Admittedly, the process used by multi-car insurance companies to compute their premiums and coverage under the different types of policies can confound the layman. Formulas, estimates and assumptions all come together to compute for even the seemingly simple, basic and cheap car insurance policies. But don’t give up just yet.
Multi-Car Insurance Information
You can try to understand a few of the many factors that influence a number of premiums paid on your part and the amount of coverage paid on the insurer’s part in case of property damage and/or physical injury. The three most important factors where your personal circumstances are considered are biological gender and age, marital status and present occupation. At the very least, you can understand the reasons why your rates are higher when you were single as against now that you are married.
The insurance company will classify their clients into low-risk and high-risk individuals. Of course, the general rule is that the higher your risk in the eyes of the insurer, the higher your rate will be. Conversely, the lower your risk as a client, the better your chances to avail of the insurer’s better deals on coverage at affordable premiums.
Biological Gender and Age
According to the car insurance industry, males with ages from 16 to 25 years old are high-risk than their female counterparts in the same age category. No, reverse sexism is not at work here for insurance does not work in this way. Instead, this apparent bias is the result of statistics that point to the males’ propensity to drive longer miles and to take more daring chances to the wheels than the females.
Women are then more likely to avail of cheap car insurance policies than the men. But be sure to check with your insurance provider as each one follows its own set of computations. If in doubt, always shop around for the best rates.
Yet another case of apparent discrimination but with a logical explanation to back it up is the fact that married people have lower rates than their single counterparts. This practice is a legal one despite what others may believe just as it is legal to provide for lower premiums to women of all ages and to people older than 25 years old. Naturally, other factors will be considered but these are the general trends in the industry.
Plus, married people enjoy more affordable premiums for many other reasons. They usually have multiple vehicles and multiple policies with the insurance provider, which explains their preferential discounts. Plus, married people with children tend to drive safer and install safety devices on their cars – both of these favourably affect car insurance premiums.
And then there’s your present occupation. Statistics are the basis for the following categories of low and high rates based on job/profession:
- Low insurance rates – Scientists, actors, artists and pilots
- High insurance premiums – Doctors, lawyers, real estate brokers, architects, executives and business owners
Of course, it’s not a good idea to undergo a sex change, shift your civil status and change your profession just to avail of the cheap car insurance policies offered by insurers. The best thing that anybody can do in this matter is to exercise informed a judgment about the policies being offered – shop and compare, in short.