As you may know, Insurance prices are calculated using a variety of “Rating Factors“.
Insurance companies have begun to look at a new way to better personalize Insurance rates, based on drivers ability to drive safe, rather than using the other rating factors. These programs reward the safe drivers, and help these drivers save additional money on their car Insurance premiums.
These rating factors help Insurance companies to determine the potential risk, and calculate the Insurance prices based on the risk. This price is your personalized insurance rates.
Rating factors that are used include location, driver age, gender, and marital status, driving history and experience, and the type of vehicle and coverage desired.
Thus, there isn’t a one size fits all policy. Despite whatever Tik-Tok might tell you… sorry, cheap shot… Tik-Tok is the black hole where my soul resides.
The natural question is, how do these rating factors impact the premium, or more to the point, why?
It is all about statistics!
What is personalized insurance?
Personalized insurance refers to customized insurance plans tailored to meet the specific needs of individual policyholders. Unlike one-size-fits-all insurance policies, personalized insurance takes into account various factors such as age, driving history, vehicle type, and coverage preferences to provide a unique policy that fits your lifestyle and budget. With personalized insurance rates, you can ensure that you’re only paying for the coverage you need, helping you save money while still maintaining adequate protection. By working with an experienced insurance agent, you can explore different coverage options and discounts to create a policy that suits your needs perfectly.
- Factors considered in personalized insurance:
- Age
- Driving history
- Vehicle type
- Coverage preferences
Benefits of Personalized Insurance Rates:
- Tailored coverage options
- Cost-effective premiums
- Customized discounts based on individual circumstances
Personalized Insurance Rates: What that Looks Like
STATISTICS STORY – Personalized Insurance Rates
This is Jim! He is 23 years old, single, ready to mingle and just bought his first car! Yay Jim! This stylish Floridian lives in Miami and is ready to cruise South Beach with his sweet new wheels. He has one minor violation on his record and with his fresh new beard he is ready to roll!
Based on the information Jim has given us, you’ll notice multiple factors that will give us his personalized insurance rates.
- He – Males typically pay more for insurance than their female counterparts. Why?! Statistically speaking young males get into more accidents than females. Poor Jim…
- Jim is young! Young drivers are notoriously poor drivers and the stats don’t lie. Once Jimbo crosses 25, those rates will dramatically improve.
- Jimmy-Boy is single as a pringle! Insurance companies like stability, and marriage says stability(whether it seems fair or not). Married males tend to get in fewer accidents, and those accidents usually are far less costly in property damage.
- Florida-Boy. Hey, who doesn’t like the Sun?! But, it’ll cost ya! Living in a high-density state like Florida and a city as populated as Miami will raise those premiums.
- Violations! Jim has been convicted of no style violations, but unfortunately, he has a moving violation… one that requires him to carry an FR-44. Violations can impact your rate for 3 to 5 years! Worry not, that isn’t forever.
All of these factors combine to find Jim his personalized insurance rate!
Top Average Monthly Auto Rates in Florida for Jim- Male, Young, Single, in Miami with a Violation on Record
| Car Insurance Company | Average Monthly Payment |
|---|---|
| Dairyland | $187 |
| Bristol West | $215 |
| 21st Century | $223 |
| Nationwide | $291 |
Personalized Insurance Rates: What is a “Drive Program?”
Several insurance companies have started to use driving programs to get personalized insurance rates, all programs have different names.
Progressive’s drive program is called “Snap Shot”. Travelers use a similar program called, “Intelli Drive”, and National General uses a program called “Dynamic Drive.”
These programs offer a certain percentage off the start of a policy (usually 10% off the premium), and after your driving is monitored, you could earn up to 30% off of the renewal premium.
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Personalized Insurance Rates: What Do the Driving Programs Monitor?
The drive programs such as Snapshot, and Intelli drive generally offer an App or a Plug-In device that monitors driving habits. The things that they look for are hard braking, fast acceleration, and the times the vehicle is most driven. Drivers can view their driving status throughout the period they are monitored to see how they are being scored.
Once the program gathers enough data to accurately depict the driver’s habits, the app/plug-in will no longer be needed and a renewal offer will be generated.
At your renewal, you will be sent a new premium based on your driving. If you did well you could earn 30% off of the total premium, if you did not do so well, your premium could end up increasing.
Q1: What are personalized insurance rates?
Personalized insurance rates are customized premium prices based on individual factors such as age, driving history, and coverage needs, ensuring a more accurate reflection of risk.
Q2: How can I get personalized insurance rates?
To get personalized insurance rates, you can visit our website or call us at 1.888.445.2793 to speak with one of our representatives.
Q3: Why choose personalized insurance rates over standard rates?
Personalized insurance rates offer more accurate pricing based on your unique profile, potentially saving you money and ensuring you have the coverage you need. Call us for details.
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Last Updated on by Marlon Moss