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How to calculate car insurance premiums

 

1. Vehicle value
Insurance companies set premiums based on the value of the vehicle. The higher the value of the vehicle, the higher the premium. In general, expensive vehicles are expensive to repair, so insurance premiums are also measured relatively high. In addition, the age and model of the vehicle also affect insurance premiums, and insurance premiums are often set lower for used cars compared to new cars.

2. Driver's age and experience
The driver's age and driving experience are very important factors in calculating car insurance premiums. For inexperienced drivers or less experienced drivers, insurance premiums are set higher. This is due to a lack of driving experience or a high risk of accidents due to unstable driving. On the other hand, drivers with long driving experience are more likely to drive safely, so insurance premiums are often set relatively low.

3. vehicle use
The use of the vehicle also affects the premium. General passenger cars and business vehicles have different uses, so insurance premiums are set differently. Because business vehicles are used for commercial purposes, they are more likely to cause accidents, so insurance premiums are set higher than similar regular cars.

4. Driver's address
The driver's address also affects the premium. The address is information that helps the insurer evaluate the risk of an accident. Insurance companies set premiums in consideration of road conditions, traffic accidents, and safety facilities in the area. In areas with a high accident rate, insurance premiums may be set higher.

5. the policy of an insurance company
The insurance company's policy also affects the premium. Each insurer may have a different method of setting premiums, and each insurer applies its own accident risk assessment criteria. Therefore, insurance premiums may vary depending on the insurance company, even for the same vehicle and driver. In this case, it is important to compare and choose products from various insurance companies.

6. Additional Selection Options
Car insurance has several options for policyholders to choose from. Typical options include self-payment reduction, driver insurance, personal liability insurance, and property liability insurance. If you sign up for these options additionally, the premium will rise. We need to minimize these additional options in order to lower our premiums.

7. Compensation payment history
Insurance companies also set insurance premiums by referring to their compensation payment history. Drivers who have received a lot of compensation or who have a lot of accidents can set high premiums because the insurance company believes that the risk of accidents is high.

Finish
The seven factors mentioned above are some of the important factors that affect car insurance premiums. Since car insurance premiums are set by different insurers in different standards and ways, we recommend consulting your insurer or using an online premium calculator if you want to know how to calculate it in detail. Car insurance premiums are calculated accurately based on information from the vehicle and the driver. Let's choose our premiums carefully and choose the right options to make sure your car is guaranteed safe.