7 Responses for "Why is car insurance premium expensive than a home insurance policy ?"

1. taylor swift February 4th, 2010 at 4:18 am 1

   Best Answer – Chosen by Voters It has more risk than the Home Source(s): http://www.corehomecontentsinsurance.com

2. miley cyrus February 4th, 2010 at 4:18 am 2

   The reasons for this is that in case of car because of its mobility, speed and traffic – the chances of accidents are higher, the limit of liability would be higher in case of a car accident than a home. Insurance is based on the principle of probability and the probability of accidents for cars is certainly higher than a home being damaged. Secondly insurance ratings are based on the claims, expenses,(cost) and profits of each business. Claims are higher on cars and so rates are higher. Source(s): http://www.compareautoinsurancquote411.c…

3. selena gomez February 4th, 2010 at 4:18 am 3

   But it ISN'T. If you are 40, and have an old car with liability only, but live in a million dollar house in Florida, you could be paying $300 a year for your car insurance, and $30,000 a year for your house insurance.With cars, it's more about the driving history than the value of the car, because they're more likely to pay more in LIABILITY or PROPERTY DAMAGE, than damage to your car. With a home, they're more likely to pay property damage to YOUR home, than liability. But EACH risk gets individually assessed. So you're kinda asking, why is my white shoelace longer than my black shoelace. It's NOT absolute, it's just coincidental.

4. taylor lautner February 4th, 2010 at 4:18 am 4

   Insurance by definition is the assumption of riskThe risk for auto accidents and claims is much much higher than home insurance. Car accidents almost always involve medical claims as well so the rate of health care inflation also impacts auto insurance.

5. Vanessa Hudgens February 4th, 2010 at 4:18 am 5

   It is a high probability that car can get involved in any accident. While damage to house is less expected. Source(s): http://www.onlineinsurancenow.com/

6. taylor lautner February 4th, 2010 at 4:18 am 6

   Because auto losses occur at a much higher rate than homeowner losses. It is the risk that determines the premium.

7. taylor swift February 4th, 2010 at 4:18 am 7

   Cars have wheels and can get in accidents.