Factors Determining Insurance Premium Rates
The premiums on car insurances vary depending upon the person applying for them. To compare car insurance, there are certain factors based on which the companies calculate and decide the premium for the applicants.
Section of Population Driving: Statistical data indicates that young people go for more insurance claims than their senior counterparts do. Similarly, women claim insurance less often than men do. Age and gender thus become important criteria that affect the rates of premiums. The section of population that is more likely to come under a lower risk group, such as women and older people, invites a lower premium. In addition, the rates differ with difference in occupations. For a person whose work involves more travelling, the probability of consideration increases.
Integrity Issues: Companies welcome people with a sound driving history for lower premiums whereas applicants with a dicey driving history will have to go for a higher premium package. However, if the conviction period has crossed the 5 years mark, it will no longer be taken into consideration for calculating the insurance premium.
Make of the Car: The type of cars the applicant owns is one important criterion to come under a specific premium rate. Large cars with powerful features draw more money for repair purposes and come under the high insurance premiums. Smaller cars, on the contrary, are easier to maintain thereby needing fewer rates for insurance. All car models in the UK are rated with an Insurance Group rating, which acts as a guide for the insurance companies.
Niche Specificity: The part of the city in which the applicant resides plays an important role. The city dwellers pay a higher amount on the car insurance premium than the people living in the countryside. Premiums also vary with postcodes as well depending upon the crime statistics in that area. A high crime zone is more likely to have a greater insurance rate.
Safety Issues: Safety concerns can derive a higher premium. A car locked safe in a garage or with tracking devices or with a car alarm, insures safety thereby bringing lesser premium than a less secured car.
Article written by the marketing division of Compare.Com.
