEER
MYSTIQUE
SABLE GS
VILLAGER GS