This profile comprises several aspects capable of increasing the risk of claims , such as accidents, theft and robberies. Insurers collect this data to set the price of insurance for each case.
In this text, find out if you have an expensive profile for hiring auto insurance and understand why.
What is car insurance?
Auto insurance is a contract signed between the insurer and the vehicle owner. However, the insured may not be the owner. As insurers have the autonomy to define these rules, you should guide yourself to know the details of each one.
In the world of auto insurance, there are 3 figures that must be well defined:
- the owner of the vehicle (the owner);
- the main driver of the vehicle (who drives most of the time);
- the insured (who signs the contract).
Which profiles are more expensive?
The characteristics that make up the profile of the insured are quite diverse. Thus, for purposes of calculating the price of insurance, it is customary to take into account various aspects relating to the insured and the vehicle. Check out.
Age below 25 years
Younger drivers tend to be more inexperienced in traffic. Statistics show higher accident rates (occurrences) in these cases.
For this reason, costs accompany risks. Some insurers refuse to insure the vehicle when the main driver falls into this condition.
Proportionally, there are more accidents involving men than women. Thus, for male policyholders, the price is higher.
Although there is a tendency to reduce this difference, it is still a component that changes the amount to be paid by the insured. Thus, the simple fact that the driver is a woman already reduces the price.
According to statistics, the incidence of claims is significantly higher in the following order: divorced, single and married. For this reason, the condition in relation to the marriage affects the value of the auto insurance premium and the divorced person pays more.
Resident under 25 years of age
The fact that a person under 25 years of age resides with the insured (a child or a sibling, for example) also increases the price of car insurance. This is because the possibility of this person driving the insured’s vehicle is not ruled out.
As a result, there is an additional risk, even if the young person is not the usual driver. And, as you already know, more risks, higher prices.
resident at home
The existence of a concierge, a greater number of people circulating and the opening and closing of controlled gates make apartment buildings safer. Thus, residing in a house makes the policyholder’s profile more risky and, therefore, increases the price of insurance.
Resident in high-risk neighborhood
Some regions of the city can be recognized as at greater risk, due to the high incidence of theft and robberies. Residing in these locations may result in higher insurance premiums as determined by each insurer.
This is a characteristic of the region, with no connection with the insured’s property or with their profile itself. In large cities where there are regions with very high rates of theft and robbery, some insurers refuse to insure the vehicle with an address in these locations.
Work vehicle user
The main purpose of using the vehicle also affects the composition of the insurance price. Thus, when the vehicle is used as a work tool, requiring constant displacements through different regions, the risks to which it is subjected are greater.
For this reason, insurers set higher premium values. The main variable, in these cases, is the greater number of times the vehicle is exposed to hazards.
User without garage
The lack of a garage leaves the car in a situation of greater susceptibility and, therefore, there are greater risks of theft. This aspect is considered both during the day, when parked, and during the overnight stay of the vehicle on the street.
CNH points holder
The incidence of scores on the insured’s National Driver’s License (CNH) characterizes a risk direction for the safety of the vehicle. In this way, insurers research the existence of points launched and include this variable in the composition of the insurance premium value, strengthening the defensive driving posture .
Customer with claims history
Many insurers value loyalty. Thus, old customers may receive some reduction in insurance renewal prices. However, it is important that the absence of claims characterizes the insured. This positive driver aspect is rewarded in the form of bonuses that reduce the final price.
On the other hand, customers with a history of claims will not have this facility. The price of insurance in these cases is higher.
Owner of an armored or sports vehicle
The armored vehicle , although safer, in the event of an accident may have higher maintenance and recovery costs. In this way, the value of the insurance premium is higher.
Owner of a high accident vehicle
Just as certain regions of the city present greater risks, some makes and models of vehicles are especially targeted for theft or robbery. Due to their high loss ratio, insurers demand higher premium values to insure them.
Vehicle owner without safety devices
Security devices, such as an alarm and tracker , make the vehicle less susceptible to theft and easier to recover. Thus, these accessories to increase protection also help to reduce the price of insurance.
Therefore, the absence of such equipment can mean higher values when contracting auto insurance.
How important is an insurance consultancy?
An insurance broker is the best consultancy to guide you in contracting your auto insurance. Each of the aspects of your profile can be well evaluated and guided by your broker , in order to make it easier to decide on your options.
An experienced and consolidated broker in the market is able to offer the best alternatives available. Thus, by choosing the insurance companies that meet your real needs, you will be able to choose the best coverage and the best cost-benefit.
With that, you are now in a position to recognize your own characteristics and know if you have an expensive profile in auto insurance.