Buying Car insurance is mandatory in most Countries of the World. However, Car insurance companies charge different prices to their insured vehicles because they base their prices on risks, or the possibility that a company ends up losing money for the damages that are caused by an insured, and the higher The risk to a company, the higher the price for an insured.
For example a driver who is very young, who wants to purchase a sports car and who lives in an area with high theft rates, is considered high risk for the company Because the driver is more ikely to be involved in a car accident. Its price to be paid will therefore be very high to compensate for the risks that the company is taking to cover it.
The insurance companies, in fact, rely on multiple data for the calculation of the insurance premium : from the type of vehicle, to the age of the driver, passing through the residence, are just some of the main parameters that are taken into consideration. As a general rule, however, the cost of the insurance premium essentially depends on the probability of an accident occurring or not: therefore the higher the probability, the higher the cost of Car Insurance.
In addition to the pure premium, however, which is precisely determined by the probability of an accident and by the average cost of car accidents , the cost of insurance is also increased by taxes and duties, which weigh on the final price.
The main parameters for calculating the insurance premium
The type of vehicle
Among the main factors that contribute to determining the so-called insurance risk, that is the data on the basis of which the premium is calculated, surely there is to consider the type of vehicle to which the insurance is applied.
Some features of the vehicle, in fact, influence the price of car insurance, one above all the engine power: statistically, the more powerful the car, the more the risk of an accident increases.
Vehicle power supply
The general rule says that the less the fuel costs, the more the car will be used and therefore the probability of making accidents increases. The diesel engine car will pay more than a petrol or electric car. In particular, there will be a lot of savings with electric and hybrid cars facilitated by the fact of not polluting. But this is not true, contrary to what one might think, with natural gas cars which, especially in some areas. The reasoning that raises the price of auto insurance policies with this type of power supply is this: CNG cars generally travel more kilometers than petrol cars and are therefore more prone to accidents.
The presence of safety accessories
ABS, airbag, black box, satellite anti-theft device, automatic emergency braking and other driver assistance devices, are all devices that lower the cost of insurance because they make accidents, injuries and thefts of the car less likely.
Personal factors: The personal factors that affects the cost of Car Insurance are:
Age and gender :
The younger you are, the less driving experience you have, the higher the insurance premium price is likely to be. Young people, therefore, pay more than adults, and, in particular, those under 25 are considered more likely to not behave correctly. Furthermore, if you are a woman, you pay more than a man.
How long you have a license:
The less time you drive, the more likely you are to make accidents.
The class of merit
Based on your personal insurance history, you are placed in a specific category that indicates the probability of making an accident. The more accidents in the driver’s career, the higher the insurance premium.
If you do a job for which you go a long way, the price of car insurance will be higher.
Other factors that influence the price of car insurance can be the province in which the vehicle or residence is registered