by ninatins » Thu Oct 23, 2008 04:15 pm
All insurance companies do not have to the same rate increases at the same time.Insurance companies can do this because they use different risk assessors or variables for deciding about rate increases and when they are going to happen. This being true, it is still found that most companies typically use the same concept when factoring out rates.
If you ask an insurance agent how exactly the rates go up or why it might be hard for them to explain. This is because most insurance companies have devised their own mathematical algorithm. The company then feeds the insured's information into a computer which checks through information and spits out an answer. This algorithm itself is much too complicated for the average insurance representative to discuss.
What the computer basically does is add and subtract different factors and points to come up with a final number that matches with a value. That value points to what the rate increase or decrease should be. How is this value determined?Many insurance companies use the information or propositions found in the Insurance Services Office (ISO) manual.
If you ask an insurance agent how exactly the rates go up or why it might be hard for them to explain. This is because most insurance companies have devised their own mathematical algorithm. The company then feeds the insured's information into a computer which checks through information and spits out an answer. This algorithm itself is much too complicated for the average insurance representative to discuss.
What the computer basically does is add and subtract different factors and points to come up with a final number that matches with a value. That value points to what the rate increase or decrease should be. How is this value determined?Many insurance companies use the information or propositions found in the Insurance Services Office (ISO) manual.
Posted: Fri Oct 24, 2008 08:40 am Post Subject:
I know that the insurance companies consider the driving record of the applicant to decide the rate. Hence, a driver with years of driving experience with no or few claims against his insurance may expect to get better rates from the carrier. May be this is one of the reason the young drivers are asked to pay more for their coverage than experienced drivers.
thanks,
rupert
Posted: Fri Oct 24, 2008 09:04 am Post Subject:
The economy plays an important role in determining the rates of insurance premiums. Also the place of residence is important is determining the rate. It has be seen that people living in the cities and urban areas are required to pay higher prices for their auto coverage as compared to their rural counterparts.
Posted: Fri Oct 24, 2008 02:07 pm Post Subject:
Let's also remember that insurance rates are approved by the State. So when an insurance company increases you _____ premium by X percent, your state government blessed it.
Posted: Tue Aug 23, 2011 05:00 am Post Subject: SeuwIrdKMQr
Hey, that post leaves me feelnig foolish. Kudos to you!
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