Long time subscriber (2014) but only recently created user profile (If anyone checking). Utilised lot of Ozbargain posts!!
Why car insurance for BMW is more expensive than Merc?
Compared BMW M235i vs AMG A35 and found BMW is $600 approx more than Merc on NRMA website though they both are similarly priced, powered & equipped and with same country of origin.
All of the BMW incidents involving changing lanes or making left/right turns.
Wait you need to indicate…? hehe
BMWs always runs out of indicator fluid.
Some smart people did some maths and statistics and discovered it costs more to cover the costs of repairing and replacing them based on their experience insuring said vehicles.
If you choose to own a bmw or merc you know that you will be ripped off with everything involving your car. Just pay up and live with it.
Just watch the Nurburgring crash videos. BMW drivers are king, followed closely by VW.
I think Mercs and BMWs are for cashed up people but more hoons go to BMW and like to do mods. More hoons means more crashes and higher premiums.
Seems to be the new commodore for the bogan hoon community.
Compared BMW M235i vs AMG A35 and found BMW is $600 approx more than Merc
You are not comparing like for like cars. RWD cars (BMW) has higher incident probability. RWD + Turbo makes it worse statistically.
While they make the same power, BMW has bigger 3L 6 cylinder engine vs 2L 4 cylinder on the AMG. Most insurers charge higher premiums for bigger engine.
Maybe try compare it with Kia stinger GT? They both RWD, turbo, 6 cylinder. Kia is much bigger and more powerful so it would be interesting to see if BMW badge actually increases the premium.
First time came into the automotive forums in 4 years and had to scroll past a bunch of comments till I found the only well explained answer.
Can clearly see the forums are full of people who have no clue and just troll when they can't provide a reasonable explanation.
OP should've looked at engine size and would've got his answer.
Sadly for you, you missed the actual correct answer - https://www.ozbargain.com.au/comment/9474346/redir
It has nothing to do with engine size. My car has a 50% larger engine than my wife's, with a higher agreed value, yet the insurance is cheaper.
Are they both manufactured in the same country?
@drunkbeetle: One is made in Germany, the other Slovakia. Again, doesn't matter. It's a combination of a tonne of factors, not just one or two.
@brendanm: I'm aware of the fact that it's a combination of many factors. But it's obvious you can't compare the two.
The parts for one might be coming from a country which Australia might put extra tariffs on which we may not know. Or mechanics charging more for fixing EU cars.
But when comparing two EU manufactured cars, the first thing would be the size of the engine and if the vehicle has any sports components.
About 5 years ago I compared two vehicles with the same 3.0l - 6 Cylinder engine. Same manufacturer, same year, one was a 2 door coupe, the other a 4 door sedan. The 2 door coupe was more expensive even though they had the same engine size.
The poll shows 'more insurance claims on BMWs' is there are source that can verify this claim?
@drunkbeetle: No, the first thing that look at is not engine size.
All of the parts for my cars come from VW Australia, as they are VW's. Do any matter where they are made, the repairer buys them from VW here, not Europe. The cheaper car to insure actually has more expensive parts.
@brendanm: So if we compare the two vehicles OP listed, does the BMW have more expensive parts just because it's a BMW? -Without even factoring in the cost of the larger engine? And other costs associated with having a larger engine.
@drunkbeetle: BMW and Merc parts are generally comparable. The "larger engine" doesn't make parts more expensive. What does the engine size have to do with the price of a bumper?
The BMW costs more to insure, as with the nearly limitless amounts of information the insurer has, they know that they need to charge more to cover the likelihood of accident/theft with the BMW to still make money.
The insurer is in the business of making money. If a car is more likely to be stolen, owned by young or careless drivers etc etc etc, they charge more for that car so they can still make money.
@brendanm: The only thing with the larger engine is that a larger engine could mean more power, which makes the likely-hood of an accident higher.
Of course these days a 2.0L engine can also produce the same power as a 3.0L engine. But the insurers might be following an old formula where "If Engine Larger (is more powerful); Then Premium is Higher". Eg. v8 Commodore vs v6 Commodore… We don't know.
In your case your vehicle and your partner's vehicles are from different countries, even if one's manufacturing is cheaper, they might choose to sell spare parts at a higher cost. Or many other factors.
@brendanm: I thought I'll go get a quote from RACV.
2019 BMW 220I (carsales cheapest $47,000)
COUPE MY18 M-SPORT 2 Litre Turbo Petrol > $1805
2019 MERCEDES AMG A35 (carsales cheapest $72,000)
HATCHBACK MY20 4MATIC 2 Litre Fuel Injection (Mech & Elec) > $1805
Both same size engines. Comparable vehicles. Same quote. Try it yourself.
2019 BMW M2 ($89,000)
COUPE MY19 COMPTITN 3 Litre Turbo Petrol > $2910
What has changed?
The engine is larger. Higher chance of an accident.
And yes M2 parts are probably more expensive than a regular 2 series also.
So OP didn't choose comparable vehicles.
@drunkbeetle: Lol. One is a base model. One is a sports model that has a much higher chance of being driven hard, and crashed. Also much more desirable for theft.
Size of the engine does not equal power. This seems particularly hard to understand for you.
@brendanm: I already stated that a 2.0L engine can also be as powerful as a 3.0L engine. Which means they can be similar in terms of power regardless of size.
Larger doesn't mean more power, but look at the two vehicles.
"One is a sports model that has a much higher chance of being driven hard, and crashed."
I got a 2.0L BMW 2 series and compared it to the 2.0L A35.
However the 2 series' market value is cheaper so technically the premium should be less also. So yes the BMW 2.0L is more expensive to a comparable Mercedes. But OP was comparing an orange to a blood orange.
Anyways, it doesn't matter. OP should just ask the insurance company.
@drunkbeetle: Sorry I didn't see OP stated it was a 235i.
The quote for a 2014 BMW 235i is > $2224.99
@drunkbeetle: The insurance company won't tell him why it's more expensive. It's none of his business how they come to the amount they ask for the premiums.
Market value also isn't a sole indicator of premium. Honestly did you read a word I wrote? A vl commodore will likely have a higher premium than these cars, as it's a bogan chariot, likely to be threaded, easily and likely stolen, but worth much less.
BMW always cost more to repair and electronics fail more often than Merc.
Not sure what electronics failing has to do with insurance.
The found out that BMW increase in value therefore instead of paying out less than purchase price they will be progressively paying more. Check it, insurance premium might be tax deductible due to investment nature of a BMW.
What did the actuary say when you asked them?
Talking to the company.!?… We don't do that here in Ozbargainland…
I'd say you have to show more evidence that your initial statement is correct: "car insurance for BMW is more expensive than Merc". My experience says premiums vary significantly for the same car, based on driver profile, post code… What I mean is that insurers don't use the same formula, they apply different criteria, the reason why we have to compare the available options.
Have you tried to compare on AAMI and Youi? Last month, I paid around $735 for a BMW valued at 40k, comprehensive, including roadside assistance and windscreen. The other quotes (same conditions) were all over 1k, including RACV, which was the previous insurer. Some of them were over $1500, and one was over $2000.
*Insurance for two drivers in their 30s with no previous claims, in Melbourne CBD.
Thanks for the tip regarding Youi. I checked on AAMI website and they seem to be dearer than NRMA but I never considered Youi as I thought they are not as good as NRMA
I've never claimed anything so can't really comment on that. I suppose there are nice and horror stories about all insurance companies, the reason why I just try to find the best cover for less. We always hope we will never need them. :)
Bmw drivers are tools?