More Cars Than Drivers

Americans own more and more cars.  In 2003, for the first time, there were more registered cars than drivers on the road (1.9 cars per household and 1.8 drivers).  By 2005, there were more than 1100 cars for every 1000 drivers.  More than one million American households have at least 2 more cars than drivers. Of course, this does not mean that those households drive more. As far as we know, no one can drive more than one car at a time.

In spite of this, many auto insurers charge almost as much premium to insure the third or fourth vehicle of a two driver policy as they do each of the first two vehicles. Are these carriers irrational, or do they consider these households to be price-insensitive?

 Probably neither.

 As insurance companies examine their results, the segment with more cars than drivers does not produce very good loss results.  That pool of customers is made up of two distinct groups: Families with fleets of un-driven cars and others with unlisted youthful operators.  In effect, they are trying to decide if you have more cars than you could possibly drive or teenagers that you haven’t disclosed.  This uncertainty leads to an understandably conservative approach; and the car enthusiasts lose out.

If you genuinely have more cars than drivers, PURE Private Fleet automobile insurance may be the smart choice