First start by defining what is the risk premium of insurance . This concept is the amount of money the policyholder pays, monthly or annually, to enjoy the coverage of a policy. The cost of it depends on several factors that must be analyzed.
The accident
The statistics are very important when calculating car insurance . First, the number and cost of accidents that have occurred in recent years, from these figures, the trend observed is discussed. I mean, is taken as a reference to calculate what will happen next year.
After analyzing this data, if the accident rate has shown a downward trend, chances are that insurance premiums price reduction and vice versa. This is because insurers consider that drivers are exposed to less risk and therefore pay less money themselves by the number of casualties.
Driver
Another important factor that insurers take into account are the people who will drive the vehicle. If the driver already spent years with driving license and has had no accidents, the premiums of your car insurance will be cheaper. This calculation also takes into account factors such as driver age and marital status, as it is statistically proven that young drivers take more risks. It also takes into account if you have more than one driver and habitual use made of the vehicle.
The circulation area
Insurers apply different rates depending on why go to move the vehicle to ensure geographical area. There are several factors that make some areas have more accidents than others, as for example road design, weather or traffic density. So there are insurers who come for the same car to charge almost twice a premium compared to other provinces.
The car
How could it be otherwise, the insurance premium is also determined by the characteristics of the car. In this case, the policy of a new car will be more expensive than an older car and the more expensive and powerful the car, the higher the price of insurance. So the lower the weight and more power will be the most expensive car liability coverage, while the value of the vehicle determines the price of own damage coverage.
As we have seen, the price of the premium depends on several very different variables, however, each insurer decides on its own what importance to give each of these factors so the final price will vary according to the company.
Moreover, this first "calculation" must be added the costs of management and benefit costs that each insurer applies according to its own policy. The end result is the amount the customer pays for your car insurance.
For these reasons, from CMS Insurance, please study the market well before venturing to buy a policy and seek, where possible, to professionals such as brokers and agents, we will help find the deal that suits us within the wide range of programs out there today.
