How does the car insurance premium work?

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The auto insurance premium refers to the amount that an insured pays an insurance company to be covered by guarantees. It is often signed for 12 months and re-evaluated each year according to the criteria set out in the car insurance contract.

Payment is made monthly. But an insured can very well choose a quarterly or annual payer. An annual payment is cheaper than a monthly payment.

How to calculate the car insurance premium?

Several factors come into play.

– Warranty level

The amount of the first insurance depends on the part of the degree of insurance desired. The higher these guarantees, the more expensive it will be.

The minimum required guarantee (third party insurance, also called third party liability insurance) is the cheapest guarantee. But bodily or material damage suffered by the driver responsible for an accident will not be covered by his insurance.

In order to avoid such a scenario, the insurance may take out additional guarantees for its car insurance, for example a guarantee against theft and fire.

If the insured person takes out all-risk insurance, he will be fully compensated by his online car insurance in the event of a claim (whether or not he is responsible for it). This warranty is logically more expensive. It does exist, however, if this guarantee does not work, for example in the case of drunk driving.

Proposed insurance as well as mileage guarantees depending on mileage. Its cost is lower. It is perfect for drivers who drive little.

– The driver

Depending on the driver’s profile, the insurer assesses the degree of risk to be insured.

For this, he will take into account his age and seniority of license. Young drivers, who do not have much experience, will have to pay a surcharge. The same goes for a 40-year-old driver who has never been insured, despite his 20-year license.

– The use of the vehicle

The type of parking is paramount in the eyes of the insurer. If a car is parked in a garage or in a secure parking lot, le prix de l’assurance bassera. Conversely, if the car remains on the street, the insurance premium will increase.

Insurers check where the insured lives. For example, if you live in a large agglomeration (so with more vehicles and the risk of accidents), the premium will be more expensive than if you live in a rural area.

Is it a vehicle for exclusive use or shared with another driver? In the 2nd case, there will often be a surcharge to pay. Nevertheless, the main driver wins. First, because he has no statement to make to his insurance when he lends his vehicle to the 2nd driver. Then, because the 2 drivers are covered by absolutely identical warranties. However, consider declaring the use to both drivers. Also note that in doing this, some insurers will be able to award the lead driver bonus to these other drivers.

Only the primary caregiver pays the insurance premium.

– Driver’s history

The insurer asks the insured for his statement of information. This document lists the insured’s bonus-malus as well as the number of responsible accidents he has caused in the past.

– The vehicle

The characteristics of the vehicle to be insured vary the amount of the car insurance premium (year of first registration, make, model, engine power, purchase price and Argus rating).

Concretely, a new vehicle is more expensive to insure than an old vehicle, because in the event of an accident, the cost of repairs will be more expensive. A new vehicle will also dress more coveted and therefore will be more likely to be stolen according to insurers.

– Change of situation

Some changes in the situation of the insured vary the amount of the insurance premium. For example, s’il déménage, which changes profession or becomes a vehicle.

The insured must report these changes of situation to the insurer under penalty of incurring a contract termination.

The bonus-malus varies the amount of the insurance premium. In case of good conduct, this multiplier will lower the amount of the premium. If, on the other hand, the insured is responsible for one or more claims, the price to be paid will increase from one year to the next.

– Bonus-Malus

The bonus-malus varies the amount of the insurance premium. In case of good conduct, this multiplier will lower the amount of the premium. If, on the other hand, the insured is responsible for one or more claims, the price to be paid will increase from one year to the next.

Pour your resume

What is a car insurance premium? How it is defined Let’s find out the different settings that influence its amount, including the vehicle, the driver’s history or the level of warranty.

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