Tue. Oct 3rd, 2023

It is not news to anyone that the value of car insurance is based on the risk factor. The larger it is, the more expensive the policy amount will be. To find out how risky it is to close a contract, insurers look at several factors about the potential policyholder. This information will draw his driver’s profile.

But what type of profile makes the final value of the geico insurance more expensive? What specific factors are taken into account? How is the calculation performed? In this article, we answer these and other questions. Follow the next topics!

Driver profiles that can make car insurance more expensive

To avoid surprises, those interested in taking out auto insurance must know their risk profile. In this way, it is easier to plan financially and even negotiate more advantageous prices between insurers. Below, we point out the types of profiles that make insurance more expensive.

Young and newly qualified

Insurers understand that a lack of experience behind the wheel is a risk. In general, young people and newly qualified people are more likely to be involved in traffic accidents. This was indicated by a survey carried out by the World Health Organization (WHO), presented in an article by Folha de S. Paulo.

In one year, 73% of deaths in traffic accidents on the planet were young people up to 25 years old. Given this evidence, drivers between the ages of 18 and 25 suffer from more expensive insurance. If the main driver is not in this age group but lives with someone who has and who drives the car, the price also goes up.

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As for the driving time, drivers who took the document more than 5 years ago have a reduction in the policy value. Therefore, some decide to wait a little longer to buy the car and take out the insurance.

Drivers who use the car more than usual

Some drivers use their cars for work. For example taxi drivers, sales representatives, and application drivers. These professionals can expect more expensive insurance. The reason is simple: the insurance company understands that the more the vehicle runs, the greater the possibilities of claims.

This account also includes the habits that the driver has behind the wheel. For those who keep getting fined and lost points for traffic violations, the final insurance value is even more expensive.

Attention-grabbing car owners

Unfortunately, some cars catch the attention of thieves. Among them are the popular ones, such as the Ford Ka, Chevrolet Onix, and Renault Sandero – according to data from the Uol portal. Insurers know this risk list.

As such, owners of targeted vehicles can expect a high value of car insurance. What can reduce the price is the address of the driver. In smaller cities and with low theft rates, even the targeted cars, there is a lower risk factor, therefore, a reduced final cost.

Drivers parking their car on the street

The lack of a garage at home or work is another aspect that makes vehicle insurance more expensive. Yes, parking the car on the street makes a difference in the cost of the policy. The reason is obvious: the chances of theft and other damage to the car are greater.

However, there is a way to reduce the amount of insurance. This happens if the region is not an area with a high rate of violence and vehicle theft.

Young men, single or divorced

While criteria among insurers may vary, there is a risk analysis that is based on the driver’s gender and marital status. Therefore, the insurance of a woman (who is known to be more cautious in traffic) can be cheaper than that of a man.

As for the analysis of the marital status, singles and divorced people usually pay a higher cost than married people. If they are young then the price goes up even more. This increase is based on the understanding that men with this profile tend to be less prudent in driving a car than those with a family.

Other factors that also influence the value of auto insurance

In addition to the risk profile, other aspects make car insurance more expensive. It’s worth checking them out to see if they fit your reality. It may be possible to modify the circumstances to save on the value of the policy. Below, we show which factors most influence this cost.

Where does the car owner live?

As already mentioned, the location of the owner’s residence is a determining factor in the cost of auto insurance. But not only that. In this aspect, the security conditions of the property are also considered.

In addition to the existence or not of a garage, it is also verified whether there are security systems, such as cameras, presence sensors, private surveillance, etc. The more protected the home, the lower the final cost of insurance.

Where is the car stored?

We talked about in previous topics that leaving the car on the street instead of in a garage is something that raises the price of insurance. Because in addition to the danger of theft, there are also environmental factors. Like this?

Let’s say that the region where the car is parked is known for several events of floods, landslides, and falling trees. In this case, the insurer may require specific coverage for these situations – making the policy more expensive.

Driver history

Those who have never been involved in a traffic accident or received few fines over the years can expect cheaper car insurance. But the opposite is also true: recklessness raises the cost of protection.

Therefore, drivers must respect the rules of the Brazilian Traffic Code and drive safely. In other words, prudence generates financial benefits, in addition to safer traffic; it is clear.

Car model

In addition to the car models most targeted by thieves, those that also have a high repair cost make insurance more expensive. As an example, we can mention vehicles that need imported parts when maintenance and repairs are carried out.

Is it worth lying if you find yourself in any of these situations?

Sincerity and honesty are always the best way to go. Even if it means paying more for car insurance. When the driver omits information or tells lies about certain aspects, the insurance company can deny compensation in the event of a claim. 

How is car insurance calculated?

The final value of car insurance is calculated based on several aspects. Among them, we can mention:

  • Car model and year;
  • Vehicle circulation region;
  • Chosen coverages ;
  • Driver profile;
  • Car theft index.

This math doesn’t have to be complicated and time-consuming. Many insurers, provide an online quote that calculates and generates the insurance value in a matter of seconds. In this way, companies make the driver’s life easier.

Do you want to do the car insurance value right now? So, get a practical, simple, and quick quote.

By admin