Car Insurance Prices, The calculations 5
Most people know about Car Insurance, well everybody who owns a vehicle should have a policy. Its one of those annual gripes that you hear being discussed in the pub, at work and even in the gym. However not many people know what actually goes into what actually determines Car Insurance Prices.
So we thought we would give you our valued customers a “dummies” guide to the pricing matrix used by insurers. To be honest we could go into loads and loads of detail covering statistical analysis going back to the dark ages but that would not get us any further into the issue. We thought this would also be a pertinent article as the courts have just ruled that gender discrimination cannot be allowed to exist in premiums.
So historically one of the main things that went into Car Insurance Prices was gender, it was one of the easiest things to test statistically. It’s a very simple way to differentiate between claimants, including cost of claim type of claim etc etc. So now that this data will effectively fall on deaf ears how companies will set premiums. To be honest its not quite clear how insurers will cost female policies. One way would be to remove the gender factor from analysis essentially taking the calculation a step. Then males should see a drop in premium and females a rise. Essentially a 20 year old either male or female should have a similar Car Insurance Price.
Other things that will become more prevalent in the costing will then become number of claims posted. The more claims the higher premiums will be pushed. An obvious follow on to this will be the value of claims that are being posted, ie if the average value of claim increases then your policy price will increase.
One of the variables that has always been around has been the car you drive, in more detail this is broken down to the value and how desirable they are to be stolen. Also this variable can be stripped into the number of claims per capita for the model etc. The higher the ratio of claims per person the higher the premium. So to limit your Car Insurance Price (if your that way inclined) would be to find a decent car that has low volume of claims and is not stolen very often (in the words of a famous meerkat Simples!!).
Your area still comes into the mix when it comes to premium setting. It is an easy statistic for insurers to use, the number of claims per region, postcode etc etc. Many areas still rate highly with car crime and numerous areas are flagging up on high accident areas. So if you live by the Croft interchange by the M6 in the North expect a slightly higher cost.
Obviously costing of policies is not as simple as these simple calculations suggest. All of the above can be cross referenced together making complex calculations covering all of the above variables in one calculation. We find it very hard to try and physically manage your premium level, the only real thing you can alter is the car you actually drive. Its pretty simple to figure that a BMW M3 will have higher insurance than a Fiat 500. What you can do is shop for a vehicle within your insurance range and not just your price range. What I mean by this is think of more than the obvious variables before you purchase your vehicle.
If you are an older driver (ie over 25-26 years old) you will have a broader range of vehicles than a 19-20 year old. This will increase including the number of years no claims so a 40 year old with 10 years no claims will be able to have a decent Car Insurance Price on more high performance vehicles.
Another key way to reduce premium is to shop round or use a comparison engine. Insurers have different appetite for risk at different points, you will see this when you compare, some prices will be £300 whilst another company will price at £3000.
We hope this article helps you a little to understand premium costing and helps you to choose the best car for your price range.
The compare shop writes articles about Car Insurance with the main aim to save you money on your Car Insurance Prices. We write money saving tips and give you product knowledge so you can save as much money as possible.
www.CarInsuranceInfoSite.com (average car insurance rates by state 2010) Average Auto Insurance Premiums and Rates by State Average 12-Month Auto Insurance Rates. [Updated September 2010]. To see what drivers in your state may be paying, on average, for car insurance roll over … homeinsurance.com CarInsurance.com Premium Index – Average Car Insurance Premiums CPI reports the lowest average annual car insurance rates quoted to consumers … State Average Rates – Compared To National Average Auto Insurance Rates … Location, 2008, 2009, 2010, Annual Change, Sep-2010, Oct-2010, Monthly Change … www.carinsurance.com Connecticut Auto Insurance Quotes – Car Insurance Connecticut … Even within the state of Connecticut, rates have changed over the past few … www.carinsurance.com Car insurance rates – the most and least expensive states for car … 9 Apr 2010 … Compare average car insurance rates among the states. … Car Insurance The most and least expensive states for car insurance in 2010 … www.insure.com Average Insurance Costs – average cost of auto, home, health … 11 Apr 2010 … As with auto insurance, average home insurance prices vary widely from state to state: Florida: 34; Texas: 48; New York: 6 … www.compuquotes.com States with Lowest Car Insurance Rates in 2010 Which States Have the Lowest Rates for Car Insurance? Esteban Sanchez-Aguilar | April 19, 2010. Which States Have the Lowest Rates for Car Insurance? … www.automobile.com Lowest …
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Question by Nay: Does gender affect car insurance prices?
I have heard being female means you get lower rates. Is this true? Do you pay a lot for insurance?
Best answer:
Answer by Louise
Yes it is true females get lower rates. The rates also go down when you get to a certain age.
Know better? Leave your own answer in the comments!
