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How Insurers Determine Your Insurance Quote

How Do Insurers Determine My Insurance Quote?

Being fast and irresponsible may be great for your social life, but not for an insurance quote. Insurance is all about balancing risk between you and your insurance company. The more risk you are to them, the more expensive your insurance quote will be.

Although each insurer measures your risk differently, they use similar demographics to calculate your insurance quote.

A List of the Demographics Used to Calculate an Insurance Quote

1. Your Gender.

On average, men are faster and more irresponsible than women, which means a quote for a man will most likely be more expensive than for a woman. Unfortunately, there’s no way around it. Whether it’s car or life insurance, men will pay more.

2. Your Age.

The elderly are less of a risk when it comes to a car insurance. Younger drivers display more high-risk behaviour, so their insurance is more expensive. When it comes to life insurance, however, the older you are, the higher your risk profile is. Younger insureds get a cheaper life insurance quote.

3. The Value of the Asset.

Whether it’s home insurance or assurance, you pay less for insurance if the value of the asset being insured is low. If the insurer has less risk of paying out more money, your insurance premiums will be cheaper. For life insurance, the more you insure your life for, the more you’ll pay on a life insurance quote.

4. The Location of the Asset.

Whether it’s a car, home, or moveable possession, the location influences the asset’s risk of theft. If the asset is in a high-crime area, your insurance quote will be more expensive given the insurer’s risk of theft. The location of the home also influences its risk of natural disaster. If it’s in a high-risk zone, you’ll pay more for home insurance.

In a competitive market, comparing prices, no matter your demographics, can still yield significant savings. To get insurers to contact you with an insurance quote, fill in our form.

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