Formula of Car insurance renewal

[Sdf4786k]

Can someone here who does insurance provide insights in how to calulate a insurance policy for car renewal ?

 

Year to year with the age of the car, if I scrap my car or total my car, its market value .

 

Why is it that I am paying more each year intead of less?

 

Somehow I get the feeling I am paying to the insurance company and it all depends on the insurance company to decide how much they want to increase their revenue.

 

I have yet to hear of insurance company that went bankrupt because that year there were so many car accident that the comapny cannot sustain...

 

 

[Adrianli]

Depends on company to company. If this company has many cars getting into accident, then u are paying for other ppl's accident claims. So its wise to shop ard when renewal. Or get quotes from others to demand same from the current company, thatz what I do.

 

I compared, got current company lower my excess and give me fuel vouchers.

[Watwheels]

Get a broker to gibe you a few quotes. Dan you will get to see what these various companies offer. I can pm you my contact if you need one.

 

They do risk assessment on your age. Usually it's "cheapest" at around age 40. Dan what kinda of coverage eg. comprehensive or whatever. Dan Excess, more excess the quote will be cheaper, less excess you are willing to pay means pay more premium. NCB protection blah blah blah....you will end up paying more for more coverage. LoL... But dun kpkb when you opt for less and when something happens(touch wood) you are getting less coverage. In short you pay for what you get.

 

If you are like me willing to read the fine print on their website to see what they offer in their comprehensive coverage you will see the difference.

 

You are paying more and more could be you only look at one quotation from the same company. If you look at a couple of quotations it will open to more options. If you can get a few quotes to compare.

Edited August 4, 2015 by Watwheels

[EasyToRemember]

yah depends from company to company.. is it time for renewal again?

[Eyke]

no point knowing formula, just have to get quotes from all the insurance companies.

 

tip: opt for the following to reduce premium:

 

- dun insure COE/PARF

- 3rd party only

- higher excess

- older-drivers-only clause

[flashbang]

Premium = (Projected Company Profit + Desired Bonus) / Number of Policyholders