Which of the following factors influence your auto premiums?
Asked by: Dillan Haag | Last update: February 25, 2025Score: 4.9/5 (24 votes)
What are the factors which affect the premiums on auto insurance quizlet?
-Your age: younger drivers have less experience and pay higher premiums. - Your mileage: the more miles you drive, the higher the premium. -Your driving record: individuals with poor driving records pay more than individuals with good driving records. -Location: insurance is higher in larger cities.
Which of the following affects car insurance premiums?
Car insurance premiums are primarily influenced by the driver's age and the vehicle's service record. Car color does not affect premiums, while the year of purchase can influence costs due to vehicle value. Understanding these factors can help in managing insurance expenses.
What are the 3 factors that determine the premium for a particular policy?
The three factors that determine the premium for a particular life insurance policy are: Age of the policyholder, overall health, and lifestyle of the policyholder. Age of the policyholder: Generally, the younger a person is when they purchase life insurance, the lower their premiums are likely to be.
What factors influence the cost of premiums?
5 factors that affect what you pay for auto insurance
What affects my car 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 and your driving record.
What are the factors of factor cost?
Factor Cost is the cost of the factors of production (that is, labour, capital, land and enterprise). This is not the same as the cost the buyer pays at the till.
What are the factors of insurance premium?
The amount of premium you need to pay will depend on the amount of coverage and deductible. It will also depend on your location, credit score, and how many insurance claims you've filed in the past. The more coverage you get, the more expensive the premium will be.
Which of the following should reduce your auto insurance premium?
Deductible. Some kinds of coverage have deductibles. A deductible is the amount of loss which the insured is responsible to pay. You usually pay a lower premium if you choose a higher deductible.
What 4 factors impact the cost of your life insurance premium?
Life insurance costs are personalized and depend on factors like age, health, coverage needs, and the type of policy (term or permanent). Younger and healthier individuals generally qualify for lower rates.
What are 4 factors that influence your auto insurance rates?
- Location.
- Driving record.
- Credit history.
- Gender.
- Age.
- Marital status.
- Claims history.
- Car make and model.
What does the insurance premium depend on?
Insurance companies consider many factors while determining the premiums, particularly in case of life insurance. These include the chances of claims being made by the policyholder, medical conditions, smoking and other lifestyle habits, area of residence, nature of employment and so on.
Which of the following could cause your car insurance premium to increase?
Car accidents and traffic violations are common explanations for an insurance rate increase, but other reasons why your car insurance rate can go up include changing your address, adding a new vehicle or driver, increases to claims in your ZIP code, and increases to car repair/replacement cost.
Which of the following affects one's car insurance premium?
In conclusion, among the options listed, the year the car was purchased, age of the driver, and vehicle's service record can all significantly impact your car insurance premium.
Which behavior factor would influence the premiums of auto insurance?
Your driving record serves as a report card for insurance companies. It reflects your behavior on the road, and it's a primary factor they consider when determining your premium. Accidents and Violations: If you've been involved in accidents or received multiple tickets, it signifies potential risks for insurers.
What is not a factor of determining your homeowner's insurance premium?
The states of California, Hawaii, Maryland and Massachusetts prohibit the use of credit scores as an insurance rating factor, but credit is commonly used in determining premiums almost everywhere else.
Which of the following can affect your insurance premiums?
- Age. Age is a very significant rating factor, especially for young drivers. ...
- Driving and claims history. This rating factor is straightforward. ...
- Credit score. Credit is a major — but often overlooked — rating factor. ...
- Location. ...
- Other personal demographics.
What factor affects insurance premiums the most?
- Driving record. ...
- Garaging of the vehicle. ...
- Gender and age of drivers. ...
- Marital status. ...
- Prior insurance coverage. ...
- Miles driven and use of vehicle. ...
- Make and Model of vehicle. ...
- Licensed drivers in your household.
What 2 things could reduce your insurance premium?
Maintain a good driving record
Always avoid speeding, getting into accidents, and other driving incidents. Not only do you prevent expensive speeding tickets or other moving violation costs, you also help keep your insurance rates lower by proving you're a less risky driver.
What is the key factor used to determine insurance premiums?
Key Takeaways
Insurance companies use credit scores and history to determine your premium on insurance. It is very difficult to pinpoint exactly how to get the best insurance score, but it is possible to improve it.
What are the factors of risk premium?
The five main risks that comprise the risk premium are business risk, financial risk, liquidity risk, exchange-rate risk, and country-specific risk. These five risk factors all have the potential to harm returns and, therefore, require that investors are adequately compensated for taking them on.
What factors determine premium Quizlet?
Some factors that affect your insurance include age, gender, miles are driven, and marital status.
What are the 3 major factor costs?
Factor pricing typically involves categorizing the costs associated with a product or service into three distinct components: materials, labor, and overhead costs.
What are common factors in factor analysis?
In a very broad sense, “common factor” analysis (or “principal axis factoring”) is used when we want to identify the latent variables that are underlying a set of variables, while “principal components” analysis is used to reduce a set of variables to a smaller set of factors (i.e., the “principal components” of the ...
What is cost factor?
noun. : an element or condition related to a unit of product or to an activity or to a service for which money must be spent (as raw material, direct labor, and burden)