Auto insurance [2]

Coverage levels

Car insurance may cover some or all of the following elements:

The insured (medical payments)
Car insurance (property damage)
Third parties (car and person, property damage and injury)
Third, fire and theft
In some jurisdictions, coverage for bodily injury and driving the insured vehicle regardless of fault in a car accident (no fault car insurance) available

Different strategies which fall under what circumstances each element. For example, the vehicle against theft, fire, accident or damage to insured independent.

Excess

excess payment is known, as the number, the fixed offset every time a car can be repaired car insurance paid. Usually this payment directly to the "garage" repair the damage (the "garage" refers to the facility where the vehicle was inspected and repaired), made when collecting the car. If the car is someone who says that a "copy" or "some" insurance company will deduct the excess agreed settlement policy, to you.

If the accident was another driver to find fault, and accept third party insurance, you may be able to recover your excess payment from other insurance.

Compulsory excess

A compulsory excess is the excess of the minimum payment of insurance to receive insurance. Minimum excesses vary according to personal information, driving record and insurance.

Voluntary excess

Reduce insurance premiums, the insured surplus is higher than the excess shall be charged by the insurance company pays.Excess is the amount of additional excess imperative that you agree to pay in the event of a claim for the policy. If more than one reduces the financial risk that insurance companies, insurance companies can significantly lower premiums.

Based on the cost premium

Depending on the jurisdiction, the insurance premium charged by either the government or by insurance companies in accordance with government regulations. Often insurance companies will have more freedom, the price to protect against physical damage due to liability compulsory insurance.

If premiums are mandated by the government, usually from actuarial calculations based on statistical data. Premiums vary depending on many factors, which may have an impact on the expected cost of future claims. The factors that influence the characteristics of the car, coverage (deductible, limit, risk of falls), the profile of the driver (age, gender, driving history) are selected and the use of a car (driving to work or may not contain estimated annual mileage).

Gender

Men average more miles driven per year than women and therefore proportionally higher accident involvement at all ages.Insurance called the accident a lower women in the management of young drivers surcharge lower for young women than their male counterparts, but adult rates are generally unisex.Reference to a lower level for young women as "female discount" added confusion over reporting on a proposal to the European Commission recently seen being beaten to make it illegal to consider gender in assessing insurance premiums. On March 1, 2011 the European Court ruled that the controversial sex insurance as a risk factor in calculating insurance premiums gender equality legislation of the European Union. They arranged for insurance discrimination against men, and this must stop. New rules on equality in the game was established in December 2012, at which time young drivers car insurance premiums increased by 25%.

Age

Teenage drivers will not drive insurance premiums higher.However, young drivers are often offered discounts for driver training more about the program are recognized, how do the Pass Plus scheme in the UK. Many U.S. insurance companies offer discounts for students with good academic results and resident student discounts to those who live far from home.Generally insurance premiums are generally lower in the age of 25 years. Some car insurance companies offer a "stand alone" for young people with lower premiums. Because the teen driving restrictions' (prohibition of driving in the dark tour or to others, for example) the reduction of these companies really risk their A teenager driving the car more secure as a sedan not a sports car and striking. Get more insurance premiums low. Senior drivers are often eligible for retirement an average discount of miles, because the lower age will be generated. Prices can find after 65 years older drivers because of the increased risk increases the older drivers. In general, the increase the risk of drivers aged over 65 years with slow reflexes, reaction time together and are more susceptible to damage due to aging [edit]. In addition, older drivers between 60 and 70 in the United States must demonstrate competence to get permission for.

Driving history

assessed in most countries are moving violation records, such as running red lights and speeding, points to the other side of the driver's travel. Because the more points will increase the risk of future violations, review the driver's insurance notes usual ", and can increase the premium accordingly. Laws vary from state to state, but the insurance company could be a violation of the most moving every three to five years before increasing insurance premiums accident The same affect .. Depending on the severity of the accident and the number of points assessed, the speed of twenty to thirty percent [21] conviction Every vehicle shall be disclosed to your insurance company, because of the risk on the road should be judged on the way to improve ..

Marital Status

Policy owners who are married often have lower premiums than single men. One reason is that the wedding will be a strong indicator of financial stability in the household.

