Often when you're shopping for quotes from car insurance companies the phrase "incidence rate" will be brought up fairly frequently. Many consumers do not fully understand what this means, but in reality it's just a easy procedure to determine the risk level of your vehicle by using the statistics that are given by auto industries that show how likely your car is to be involved in an accident, be stolen, or the severity of damage it suffers from a small accident.
Certain types and models of vehicles are more attractive to thieves. Also, certain models have been shown to be more likely to be involved in accidents or violations such as speeding or reckless driving. The insurance quote not only takes into account your personal driving history, but is also determined by the type of vehicle that is being insured.
How are these incidence rates determined? Whenever a vehicle is involved in a theft, accident, or traffic violation, the law enforcement agencies specify the make and model of the vehicle. These statistics are compiled into a database which shows which vehicle types are more likely to be involved in these incidents. The insurance industry uses these statistics to determine the risk level of each vehicle type and adjusts premium rates accordingly.
It's common knowledge that sporty cars are more likely to get speeding tickets but many people do not know that cars with light colors are involved in more accidents as well. This information should be available to everyone, not just your insurance agents. You can talk with a car dealer or do an internet search on why your rates might be higher than everyone else.
But what if you really had your heart set on a certain vehicle type, only to find out that the specific model was more prone to auto thefts than others? Obviously, your insurance rates will be higher than if you had chosen a different vehicle. If a vehicle is stolen, your insurance company must reimburse you for the full fair-market value of the vehicle. But by installing anti-theft devices, alarm systems, and even GPS systems, you can lower the theft risk and help lower your insurance premiums.
If your car is a color that's more likely to be hit by another car, such as white, you can add uninsured or underinsured motorist protection to ensure that you are covered in case the other driver isn't. Most of the time the insurance company will allow a lower rate in this case as they're protected from extra costs. Remember that even though it's illegal to drive without insurance it's still very common to find people who don't think they need it. You have to think ahead to protect yourself in this situation.
It's very important that you know what the incident rate for your car is for all of the situations mentioned above. These would be accidents, theft, and the sad but possible possibility that your car could be completely destroyed in a car accident. Everyone might want to ponder their car choices a little bit more, and maybe choose the slightly more conservative car over the flashy white or yellow sports car. This could save you money in the long run, and it might actually help make you safer!
Certain types and models of vehicles are more attractive to thieves. Also, certain models have been shown to be more likely to be involved in accidents or violations such as speeding or reckless driving. The insurance quote not only takes into account your personal driving history, but is also determined by the type of vehicle that is being insured.
How are these incidence rates determined? Whenever a vehicle is involved in a theft, accident, or traffic violation, the law enforcement agencies specify the make and model of the vehicle. These statistics are compiled into a database which shows which vehicle types are more likely to be involved in these incidents. The insurance industry uses these statistics to determine the risk level of each vehicle type and adjusts premium rates accordingly.
It's common knowledge that sporty cars are more likely to get speeding tickets but many people do not know that cars with light colors are involved in more accidents as well. This information should be available to everyone, not just your insurance agents. You can talk with a car dealer or do an internet search on why your rates might be higher than everyone else.
But what if you really had your heart set on a certain vehicle type, only to find out that the specific model was more prone to auto thefts than others? Obviously, your insurance rates will be higher than if you had chosen a different vehicle. If a vehicle is stolen, your insurance company must reimburse you for the full fair-market value of the vehicle. But by installing anti-theft devices, alarm systems, and even GPS systems, you can lower the theft risk and help lower your insurance premiums.
If your car is a color that's more likely to be hit by another car, such as white, you can add uninsured or underinsured motorist protection to ensure that you are covered in case the other driver isn't. Most of the time the insurance company will allow a lower rate in this case as they're protected from extra costs. Remember that even though it's illegal to drive without insurance it's still very common to find people who don't think they need it. You have to think ahead to protect yourself in this situation.
It's very important that you know what the incident rate for your car is for all of the situations mentioned above. These would be accidents, theft, and the sad but possible possibility that your car could be completely destroyed in a car accident. Everyone might want to ponder their car choices a little bit more, and maybe choose the slightly more conservative car over the flashy white or yellow sports car. This could save you money in the long run, and it might actually help make you safer!
About the Author:
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica's leading car and vechile portal.
No comments:
Post a Comment