Planning to buy a Motor vehicle Insurance policy for your Car? If yes, then before making such a big decision, here are some of the key factors which insurers focus while calculating premiums. Taking a closer look at these factors can help you lower your car insurance premiums by making wise choices.
Companies often calculate car insurance rate in kenya based on specific factors like –
- Which Car Do You Drive?
- It’s manufacturing year
- Car model
- Safety features
- Crash information
- Age, Gender, and Marital Status
- Marital Status
- Your Driving Record
- Your Credit History:
- Miles Driven Each Year
- Where Do You Live?
Which Car Do You Drive?
One of the most important factors on which car insurance depends is the vehicle you own and the safety measures it upholds. If you own a car like Subaru Tribeca, Mitsubishi Outlander or Subaru Forester which has high-quality safety equipment, in such a case, premiums will be lowered by the insurers. And, if you have a car that is likely to meet accidents, then you would require an insurance policy that could provide you safety against any kind of financial risks.
Vehicles scoring well in these factors require less for insurance. And, those more susceptible to damage, occupant injury, or theft, are inclined to pay huge premiums by insurers. Thus, after calculating all these features, the premium amount is determined by the insurance company for insuring the vehicles.
So before you head down to the dealership, do some research and then move ahead.
Also See: Comprehensive car insurance Kenya
Age, Gender, and Marital Status
When vehicle owners tend to purchase motor insurance policies, the insurance companies review their personal information and especially focus on the age group. The reason behind is the people under age 25 and above 50 are more likely either rash drivers or unsafe drivers who meet accidents more often. Therefore, both the age groups require comprehensive car insurance and they have to pay higher motor insurance rates.
When it comes to Gender factor, women are considered less likely to get into accidents, have lesser driver-under-the-influence accidents (DUIs) and most importantly less serious accidents than men. So, being a positive factor, women generally need to pay less for motor insurance comparative to men.
As per historic calculation, people under age 25, especially singles, have higher crash rates. If you also fall into this category, and you are a student, you can ask your insurer for student discounts. Many insurance companies offer special discounts for premiums to the students who maintain a good driving record. Thus, you can avail these discounts.
In case, you are married, you can get a marital discount. Being married, most of the insurers have norms to provide special offers for the couple on the basis that they may require a separate discount for their partner, may be at the same time or in future if they tend to buy a new car.
Your Driving Record
The better your driving record, the lower your premium. A person’s driving record plays the most significant role in calculating the motor insurance premium. If you haven’t claimed for any claim for a long time or have a good driving ratings, you will have to pay lower premiums.
If you are a high-risk driver and your history reflects records of accidents, traffic violations, or DUI arrests or convictions, your history will be closely observed to determine premiums. Drivers with bad track record generally must pay more than those who have gone crash-free for a long period of time In case, you are a new driver and have not been insured for a number of years, it will surely lead to higher premiums.
TIP: Of course, your driving history will have a greater impact on what you have to pay for auto insurance. So, drive slowly and responsibly, keep maintaining your good driving habits and thus, save.
Your Credit History:
The higher your credit score, the less risk you will be and therefore, the lower your premium. Maintaining good credit can have a positive impact on the cost of your car insurance. As per norms by most of the insurance companies, your credit scoring is a tool to predict future claims by any car owner and estimated cost of that claim.
Credit Ratings are based on information like payment history, bankruptcies, collections, outstanding debt and length of credit history. For example, regular, on-time credit card and mortgage payments affect a score positively, while late payments affect a score negatively.
Miles Driven Each Year
Generally, insurance companies charge such drivers with higher premiums who drive their cars more than the predetermined annual mileage. Regular use of vehicle provides a good idea of your exposure to the road. The more a person drives, the more are chances to get into an accident. This is why the insurers ask you about the car mileage per day.
TIP: The lesser you will drive, the less likely you can get into an accident or file a claim.
Where Do You Live?
The cost of Motor Insurance Premiums is different for different areas. At the time of pricing your motor insurance policy, the car insurance rates can vary based on the factors: motor insurance rates in that particular area, car repair costs, the frequency of accidents; medical care and climatic factor.
That’s why your residence plays a huge role in determining your motor insurance payments. In general, urban drivers pay a higher motor insurance premiums due to the higher rates of demolition, theft, and accidents, than those living in small cities.
So, if you are living in an area vulnerable to theft or accidents, it is expected that you might pay more for motor insurance to counteract these costs.
These are a few common factors considered by car insurance companies in kenya while setting car insurance rates. As these factors hugely contribute to your car insurance rates, read them carefully and then step into buying motor insurance premiums for your vehicle.