Premium Quotes: Based On General & Not Accurate Assumptions
Most car insurance companies set their premiums based on their assumptions of what kind of driver you are. It is no wonder then that insurance for young drivers are a lot higher, again based from the assumption that they are more reckless behind the wheels. The more reckless you are perceived to be, the higher the risk for the provider. They need to translate this potential risk with a higher premium as a way for them to recover from the loss. The same assumption is applied to male drivers with women drivers capitalizing on the perception of insurance companies that they are more responsible on the road.
It may seem unfair though if you happen to be a young male driver, who is extremely cautious when driving. You will need to pay for the discriminatory rates of the many insurance companies in Australia. It is very unfortunate that these companies do not conduct individual investigation and would rather rely on general assumptions.
Insurance companies offer reasonable premium rates to the “average” driver, but fail to really define what they mean by “average.” There is clearly a need to lobby the insurance companies and educate them on the discriminatory assumptions that they practice. There must be a way for insurance companies to be really informed as to the manner of your driving. There are very few insurance companies who do take the trouble to find out about their customers. They manipulate modern technology in the process of making your quotes. They look at real and not just assumed risk factors. They look into the type of car you drive and find out the way you handle the wheel. These are factors that will determine the fitting rate for the kind of risk you offer to your providers. This method of assumption-testing quoting will require more questions. These questions will better enable you to make a more accurate quote as compared to the basic queries on your age, address and accident history.
These series of questions are particularly useful for buyers with unique driving background. Most Australians do not really fit into the calculations made by most insurance models for they simply assume the number of miles you have driven within a year and that you are using your car constantly in a given week. This assumption may have a sound basis in the past but our lifestyles have changed considerably especially with the advent of the information technology. Instead of going out to the malls, we often buy products online. Working from home is also fast becoming a trend. Many companies aim to be cost-effective and another way to do this is by maintaining virtual offices. There is no need to rent an office or handle voluminous amount of paper. Most communication are done via e-mails or other internet tools. The so called “average” driver may no longer be existing.
Homemakers, pilots and sailors are also people who do not meet the profile of the average driver. From these examples, one can deduce that most rates given by insurance companies do not really reflect the actual driving practice of many individuals. Since you are the buyer, you can refuse to be boxed in such a flawed system. You need not accept the arbitrary premium ratings that insurance firms give you. You can look for those companies who really try to get to know you and not just categorized you based on sweeping assumptions.