You might have wondered at some point why your premium is bigger than your husband’s when you own the same type of car. Or when you applied for your son, he had an unbelievable large number compared to yours. Companies aren’t necessarily ripping you off. They just have their own way of computing the quotations. The following are some of the most common reasons why your premiums are different.
Coverage
There are several types of automobile insurance you are offered at the start of application. They are classified according to coverage and the price is directly proportional to the scope of the policy. Since firms improve their products periodically, there could be some changes in their new policies compared to your old one. This is also a good opportunity to update yours if you want.
Age and Gender
A woman is usually considered less skilled in driving compared to men in the eyes of insurance providers. Also, younger drivers are essentially inexperienced compared to older ones. Both these issues cannot be factually denied so you can’t really demand for a price down based on this. Since the office has set its standards, there’s no reason to dwell on it for too long.
Type of Car
The theory behind the increase of premiums due to the model lies on the fact that new models from expensive brands are also expensive to repair and maintain. In a collision, a high-class car will demand more for a repaint job compared to an ordinary convertible. To prepare for this, companies ask for high premiums in advance. If you compare car insurance rates for different models, you can see a significant difference.
Criminal Record
Although this happens rarely, most providers take into consideration whether the applicant has done driving offenses in the past. If you are considered a dangerous driver, the chances of accidents become high and this affects the computation. The offenses aren’t limited to driving though. A person with past conviction can be subject to further deliberation.
Physical Condition
This is a basic test usually done during driver’s license issuance as well. A high-risk driver is someone with physical disability or mild mental disorder that can affect their condition when driving. For instance, those with blurred eyesight are only allowed to drive when wearing glasses. This criterion is usually based on possibilities when the driver becomes careless or goes out of control for some reason.
Most are advised to get a full coverage car insurance to counteract different scenarios.
Company Provider
If there is an obvious reason why your premiums differ, it would be if you got them from different providers. Beginner applicants are usually advised to check several options before finally applying for an insurance policy. The main purpose for this is to give them more options and time to find the most appropriate coverage. However, the second most important reason is to compare the rates. Savings are always welcome, so people like to go for cheaper alternatives. Did you do the same for your insurance application?