Car Insurance Pricing Plans

Pricing Plans

Except for government-mandated liability insurance, most car insurance plans charge a premium based on several risk factors that are likely to have an impact on the frequency of occurence or on the expected cost of future claims. The premium usually depends on the car characteristics, the coverage selected (deductible, limit, covered perils), the usage of the car (commute to work or not, annual distance driven), and the profile and driving history of the drivers (age, sex, marital status, trafic violations and accidents).

For mandatory liability insurance, in some countries risk factors are taken into account (giving varying prices) and in others a fixed rate is charged regardless of the individual circumstances.

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