| Calculating Insurance Premiums, what do I need to know? |
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| Written by Graham McKenzie |
| Wednesday, 30 December 2009 12:56 |
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Did you know insurance branches house an entire department with the strict and only purpose of analyzing and calculating insurance premiums? It's quite amazing, but when you think deeper about it, it really makes sense. Developing and building an affordable premium for the client is a serious issue.
Did you know insurance branches house an entire department with the strict and only purpose of analyzing and calculating insurance premiums? It's quite amazing, but when you think deeper about it, it really makes sense. Developing and building an affordable premium for the client is a serious issue. Car insurance is one of the more vital and recognizable insurances you will ever be covered under. Why is it so important? Car insurance more than any other type of insurance, rewards people that play it safe and our smart. The older you get, the more discount on your premium you are awarded. Car insurance providers also take into account your past driving record. If you do not have one or it's very minimal, insurance agencies cannot accurately gauge how could of a driver you are. But if you are much older, with a lot of experience, and a clean driving record ? it's a safe bet to say you are a smart and courteous driver. It is your legal duty to report to insurance agencies any change in your driving status or if you are involved in an accident. When you sign up for car insurance, you sign a contract with the provider, promising to stay honest. People must also report stolen vehicles to the insurance provider as soon as possible. Stay honest with your provider and they will greatly appreciate it. Understandably, drivers who are busted for driving under the influence of alcohol or drugs are immediately arrested and their license revoked. This could range from one to five years. It often depends on the driver's past record and if he or she is a repeat drug user. When and if the driver is allowed to drive again he or she will find outrageous premiums, and rightly so. Thankfully, most drivers respect the laws and do not drink or drive. These drivers are rewarded when it's time to renew a comprehensive car insurance policy. Insurance companies provide benefits like the "no claims" bonus. Go a year without an accident or traffic offense and see a discount in your premium for the next year. Getting into a car accident is a frightening moment. However, once is occurs and you find out everyone is safe, the question then becomes how am I going to pay for the damages? Some people will elect to have the insurance company cover the damages. Others will ignore insurance, because an accident claim will wipe out their "no claims" bonus. Wouldn't you like to save money? Of course you would, who could turn that offer down? So stop driving with reckless abandon, shape up, and earn a cheaper premium as the years progress. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Graham McKenzie is the content Syndication Manager at Insurance123.co.za South Africans leading car insurance information portal |