There are many things in the fine print of our insurance policies – Conditions, Exclusions, Special Cases … but the premium is always charged to us in advance. More often, however, we don’t just hear numbers, never really understanding how that number was obtained or what the calculation process really entails. The amount of insurance depends on many factors, not only the number and amount of discounts you are entitled to. If you compare the amount of your insurance premium with the amount of your friends’ premiums, it may turn out that although similar discounts apply to you, everyone pays a completely different amount. How car insurance premiums are calculated?

What affects the amount of OC?

One of the factors affecting the amount of liability insurance is the car owner himself, more specifically his data. Among them, important are:

  • age – the younger you are, the higher the rates, which is why insurance for young drivers costs more. The insurance company treats you as an inexperienced driver, and above all without a harmless driving history – you can only get it in time. As a young driver, you are at the highest risk of causing an accident. The features of the representatives of this group are bravado, less cautious driving and moving at a higher speed,
  • length of possession of driving license – OC for young drivers is higher largely because they have less experience. This, in turn, means that even if you are an older person but “new on the road,” you should expect OC increases. There is a greater risk that a collision will happen to you,
  • place of residence – the larger the city where you live, the higher the amount of liability insurance. This relationship is dictated by the fact that there is more traffic in large cities, so there is a greater risk of collision. OC rates offered to the inhabitants of villages, as well as small towns, are more attractive,
  • marital status and children – as a spouse and parent you will potentially lead more calmly and prudently, which is why you may be entitled to a discount. And vice versa: statistically childless bachelor is less attentive and exceeds the speed more often, which translates into higher OC rates offered to him.
How car insurance premiums are calculated?

What factors related to the vehicle affect the OC?

Factors affecting the amount of the civil liability insurance premium are also associated with the vehicle itself. They concern, among others:

  • car brands – insurers have insight not only about the cities where accidents occur more often, but also statistics showing which car brands and models are more likely to cause damage. If your vehicle is in a higher risk group, you will pay more for civil liability,
  • mileage – this aspect is related to the technical condition of the car. A new, but very worn out car will be more prone to breakdowns, and thus – less safe. It’s easier to collide with it than with a new car with low mileage,
  • engine size – the larger your car has, the faster you can move it. High speed, in turn, promotes collisions and accidents. So you have to be aware of the fact that with a large engine, the offered OC rates will increase,
  • the age of the vehicle – the older the car, the more difficult it is to drive and the more it is susceptible to damage. A similar rule applies here as for the course. The older vehicle is in worse condition than the new one.

Prices of third party liability and AC policies are calculated based on the individual assessment of the customer and the insured vehicle. In addition, each company favors or on the contrary – estimates high risk – for selected groups of drivers. Therefore, it cannot be determined exactly on the basis of what factors and according to which tariffs the premium in a given society was calculated.


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