Factors influencing auto insurance costs

by Guest » Tue Oct 28, 2008 10:42 am
Guest

Hi, I'd like to know the different factors that my insurance carrier would take into account while deciding my premiums? Also, please tell me the factors that would usually influence our premiums. Red-ribbons

Total Comments: 4

Posted: Tue Oct 28, 2008 10:49 am Post Subject:

Hey..it is natural for all the insurance carriers to target an economic class that would fetch them the highest returns. All their efforts would be targeted to gather consumers who'd bear lesser risk potentials for them. They would usually do this since the future risks are quite uncertain for any consumer. The applicants would need to satisfy the criteria set by their underwriters.
Mermaid-attitude

Posted: Tue Oct 28, 2008 10:55 am Post Subject:

Hi, they would judge your risks upon a number of factors e.g. driving history, sex, age, distance driven by you annually as well as the kinda car that you drive etc. Once they would arrive at your score, they would fix a premium that you need to pay to them for a particular coverage for over a period of time.
Caromel_merquez

Posted: Tue Oct 28, 2008 11:04 am Post Subject:

In my opinion the most important factor to decide the car insurance rates would be the cost of settling accident claims and other associated expenses e.g. overhead cost and marketing cost. Such expenses would be reduced to some extent by the investment income out of premiums paid by insurance consumers.
Roddick

Posted: Tue Oct 28, 2008 11:07 am Post Subject:

Such expenses would be reduced to some extent by the investment income out of premiums paid by insurance consumers.

The outcome of automobile insurance underwriting would be perceived for over a period of time. The cycle comprises of a good phase which would be followed by a bad one. carriers would bank on their investments to yield good returns and minimize losses resulting out of underwriting. In the recent times companies are accumulating capital funds in excess of their expenses. Carriers belonging to certain states would need to maintain cash reserve limits which in turn would influence their consumer premiums.
Regards, Fatman

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