Then came the shock...
The agent said our premium would go DOWN by $6.
"How could this be possible?" I asked. "The Kelly Blue Book value of the new car is literally 10 times the value of the old car!"
As the agent explained, premiums are calculated in part by the frequency of claims submitted by make and model. Apparently there are a lot more claims filed by PT Cruiser owners than by ML350 owners.
Still, from a replacement value point of view it seemed impossible that our rate would go down by replacing a cheap car with a more expensive one, but the agent double-checked her calculations and confirmed the lower rate.
So, it costs less to insure this
|2010 Mercedes Benz ML350|
|2006 Chrysler PT Cruiser|