Introducing a guideline for automobile insurance remiums
The annual insurance premium varies greatly depending on the type of vehicle, mileage, age, etc., but can be used as a guide based on the average market price. If you are over 30 years old and you use it infrequently, the standard premium is about $ 385 per year. However, this is the amount if you already have auto insurance, have no accidents or violations, and have renewed or switched to another insurance company. The first time you buy a car and get auto insurance, the grade discounted price will be cheaper, so the market price will be slightly higher, about $ 577. Even under the same conditions, as you get older, the risk of accidents will increase by several thousand $.
Mileage-based premium costs can be divided into three stages. The standard is less than $ 288 for less than 3,000 km, less than $ 385 for less than 10,000 km, and less than $ 480 for more than 20,000 km. If the mileage is just over 1km, it can cost upwards of $ 90. So it’s important to keep this in mind if you want to keep your insurance premiums low and refrain from using it if there’s a chance you will exceed the number. prescribed.
Insurance premiums vary by insurance company, but there are no differences in the examination items that determine insurance premiums based on age, mileage, etc. It can also significantly lower your insurance premiums depending on when you sign up. If you want your car insurance to be as cheap as possible, it’s important to understand the terms and get it at the right time.
What is risk subdivision type automobile insurance? Nine risks that determine insurance premiums
So what type of insurance is split risk car insurance?
Auto insurance is based on individual differences, such as the type of vehicle, the age of the driver and the history of previous accidents.
In this way, insurance that subdivides and evaluates risk factors and reflects them in insurance premiums is called split-risk auto insurance.
The risks that may be reflected in the insurance premiums are the following nine elements stipulated in Article 12, Paragraph 3 of the Regulations for the Application of the Insurance Business Law. The elements of risk adopted by insurance companies are different.
Risk factors used to calculate insurance premiums
- age
- sex
- Accident history
- Purpose of use of commercial, private and other automobiles
- Annual mileage and other vehicle usage
- area
- Type of car
- Presence or absence of automobile safety device
- Number of cars owned
Let’s take a quick look at each item.
(1) Age The
insurance premium will be higher for the age group with a high accident rate based on the statistics so far. Overall, insurance premiums are high for people in their 20s, who have little driving history, and low for people in their 30s and 40s, who improve their driving skills. In addition, due to the increase in accidents in recent years, insurance premiums for the elderly are high.
(2) Gender
Currently, it is thought that few insurance companies reflect gender in accident risk.
(3) Accident history
Due to the grade (non-fleet grade system), past accident history has a great influence on insurance premiums. The grades are divided into 20 grades according to the risk of accidents, and those who do not pay insurance claims (people who do not pay for a long period of time) have a higher discount rate of insurance premiums and have a history of paying insurance claims due to accidents. The more people you have, the lower the discount rate for insurance premiums.
(4) Purpose of use for commercial, private, and other automobiles
The risk of an accident varies depending on the purpose of use of the vehicle. In determining insurance premiums, the purpose of use is divided into three categories: daily / leisure, commuting / school, and business use.
In the case of Zurich, it is set as follows. Next, I will explain (5) It is a mechanism to subdivide and reflect the risk according to the annual mileage and other vehicle usage conditions.
(5) Annual mileage and other vehicle usage conditions
Specifically, it is the actual mileage. At the time of contract, it may be a forecast from the current usage status, and if it is different from the actual situation, it is necessary to change the contract contents.
(6) Area
The difference in insurance premiums by region (prefecture) is calculated based on the past insurance payment results in that prefecture. In prefectures where there are many accidents and many insurance payments are made, insurance premiums are higher than in other prefectures.
(7) Vehicle type
There will be a difference in insurance premiums based on the type-specific rate class that divides risks according to the vehicle type and model. In the past, the higher the model of car that has paid the insurance money due to an accident, the higher the insurance premium will be.
(8) Existence of automobile safety device
Some insurance companies set a low insurance premium if the contracted vehicle is equipped with the specified safety measure device.
(9) Number
Number of cars owned If multiple car contracts are made by one insurance company, there may be a discount on insurance premiums.
