Car insurance, price calculation

Ensuring your vehicle is an obligation for all drivers who use French, Belgian and more broadly European roads. But contrary to what one might think, basic car insurance is not used to protect the car. Mandatory since 1958 and governed by the Insurance Code, car insurance is aimed, according to the legislation, at “guaranteeing damage caused to third parties and passengers”.

What are the segmentation criteria?

Segmentation criteria refer to the parameters considered to evaluate the cost of car insurance. There are 2 kinds of criteria, the first one is related to the vehicle and the other to the driver.

Segmentation criteria related to your vehicle

Make, power and model of the vehicle: there are cars that have statistically more misadventures than others. As a result, repair costs or parts replacement are more expensive.

Vehicle fuel: Diesel cars generally travel more kilometres than gasoline cars. To this end, the former present more risks and are sanctioned by a higher rate.

The other additional criteria: the type and use as well as the age of the vehicle.

Segmentation criteria related to the driver

Driver’s place of residence: A car in a rural area does not present as much risk as a vehicle in an urban area. The latter pays more than the first driver’s age: due to the low experience of young drivers, they must pay more.

The other additional criteria: Family situation, Profession, Occasional driving of the vehicle by other persons, VAT liability, claim history, Place where the vehicle is usually parked and finally Frequency of use of the vehicle.

Is online insurance cheaper?

It should be noted that online services appeal to most consumers. This is since the rates are more accessible compared to the offers of physical agencies. The concept is more practical since it is accessible at any time. It is not surprising to see people opting for online insurance. Generally, there are no fees on the web, whereas they can reach 4% in the branch. The non-existence of costs means that these online platforms do not pay rent for a space and employ the bare minimum of staff. Thanks to all this, online insurance offers more affordable prices for all budgets.

Who offers me the best service in the event of a claim?

It is not easy for a motorist to find the best coverage for the large number of insurance companies on the market. It should be noted that good insurance is both cheaper and offers excellent coverage. To find the best service in the event of a claim, the most recommended solution is to use an insurance comparator. It is a tool for comparing proposals for different insurance rates in a very short period. Thanks to the Internet, it is now easier to find out about a contract and find the insurance that is best suited to each need.

What is an insurance broker and agent?

An insurance broker works with various insurance companies. To this end, it has the ability to propose offers in line with the driver’s requirements. At the same time, he is an emissary of his clients to the company and always works in their interests. On the other hand, an insurance agent is an employee of an insurance company and can only offer the products of his employer. Therefore, it generally acts in the interests of the latter. A driver is obliged to insure his vehicle to third parties in all Member States of the European Union. Car insurance must cover material damage up to €457,000 and unlimited bodily injury.

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