Compulsory car insurance protects you against the many dangers and risks associated with the car. But how are insurance rates determined? A little focus to understand the packages offered to you.
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LInsurance companies are free to define their price list. Therefore, do not hesitate to compare the best car insurance to find the most competitive solution. However, the amount of your insurance premium does not fall solely within the brand’s commercial policy. In order to develop appropriate rates, insurance companies use statistics regarding claims. In fact, the packages used by the insurance take into account:
- Driving experience: young drivers have more accidents;
- The number of horsepower in the vehicle: Powerful cars are more often involved in accidents;
- Geographical area of parking and traffic: urban areas are more prone to theft and accidents;
- Use of vehicles: business trips increase the risk of an accident;
- Vehicle make and type: Some cars are particularly popular with traffickers.
Good to know: The additional premium for young drivers
The insurance companies charge 100% premium to young drivers in the first year. The following year, this additional premium drops to 50% to disappear in the third year. Early learning to drive, known as supervised driving, cuts this extra premium in half.
The chosen insurance scheme
The cost of car insurance is also directly linked to the extent of the guarantees the insured takes out. With a subscription, the latter has the choice between 3 levels of coverage:
- Third ;
- Third party +;
- All risks.
Be aware that if the third party insurance saves on the costs of car insurance, it only covers the insured for the consequences of material and bodily damage he causes to others. This formula is suitable for owners of low value cars. It is strongly recommended to opt for a third party policy including driver personal injury coverage. The latter gives the insured the opportunity to receive compensation for the consequences of damage sustained after an at-fault accident.
Personalization of the insurance premium
The insurance companies also take into account the elements specific to each habitual driver of the vehicle. The famous bonus-malus system makes it possible to reduce the insurance premium for good drivers and to increase it for injured drivers. Without an at-fault accident, the insured earns up to a 50% bonus in the 13th year. The increase in connection with malus, on the other hand, cannot exceed 400%.
How to find competitive car insurance?
The insurance sector is particularly competitive. An online comparator allows you to express your coverage needs and get a selection of the best-placed car insurance with a single click. Free and impartial, the online comparator compares dozens of offers on the market.
You will remember that the price of car insurance is determined by the profile of the driver, the category of the vehicle and its use. An approach that applies to all insurance companies.