How to calculate vehicle insurance?: Calculating the price of car insurance is not easy because many factors are involved. It is the specialists of each company who make this actuarial calculation, which in each case and for each insured is different. We are not talking about coverage or the price of the vehicle, since it is logical that the more coverage and the more expensive car, the higher the price.
The car insurance policy is the document by which the policyholder hires the services of an insurance company, so that he is responsible for all the cases contracted, in the event that they occur.
How to calculate vehicle insurance?
How is the car insurance policy calculated?
Determining the total value of the car insurance policy is something that involves a statistical process and analysis of the data of the vehicle and of the service taker.
The coverage of the insurance company that takes charge must appear in the insurance policy, something that is negotiated when contracting an insurance or another; the obligations that the driver will have, as well as the identification data of the vehicle.
What are the data to take into account to calculate the policy?
At first, technical details of the car will be assessed , such as its brand, engine power or type of vehicle. Aspects such as how the car will be used and whether it will be parked overnight on the street or in a garage are also important.
On the other hand, those in charge of calculating the policy also have to closely assess the policyholder of the vehicle. In this case, there is data that is especially important, such as the number of years the driver’s license has been held or the history of incidents in recent years.
How much does the insurance go up for a part?
The lower the parts given prior to taking the policy, the lower its costs will also be. When giving a report of an accident in which there is damage to third parties, it is common for our premium to increase, but it will be necessary to differentiate whether we have been responsible for them.
Lastly, and as is logical, the number of coverages contracted or the driver’s risk factors end up shaping the final value of the insurance.
The years of age of your driving license , an important factor
The less time you have your driving license, the less experience you accumulate and therefore the companies consider that you have a greater risk of suffering
Does the place where you live and take out the insurance influence ?
Although a priori citizens are the same in every way, insurance will not cost you the same if you live in Cuenca than in Pontevedra because there are areas where the accident rate is higher than the rest. For example, third party insurance can be up to 226 euros more expensive in Pontevedra (€530) than in Cuenca (304). That is, the answer is yes, it has a lot to do with where you live.
What about the claim history?
As you will have heard many times, if you have reported a claim or not, the price of the policy will be higher or lower, it is what is understood as a claim history. As is logical, whether or not the fault of the accident was yours will vary, but it is clear that the more parts you have filled out even if it was not your fault, it may be more expensive for some companies. In short, the more time without a claim, the better price they will offer you.
And if your car is also driven by other people?
The more people who can drive your car, the greater the risk and therefore the higher the fee. In addition, the circumstances of each of the “added” drivers can also vary that fee upwards, but you will always pay more. What is clear is that you better be calm if you know that the vehicle will not only be driven by you, even if you have to scratch your pocket a little more.
If you have a new car, is the insurance more expensive or cheaper?
Logically, the more a vehicle costs, the more expensive the insurance price is, because the company assumes more risk in the event of an accident. New car, and if it is also expensive, you will pay more.
Do the power and displacement of the vehicle also affect the price?
Power, weight and characteristics of the car make up a set that specialists take into account. A car that weighs little and has a lot of power represents a greater risk because driving it is more difficult and, in general, a car with a lot of power always presupposes a higher accident rate than the rest.
This is generally the case, because the logic of the statistics says so, but a car with very little power can pose a risk if the driver decides to make certain overtaking or needs strength if the situation requires it.
In any case, the displacement is also taken into account, because the more cubic centimeters, in principle, the more power.
So, why once the premium (called pure premium) is calculated, does each company apply a different price? Well, because each insurer values the risks differently according to its experts, and then applies the premium based on the management of the company, which allows it to offer more interesting prices.