Using Incidence Rates To Make Better Buying Decisions
Often when you’re shopping for quotes from car insurance companies the phrase “incidence rate” will be brought up fairly frequently. Many consumers do not fully understand what this means, but in reality it’s just a easy procedure to determine the risk level of your vehicle by using the statistics that are given by auto industries that show how likely your car is to be involved in an accident, be stolen, or the severity of damage it suffers from a small accident.
When one applies for insurance the company is not only interested in their driving record, but also in the kind of car they drive. There are several factors that may affect the incidence rate of a car, such as its popularity among car thieves due to value after disassembly, weaknesses that could lead to accidents or failures, or the temptation that the driver will engage in reckless driving due to superior performance levels.
To determine the level of risk associated with your car the insurance company will look at professionally produced statistical lists supplied by the auto industry. These lists include information such as the universality of parts, failure rates, and the number and types of accidents the car is generally involved in. These have all been thoroughly researched by experts in the field who specialize in statistical analysis.
Sports cars tend to be more likely to be involved in traffic or speeding violations, but any very light colored car is also a leader in accidents. Larger cars are more damaging to others in accidents, while smaller ones receive more damage. The center of gravity of a particular model may make it more likely to flip or lose control. You should be aware of any statistical information that could raise your insurance rates based on the type of car you have.
But what if you really had your heart set on a certain vehicle type, only to find out that the specific model was more prone to auto thefts than others? Obviously, your insurance rates will be higher than if you had chosen a different vehicle. If a vehicle is stolen, your insurance company must reimburse you for the full fair-market value of the vehicle. But by installing anti-theft devices, alarm systems, and even GPS systems, you can lower the theft risk and help lower your insurance premiums.
If your car is a color that’s more likely to be hit by another car, such as white, you can add uninsured or underinsured motorist protection to ensure that you are covered in case the other driver isn’t. Most of the time the insurance company will allow a lower rate in this case as they’re protected from extra costs. Remember that even though it’s illegal to drive without insurance it’s still very common to find people who don’t think they need it. You have to think ahead to protect yourself in this situation.
It’s very important that you know what the incident rate for your car is for all of the situations mentioned above. These would be accidents, theft, and the sad but possible possibility that your car could be completely destroyed in a car accident. Everyone might want to ponder their car choices a little bit more, and maybe choose the slightly more conservative car over the flashy white or yellow sports car. This could save you money in the long run, and it might actually help make you safer!
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