Saturday, August 30, 2008

Auto Insurance and Marriage – Crazy

As my wife and I continue the process of merging various financial affairs, I noticed an interesting item on our bill from State Farm. For some reason that cannot be justified by any sanity or financial data, State Farm is charging us 50% more to insure her older Corolla than it is charging to insure my nearly new Highlander.

Things I know:

  1. Somewhat beat up (but reliable), the market value of the Corolla is ¼ the market value of the Highlander (if that).
  2. My wife is the primary driver. Although my driving record is good, I had an at fault accident two years ago. Her record is perfect.
  3. From a credit perspective, we should be identical.

Comparing the before/after pricing quotes from other carriers, I think State Farm's price on the Highlander is significantly better than the competition.

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