Posted: Tue Feb 20, 2007 6:36 am Post subject: Why are my rates mounting so higher!
Hi!
Can anyone explain it to me why the auto insurance rates vary so much ? I'd also love to know how these rates are determined and what is it that decides my insurance rates! Thanks, Jerome Reeve _________________ Register Now to have your Insurance queries solved.
Posted: Tue Feb 20, 2007 6:52 am Post subject: Hi yeah!
Hi yeah..I'll answer your personal question. Lets be sure that there are a number of factors that count while deciding your insurance rates. Your track record with respect to your driving, the purpose, the place, the age of the car are some of the vital factors that come into play while deciding the rates. Regards, Fatman.
Hi Jerom!
The statistical history plays a key role while fixing your present rates. Thus the rates are decided upon the amount that meets the claims and other expenses towards business development. Got it ? Norma. _________________ Register Now to have your Insurance queries solved.
Posted: Tue Feb 20, 2007 7:40 am Post subject: basic causes..
Hi all...there are some basic causes that lead to these variance of rates, like the past claims expenses, cost of operations as well as the non-claims expenses. All these would contribute towards mounting the rates higher n higher. All we may do is to hope for the best, Billy Morris. _________________ Register Now to have your Insurance queries solved.
I think the question was why rates vary (from company to company) so much, not how a carrier determines rates.
One reason is that a company may favor certain things... usually it's a demographic area. A carrier may be looking to branch out into a certain area and therefor they write lower rates to attached that business. Some may find older/younger, etc people a better risk then other carriers.
Rates may also vary upon the type of CAR you buy... Again the demographical factor is a vital one in deciding that.
Just go to
https://www.geico.com/landingpage/go5.htm?soa=46848
You will find out Quotes for different pin codes,, you mention for GEICO
For example
Motorcar premium rates in India are already said to be among the lowest in the world. Compared to the insurance rates of about 7 per cent of sum insured, premium rates here are only about 3 per cent of sum insured. For instance, a Maruti Alto car costing about 6000 $ would incur an insurance premium of about 200$ per annum.
Car insurance companies have two basic methods of establishing premiums for your automobile. They use the relative claims experience of the makes and models of automobiles to establish your insurance premium. This means that they will check into the repair costs, the rate of injury, and the likelihood that the particular car may be stolen, to establish their risk and then price it accordingly. The current value of your vehicle is another factor, and insurance companies use a variety of methods to establish the current fair market value of your vehicle.