Vehicle Classification

Two major factors that go into determining insurance risk in car performance and profitability. The most common car insurance providers of underwriting restrictions is available on both vehicles are designed, higher speeds and the amount of power or vehicles, retail above a certain dollar amount. Vehicles are often seen as luxury cars are usually more expensive premium physical violence because they are expensive to replace.Vehicles can be considered a high-performance car, usually a higher premium, because there are more opportunities for risky behavior. to carry vehicle insurance premiums lower for property damage, because the risk was minimal damage to other vehicles, but higher premiums or liability for injuries caused by motorcycle riders face different physical danger when on the road. Risk Classification and statistical analysis taking into account the car that was reported stolen, accidents and mechanical damage in a given year make and model of car.

Distance

to distinguish Some insurance plans do not in terms of how many cars. But this is a low mileage discounts offered by some insurance companies. Another method of differentiation will be more than the distance by road between the residence and are subject to normal usage habits, the daily.

Reasonable Estimate

Another important factor in determining automobile insurance premiums associated with annual vehicle mileage, and for any reason. Driving to work each day at a certain distance, especially in urban areas where roads are generally known, different risks, as retirees, but do not use their vehicles. general practice is that the information is provided only by an insured person is available, but some insurance companies will regularly collect mileage and risk studies.

Odometer-based systems

Cents per mile now (1986) advocates classified odometer-mile rates, types of usage-based insurance. After the company's risk factors have been applied and the customer has received per-mile rate offered, customers buy prepaid miles of insurance protection as needed, like buying gallons of gasoline. Insurance automatically ends when the odometer limit (recorded on the car insurance certificate) is reached unless more miles are bought.Customers like the miles on their own odometer to know when to buy more. The Company does not have-after the fact billing of customers, and customers do not have a number of companies "future annual mileage" estimates to get this rebate. In the case of traffic stop the officer can easily check that the insurance by comparing the current figures on the insurance card on the hour.

Critics pointed to the possibility of fraud, the system is manipulated by the odometer. Although the new electronic odometer roll back hard, they still can disable the odometer cable and then defeated. However, since cents per mile site now shows:

As a practical matter, resetting odometers requires equipment plus expertise, theft insurance is a risky and uneconomical. For example, to steal 20,000 miles (32,000 km) protection continuously and pay only 2,000 miles (3,200 km) more than 35,000 miles (56,000 km) to 37,000 miles (60,000 km) on the clock put back at least nine times to be done to the odometer which will held in a narrow range covers 2,000 miles (3,200 km).There are also legal grounds to prevent theft in this way. Mileage always served as a measure of the cost of resale, the value of rental and leasing, warranty limits, mechanical breakdown insurance and tax cuts cents per mile reimbursement for travel or business and administration. Odometer interference detected during claim processing, insurance and end decades of state and federal laws impose heavy fines and imprisonment.

automatically under-cents per mile, rewards for driving less, without a GPS-based technology, administratively complex and expensive. Uniform per-mile exposure measurement for the first time the basis for statistically valid rate classes. Premium income automatically keep pace with the increase or decrease insurance driving activity, resulting in demand for insurance to increase the level and prevent the hand is still lower for insurance while driving activity, but not the premium cost is reduced.

GPS-based system

In 1998, Progressive Insurance started a pilot program in Texas in which drivers received a discount for installing a GPS device that their behavior and the results reported by phone from company [23] that the policyholder. Probably more upset when they pay expensive units privacy issues [24] was established in 2000 ..

OBDII-based system

Progressive Corporation launched a snapshot to give drivers a customized insurance rate, such as how and when their car was driven. [25] current snapshot in 34 countries. [25] Driving the information to companies with on-board telematics devices. The device is connected to the vehicle (OBD II) port and (all cars built after 1996 OBD-II.) Send velocity, timing and number of vehicle miles driven. No GPS device in a snapshot, so there is no place the information collected. Cars less often in ways that may be less risky and less risky times of day, get a big discount driven.Progressive has received patents on the method and system for implementing usage-based insurance and has licensed the methods and systems for other companies.

Ratings

Insurance companies have started to rank their policies for risk.Drivers with good credit scores get lower premiums because they believe that they are financially stable, responsible, and financial resources to better maintain their vehicles. Those with a lower credit score can directly increase their insurance premiums or canceled. It has been shown that good drivers with spotty credit record, bad drivers higher premiums than those calculated with good credit records.

Behavior-based insurance

To determine that the proposed use does not interfere with driving drunk and virus monitoring other risky behaviors. A U.S. patent application combines technology with the use of basic insurance products to new forms of behavior-based insurance products currently planned for public comment peer to patent .