What Factors Affect an Auto Insurance Premium?

Vehicle insurance premiums are calculated based on the type of vehicle being insured by the policyholder, the nature of use, and the type of insurance that needs to be insured.

Vehicle insurance

The motor vehicle insurance premium rate table is a standard for the collection of premiums by the commercial insurance industry for the commercial vehicle insurance industry. There are three types of A, B, and C. There is not much difference between the terms. Each insurance company can choose one to implement.

The motor vehicle insurance rate schedule specifies the calculation standards for all types of commercial insurance, including four basic insurances and more than ten additional insurances, and makes reference premiums, rate coefficients, and other factors according to the different conditions in each region. Clear definition. Each insurance company can calculate the specific amount of the benchmark premium according to the motor vehicle insurance rate table, and then determine the extent of the discount according to the company's decision; car owners can also calculate the corresponding premium expenditure based on this, and then based on this benchmark Make a horizontal comparison of the quotes of various insurance companies.

such as,

First, driving records

When insured in the second year, the insurance company will check whether the owner has a bad driving record, such as drunk driving, etc. In short, drive carefully and there are no accidents, then you will want to have a certain price concession when insured in the second year. At the same time, the age of the driver, whether a novice and whether the vehicle is often driven by one or two people are also factors that affect premiums.

Second, the car model

Each insurance company has different risk values for cars of different model years. In short, the higher the value of a car, the more popular it becomes, and the higher the premium.

Third, the driving area

Two identical private cars travel in urban areas and often travel long distances, and the premiums will be different. Not only that, some insurance companies even take your car into the garage of your doorstep or underground public parking lot when determining the premium.

Whether to be continuously insured

If there are reasonable reasons, such as traveling to a foreign country, traveling for two or three months, and not using a vehicle during the period, most insurance companies will agree to temporarily stop your car insurance and wait for you to return to insurance at the original price. But if there is no sufficient reason, they may think that you have an unspeakable purpose to stop the insurance and then consider you as a new customer when you resume, which usually means increasing the premium.

V. Insurance claim record

This is the same as the driving record. If the car owner did not have an insurance claim record in the previous year, he will also enjoy a certain price concession when he insures car insurance in the second year. Conversely, if the car owner has not provided a concession, the car insurance costs will not be discounted. There is danger of rising premiums.