What factors affect automobile insurance premiums quizlet?

Factors that can affect an auto insurance premium​ are: -Value of the insured​ vehicle: the higher the value of the​ car, the higher the premium. -Repair record of the​ car: the more easily car damage can be​ repaired, the lower the premium. -Your​ age: younger drivers have less experience and pay higher premiums.

Which of the following is a factor that will affect your auto insurance premium?

Some factors that may affect your auto insurance premiums are your car, your driving habits, demographic factors and the coverages, limits and deductibles you choose. These factors may include things such as your age, anti-theft features in your car and your driving record.

What factor affects insurance premiums the most quizlet?

Age of home affects insurance premiums the most.

What are the 7 factors in determining the premium for automobile insurance?

Factors Affecting Car Insurance Rates

  1. Age. Age is a very significant rating factor, especially for young drivers. …
  2. Driving history. This rating factor is straightforward. …
  3. Credit score. Credit is a major — but often overlooked — rating factor. …
  4. Years of driving experience. …
  5. Location. …
  6. Gender. …
  7. Insurance history. …
  8. Annual mileage.
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What are three factors that influence auto insurance premiums?

The 3 biggest factors that affect car insurance rates are state coverage requirements, age, and the car’s make and model. The more coverage you’re required to buy in your state, the more you’ll pay for car insurance.

How do you calculate insurance premiums?

Insurance Premium Calculation Method

  1. Calculating Formula. Insurance premium per month = Monthly insured amount x Insurance Premium Rate. …
  2. During the period of October, 2008 to December, 2011, the premium for the National. …
  3. With effect from January 2012, the premium calculation basis has been changed to a daily basis.

What determines your insurance premium quizlet?

Factors that can affect an auto insurance premium​ are: –Value of the insured​ vehicle: the higher the value of the​ car, the higher the premium. -Repair record of the​ car: the more easily car damage can be​ repaired, the lower the premium. -Your​ age: younger drivers have less experience and pay higher premiums.

What is the purpose of insurance quizlet?

The purpose of insurance is to protect against losses caused by pure risk. This is accomplished through the insurance contract, which requires one party to pay a specified sum to another if a previously identified event occurs.

What is the best way to buy a car quizlet?

The best way to buy a car is with cash.

What does it mean if a loan is amortized What do the loan payments represent quizlet?

When a loan is amortized it means that the principal is: repaid through a series of equal loan payments. As more principal is repaid, the amount of interest is: reduced, and a larger portion of the payment is used to repay the principal.

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What factors affect health insurance premiums?

Five factors can affect a plan’s monthly premium: location, age, tobacco use, plan category, and whether the plan covers dependents. FYI Your health, medical history, or gender can’t affect your premium.

What makes insurance increase?

The main rating factors for auto insurance are: Geographical location, age, gender, years of driving experience, credit history, vehicle type and miles driven annually. Young adults and elderly drivers are more likely to cause an accident and end up paying higher premiums because of their inexperience.

What is a premium on insurance?

A premium is the amount of money charged by your insurance company for the plan you’ve chosen. It is usually paid on a monthly basis, but can be billed a number of ways. You must pay your premium to keep your coverage active, regardless of whether you use it or not.

With confidence in life