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Determining the cost of car insurance is a complex calculation, which must take into account various elements related to the vehicle, the insured person and his / her residence, as well as the options chosen for coverage.
What, then, are the elements that contribute to the formation of the price of a third party liability policy? This is important information for those who are about to request a quote for a car liability, to understand the importance of the correctness of some information requested when calculating the quote and which, once the policy is signed, becomes an integral part of the insurance contract.
The 5 factors that affect the cost of insurance
The estimates for RCA insurance are always long to fill out: a lot of information is required and often very detailed. As you will discover, this is fundamental information to define the cost of the insurance policy. For this reason, they require a moment of attention and patience to obtain a reliable estimate of the value of the insurance premium.
The five factors that affect the price of car insurance are as follows:
Insurance position of the policyholder
Type of insurance coverage desired and ancillary guarantees Residence and personal characteristics
Type and characteristics of the vehicle to be insured Use of the vehicle
Let’s see, in detail, what it is and how much all these factors affect the final cost of the policy.
Cost of car insurance: the insurance position
One of the elements that have the greatest impact on the cost of car insurance is the policyholder’s insurance position. It is defined based on the class of merit: the attestation of the claims of an insured.
According to the Bonus Malus system, each insured motorist or motorcyclist is assigned a class of merit on a scale from 1 to 18 based on driving virtuosity, i.e. the number of accidents caused over the years. 1st class is achieved by the most virtuous and is also the least expensive insurance position.
On the contrary, the 18th class is dedicated to those who have registered a high number of accidents quickly and, for this reason, will have to pay the greater risk that the insurance company has to face for its coverage. New drivers conventionally start from the 14th class.
In the event of no claims, one class is advanced per year. In the event of a claim the following year, there will be downgraded by two classes.
Type of insurance coverage desired and ancillary guarantees
When it comes to calculating the cost of car insurance, the choices on coverage and ancillary guarantees are elements that decisively affect the final estimate. Here are the choices that lead to a price increase:
Free, expert or exclusive driving – The three types of driving that the policyholder can choose affect the policy’s value. Free driving is the option that increases the RCA the most and is to be chosen if the insured vehicle is used by more people (including new drivers and young people under 25). If the car is only used by people over 25, you can choose the expert driving option. Exclusive driving is the cheapest option for those over 25 who are not new drivers.
Still, you must be sure that the vehicle is not used by anyone other than the contractor (penalty: compensation by the Company in the event of an accident).
Black box – If you choose to install the black box, you can get discounts on the policy.
Maximum – If you want to increase the economic limit of insurance coverage, obviously, this will affect the cost of your premium. The minimum ceiling currently set by law is as follows: € 6.07 million for physical injuries, € 1.22 million for property damage.
Ancillary guarantees – Driver accidents, legal protection, roadside assistance, Kasko, natural events… Widening the scope of coverage has its cost.
Type and characteristics of the vehicle to be insured The type of vehicle to be insured and its characteristics influence the calculation of the cost of compulsory RCA insurance (car or motorcycle) and the cost of ancillary guarantees. Here’s what increases the budget of your RC car:
Model, year of purchase and registration – These are characteristics that weigh above all on the price of ancillary guarantees (kasko, fire theft) since they affect the value of the vehicle and, therefore, on any compensation in the event of an accident with a fault or case of theft, damage or destruction of the vehicle by fire.
Displacement – the kW or horsepower of the engine, the displacement of the vehicle, in a nutshell, contributes to the determination of the cost of the compulsory Motor TPL insurance premium.
Power supply – Have you ever wondered why you have to specify the type of power supply of the car to be insured in the quote stage? The answer lies in the consequences of an accident in the presence of a gas-powered car. The risk of the tank exploding makes compulsory insurance more expensive.
Equipment – A car equipped with anti-accident systems is undoubtedly an extra safety that allows you to lower the costs of basic RC. The same goes for the equipment of the latest-generation anti-theft device.
Residence and personal characteristics
It may seem strange, but the RCA estimates can vary up to several hundred euros depending on the residence city. Taking out a policy for a car that circulates in one of the provinces where accidents are more frequent, for a company, is a risk that increases the premium.
The same applies to those under 25, who are considered inexperienced driving and, as such, more exposed to the risk of an accident.
Use of the vehicle
How many kilometres have you travelled in a year? Is the car in the garage or parked on the street when not in use? These are further details that affect the cost of insurance and which are defined in the RCA estimate.
