Insurance companies will look at multiple conditions when evaluating premiums, including the condition of the car itself (model, year, etc.), the conditions of the policyholder (whether there is a record of violations and driving experience, etc.), auto insurance content (full insurance or partial insurance, etc.) more) etc.
1. Basic Evaluation Variables
The calculation combination used by each company is different, resulting in different premium rates, but all insurance companies must evaluate the following three points (however, the evaluation results are not the same), including (a) the level of risk caused by you as a policyholder (b) The insurance company’s operating costs (c) The insurance company assesses the range of your likely annual claim amount. Under the same insurance content, the premiums of the cheapest insurance company and the most expensive insurance company may vary by hundreds or thousands of dollars.
2. Risk level is the key to premium
Each insurance company will use different combinations of variables to evaluate the risk level of policyholders. Each insurance company values different factors, and the weighting calculation method is also different, which is why the premiums quoted by each insurance company are different. . A few basic assessments:
• age/gender
• Car make and model
• Driving history and records
• Driving city and living environment
• Where the car is parked (street? garage?)
• Insurance claim records
• credit history
• marital status
• education level
• Occupational category
The insurance company will determine the risk level of the policyholder based on the results of its own statistical data (which policyholder background is most likely to claim compensation from the insurance company). When the insurance company decides the rate, it will compare the policyholders with similar backgrounds (age/gender/occupation/experience). If your situation happens to fall into the low-risk group, the premium will be relatively low.
3. The amount of possible claims in the future
Although the insurance company has no way to predict the future, it can at least assess a general range, such as using past claim records (not necessarily yours, it may be the average compensation amount of the same type of background/car model) to evaluate. Each company’s policyholder background and compensation records are different, so the rate results from Quote can never be the same.
4. Operating costs of insurance companies
Insurance companies have different operating conditions and financial goals, which will further affect premium rates.
Conclusion of the above: Need to re-quote car insurance regularly, do it yourself!
