Connect with us

Published

on

Follow Us

Follow Us @

What is a car insurance premium?
-Receive alerts for the main trending insurance news today, car insurance updates, types of insurance, latest insurance opportunities and lots more! Enjoy your stay!!

The cost of car insurance premiums can be high depending on the type of vehicle and coverage. However, there are ways to make it cheaper. Check it out in the text!

When taking out insurance, the user is introduced to a series of new terms in the industry: deductible, indemnity, coverage, car insurance premium…. Among them all, the one that tends to cause the most confusion is the last one: many people believe that the premium is the amount they will receive if an accident occurs with the car. In fact, however, this is the compensation!

Advertisement

The insurance premium is nothing more than the amount that the consumer pays to the insurance company to obtain protection against losses. In other words, it is the sum of your monthly insurance premiums.

What is a car insurance premium?

Image: Getty

How is net insurance premium calculated?

According to the National Confederation of General Insurance, Private Pension and Life, Supplementary Health and Capitalization Companies (CNSeg), by the end of 2017 Brazil had 17.1 million insured cars. To define the cost of a premium for each of them, insurers take into account numerous criteria.

Initially, the company evaluates the car, its market value and its driving conditions. At the same time, it checks who the drivers of the vehicle are. After all, the longer an individual has been driving, the less prone to accidents they are. Therefore, your premium may be cheaper, as the insurance company will hardly be called upon to cover a claim.

Advertisement

At the same time, the insurance company evaluates the vehicle's circulation region; whether it remains in protected parking; and various other data. This way, it can define a cost that seems fair to the consumer, but that also pays off for the business if the franchise is activated.

Car insurance premium versus insurance deductible

Typically, the higher the insurance deductible, the lower the premium requested. However, adhering to a high deductible can be disadvantageous, as the value corresponds to how much the user will have to pay in the event of an accident.

Imagine that you take out coverage with a deductible of R$1,000. If an accident occurs and the repair costs R$3,000, you will pay R$1,000 at the workshop, while the insurance company will pay the remaining R$2,000.

In insurance with a very low premium, however, this deductible tends to be higher. Therefore, if the insurance needs to be activated, the consumer will have to pay a high amount.

Advertisement

In any case, there are other ways to make car insurance premiums cheaper. You can, for example, install an alarm and/or tracker in the vehicle. When the car is kept in a parking lot, driven by only one driver and has preventive maintenance carried out periodically, the cost of its protection is also usually lower.



What is a car insurance premium?

Follow AFRILATEST on Google News  and receive alerts for the main trending insurance news today, car insurance updates, types of insurance, latest insurance opportunities and lots more!

What is a car insurance premium?

SHARE POST AND EARN REWARDS:

Join our Audience reward campaign and make money reading articles, shares, likes and comment >> Join reward Program

Advertisement

FIRST TIME REACTIONS:

Be the first to leave us a comment – What is a car insurance premium?
, down the comment section. click allow to follow this topic and get firsthand daily updates on Insurance.

JOIN US ON OUR SOCIAL MEDIA: << FACEBOOK >> | << WHATSAPP >> | << TELEGRAM >> | << TWITTER >

What is a car insurance premium?

#car #insurance #premium
Advertisement
YOU MAY HAVE MISSED:
6 Secrets to Comparing Car Insurance Rates
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending