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What Are Auto Symbols?
This
is a brief discussion on a major factor that is used to develop
your auto insurance premium: auto symbols. Your Coverage Is
Symbolic
Auto
insurance collision and comprehensive coverage rates are based
on several factors, such as a vehicle's:
- original
cost new
- horsepower,
size, weight, other physical characteristics
- year
of manufacture (model year)
- vulnerability
to damage, and
- sports
features (speed, handling, styling, seat capacity)
The above
items are represented in a Vehicle Identification Number (VIN).
Besides being used as a sort of automobile fingerprint, each
VIN is converted into a number between one and twenty-six.
At this point, the number is called a "symbol."
The higher symbols are assigned to higher end cars such as
Mercedes, Ferrari, and similar vehicles which represent the
ultimate in luxury, styling, sportiness, etc. Logically, the
lower symbols are assigned to modest cars, but even the little
Yugo has a symbol higher than one.
Other
Characteristics That Affect Symbols
Insurance
companies look at vehicle safety features, weight to horsepower
ratios, body styling, utility of the vehicle and many other
factors beyond the price of the vehicle when assigning a symbol.
Generally, vehicles that are known for their safety features
(Volvos, Saabs, etc.) receive lower symbols than comparably
priced sedans and will cost less to insure. Two door, two-seater,
high horsepower vehicles will generally receive a symbol much
higher than their actual value because of their sport or high
performance nature. Such cars are built to attract drivers
who take advantage of the speed and handling ability of their
cars.
An insurance
company may actually increase or decrease a symbol based upon
the claims and damage repair cost history of a vehicle. This
can happen a few months or several years after a new model
is introduced. Symbol changes may also be made for vehicles
that are prone to special dangers such as vehicle rollover
or gas tank explosions.
Why You
Should Consider Symbols?
First,
it will affect your cost to insure a new car. Ask your agent
about the differences that features make before buying a car.
A simple decision such as ordering a 4 door vs. a 2 door could
make the difference in hundreds of dollars in additional insurance
costs over the years.
Second,
insurance companies calculate their premiums based only on
factory built cars containing factory installed options. Other
dealer-installed options or aftermarket options (installed
by custom auto shops) may not be covered unless you tell your
agent. Sure you'll have to pay additional premiums, but that's
better than the alternative of not having a feature repaired
or replaced after a loss. Cars, trucks and vans are big investments
that need to be properly insured. Talk your needs over with
an insurance professional to make certain that you're protected.
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Martinson
Insurance
518 Hawthorne Street • PO Box 8
Alexandria, MN 56308
Phone: 320-763-6518
Toll Free: 800-757-6518
Fax: 320-763-5546
E-mail: agency@martinsoninsurance.com
Web: www.martinsoninsurance.com
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