Factors that affect Premium rates of Motor Insurance

 

1] Car Usage – The more the car is on the road the higher the exposure to risk of accidents (3 General Categories: Private, Company & Commercial)

2] Make & Model – Provides indication of the performance, risk potential & market value

3] Car Engine Capacity – Higher performance cars attract higher premiums

4] Car Age – Reduced value of an older car may result in a lower premium

5] Driver Characteristics 

–> Age, Gender – Statistics have shown that young drivers have higher accident rates than more mature drivers

-> Driving experience – Inexperienced drivers may be more susceptible to meeting with accidents

-> Occupation – If the occupation requires the Insured to be on the road frequently, premiums may be higher

-> Claims experience – Drivers with good records are entitled to discounts on premiums