Before your insurer decides how much your insurance premium should be, they have to consider many things. These things concern you, your car and even your area of residence or commute. They use risk modeling techniques to arrive at a fair rate.
The risk modeling techniques attempt to predict the likelihood that a particular client will make a claim. Once this probability is determined, it is further classified before an accurate rate is established. If your likelihood is high, then your premium will be high as well. Individuals with low probabilities of claiming over time get the lowest rates. Knowing the parameters that your insurer uses to assess your likelihood is essential.
The initial consideration will be for age and sex. Younger drivers are considered more likely to make a claim. This is because young people generally have low-risk thresholds and are less experienced on the road compared to the older people. In terms of sex, men are considered riskier to the insurer when compared to their female counterparts.
The driver’s insurance history will also be assessed. Drivers whose claims history is high attract higher car insurance quote compared to the ones who have made few or no claims at all. In addition to that, the insurer will also consider how the vehicle is going to be used. Personal use vehicles attract fewer premiums than public service ones.
Whether the vehicle has antitheft technology or not also contributes to the premium calculation. This factor also influences the amount of compensation one gets in case of a mishap. Therefore, installing an alarm system, steering locks, immobilizers and gear locks on your car will lower your risk profile and attract a lesser premium.
The type of car insurance Australia that you want will also determine the amount of premium you will pay. Policies that cover a wide range of risks cost more than third party, theft and fire policies.