There are numerous factors that affect the cost of your insurance, but the main one is the actuarial table. When determining car insurance quotes, your insurance company uses these tables to figure out your premium. That makes actuarial tables very important.
An actuarial table is an algorithm or mathematical equation used to determine the cost to insure you. It incorporates several demographic factors such as gender, age, and the type of car you drive. Each of these factors tells your insurance something about you. Their actuarial tables have massive amounts of data, pre-digested and analyzed to quantify the likelihood that you will be involved in an accident. These tables will estimate the amount that an accident might cost, should you have one. These estimates are based on the propensities of the demographic to which you belong.
Older folks are less likely to engage in high risk behavior like driving under the influence or reckless driving. Drivers in the sixteen to twenty-five year old age group have less experience driving and are therefore not as good behind the wheel.
Women tend to be well-positioned for good deals on car insurance quotes. Actuarial tables imply that women are less likely than men to drive fast. They also own less-expensive cars that don’t cost as much to repair. Because they don’t drive as fast, any accidents they have cause less damage, meaning the insurance company usually pays less for a claim by a woman driver.
A more expensive car will obviously cost more to repair than a cheaper one. It will also cause more damage if it is involved in a collision while going 120 mph. Believe it or not; people with a tan car will pay less than those with a red car because actuarial tables suggest that they are less likely to have a costly accident. As with women drivers, those driving tan cars are less likely to speed and their accidents cost less to settle. If a woman driver has a tan car, she will reap the rewards of both demographics. If she is also over fifty years old, she will enjoy yet another discount. This is conversely true for young drivers. Every factor that adds to the cost of settling a claim will add to the cost of their insurance.
Although insurance companies don’t have fortune tellers on their payroll, actuarial tables are the next best thing. They accurately predict the likelihood and severity of accidents among a particular demographic. There are various options available to lessen your costs, like safe-driving courses and driving cheaper cars that do not require collision insurance. A slight modification in your demographic can make a big difference in your premium.