Factors like profession, gender and marital status, among many others, are now being used by insurers to determine the premium. ET shows how you can bring down your auto insurance premiums
Are you a doctor? Do you have a covered parking lot? Do you use your car sparingly? If your answers to these questions are yes, you may get a discount on the insurance premium on your car at the time of renewal.
Faced with huge losses in their motor portfolio, general insurers are exploring various options to reduce the losses. Differential pricing is one of the options considered, which means premiums will go up if the insurer believes the incidence of claim is going to be higher or vice versa.
“Traditionally, car premiums were decided upon the basic factors i.e. engine capacity, age of the car and geographical zones. Over the last four years, insurers in India have started using several other ‘asset-based’ parameters – such as the type of fuel used in the car, effective anti-theft devices etc.
Further, few insurers now are trying with ‘demographic’ parameters as well – these include the occupation of the insured, the age of the driver/insured etc.,” says Sanjay Datta, chief, underwriting & claims, ICICI Lombard.
In fact, industry-watchers say your marital status and gender, too, could affect the premium figures. “In terms of demographic parameters, we have started taking into account the insured’s age, gender, occupation and driving experience. Even marital status plays a role in influencing the premiums.
For instance, married individuals in the age group of 32-60 are entitled to discounts as they are perceived to be more responsible drivers and we are thinking of using this as a rating parameter. They can also be counted upon to take good care of their vehicles.
Discounts on the basis of such personal information can go up to 20%. Likewise, the loading on premium, too, can be as high as 20%,” says Madhukar Sinha, national head, personal lines, Tata-AIG General.
However, the possibility of discount in one category being cancelled out due to loading in another cannot be ruled out. For instance, higher premium due to the fuel type may nullify the discount earned on account of occupation or age.
http://economictimes.indiatimes.com/personal-finance/insurance/analysis/pay-a-lower-car-insurance-premium-if-you-are-married/articleshow/18040231.cms
