Often when you're shopping for quotes from car insurance companies the phrase "incidence rate" will be brought up fairly frequently. Many consumers do not fully understand what this means, but in reality it's just a easy procedure to determine the risk level of your vehicle by using the statistics that are given by auto industries that show how likely your car is to be involved in an accident, be stolen, or the severity of damage it suffers from a small accident.
Some vehicles are much more likely to be stolen, be involved in an accident or another type of driving or moving violation. Many consumers come to the conclusion that they are the only ones who get judged while they have their quote prepared, but in actuality their car is going under the same if not more harsh judgment of the insurance agents and insurance companies.
To determine the level of risk associated with your car the insurance company will look at professionally produced statistical lists supplied by the auto industry. These lists include information such as the universality of parts, failure rates, and the number and types of accidents the car is generally involved in. These have all been thoroughly researched by experts in the field who specialize in statistical analysis.
It's common knowledge that sporty cars are more likely to get speeding tickets but many people do not know that cars with light colors are involved in more accidents as well. This information should be available to everyone, not just your insurance agents. You can talk with a car dealer or do an internet search on why your rates might be higher than everyone else.
But what if you really had your heart set on a certain vehicle type, only to find out that the specific model was more prone to auto thefts than others? Obviously, your insurance rates will be higher than if you had chosen a different vehicle. If a vehicle is stolen, your insurance company must reimburse you for the full fair-market value of the vehicle. But by installing anti-theft devices, alarm systems, and even GPS systems, you can lower the theft risk and help lower your insurance premiums.
Even the color of your car can determine your policy, but not as much as some other factors. If you have a light car you might be more likely to get hit, but you can combat that fact by being underinsured and have the ones who hit you take the fall. Your insurance company will appreciate this.
By knowing the incidence rates associated with your vehicle and the ways to offset them you can ensure lower rates, but it works both ways. It's possible to research and seek out the cars that have the lowest theft rates and best safety records in order to get the lowest possible insurance rates. When advertisers note good performance and safety records they're really drawing your attention to the possibility of lower rates.
Some vehicles are much more likely to be stolen, be involved in an accident or another type of driving or moving violation. Many consumers come to the conclusion that they are the only ones who get judged while they have their quote prepared, but in actuality their car is going under the same if not more harsh judgment of the insurance agents and insurance companies.
To determine the level of risk associated with your car the insurance company will look at professionally produced statistical lists supplied by the auto industry. These lists include information such as the universality of parts, failure rates, and the number and types of accidents the car is generally involved in. These have all been thoroughly researched by experts in the field who specialize in statistical analysis.
It's common knowledge that sporty cars are more likely to get speeding tickets but many people do not know that cars with light colors are involved in more accidents as well. This information should be available to everyone, not just your insurance agents. You can talk with a car dealer or do an internet search on why your rates might be higher than everyone else.
But what if you really had your heart set on a certain vehicle type, only to find out that the specific model was more prone to auto thefts than others? Obviously, your insurance rates will be higher than if you had chosen a different vehicle. If a vehicle is stolen, your insurance company must reimburse you for the full fair-market value of the vehicle. But by installing anti-theft devices, alarm systems, and even GPS systems, you can lower the theft risk and help lower your insurance premiums.
Even the color of your car can determine your policy, but not as much as some other factors. If you have a light car you might be more likely to get hit, but you can combat that fact by being underinsured and have the ones who hit you take the fall. Your insurance company will appreciate this.
By knowing the incidence rates associated with your vehicle and the ways to offset them you can ensure lower rates, but it works both ways. It's possible to research and seek out the cars that have the lowest theft rates and best safety records in order to get the lowest possible insurance rates. When advertisers note good performance and safety records they're really drawing your attention to the possibility of lower rates.
About the Author:
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica's leading car insurance portal, which helps people save on their car insurance.
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