car insurance 101（3）

 Calculation of the insurance premium

Loss of motor vehicle insurance premium

The auto insurance premium is linked to many factors, the most important being the number of kilometers driven.

Initially, motor vehicle insurance often charged an average premium, regardless of how the car was used.

Insurance companies later provided “estimated mileage” for motor vehicle insurance and estimated mileage under extreme conditions to determine insurance premium levels.

Odometer

Once the car has an odometer, the insurance company offers car insurance classified by mileage, similar to buying gasoline. When the odometer reaches the prescribed mileage, insurance liability ends.

Some people think that someone can tamper with the odometer to deceive the insurance company. Although the new electronic odometer is difficult to change, they can disconnect the odometer from the power supply and then connect it, so that the mileage shown in the odometer is less than the actual mileage. . Many insurance companies will protect themselves against this risk, for example by requiring the recording of each mileage and by preventing insurance fraud by law.

GPS positioning system

In 1998, the insurer launched an experimental project to install a GPS positioning system on the volunteer's car. Monitor their driving behavior via the device and communicate the results to the insurer via a cordless telephone. The insured was concerned about the location and diversion of the project, and the GPS positioning system was very expensive. Many motor vehicles now use GPS as the standard configuration to prevent theft.

The loss of motor vehicle insurance premium is also linked to many factors, such as the factors of the vehicle itself: type, object, old and new, safety configuration, driving area, volume exhaust, parking space, etc .; driver factors: gender, age, driver age, violation records, claim records, marital status, occupation, health status, personal preferences, etc. Different countries use the above factors differently.  insurance premiums in 2002 only affected commercial and non-commercial vehicles. Later, gradually increased conditions, such as age coefficient, model coefficient, driver coefficient, etc., different insurance companies refer to different coefficients.

Liability insurance premium

The liability insurance premium generally adopts the fixed insurance premium method, and the maximum amount of compensation varies according to the different types of vehicles and the nature of the use.

Compensation for loss of motor vehicle insurance

Total vehicle damage:

Full or insufficient insurance, compensation = (amount of insurance for residual value of the vehicle) × rate of liability in the event of an accident × (rate of 1 deductible)

In the event of excess insurance, compensation = (actual value - residual value of the vehicle) × accident liability rate × (rate of 1 deductible)

Partial losses:

When the insurance amount is equal to the purchase price of the new car, the compensation = (actual repair cost-residual value) × accident liability rate × (deductible rate 1)

When the insurance amount is lower than the purchase price of the new car, the compensation = (actual repair cost - residual value) × (insurance amount / purchase price of the new car) × liability in the event of an accident × (rate of 1 deductible)

Rescue costs

When the insurance amount is equal to the purchase price of a new car, the recovery costs = actual recovery cost × accident liability ratio × (actual value of the insurance vehicle / actual value of recovery property) × (rate 1 deductible)

When the insurance amount is lower than the purchase price of the new car, the rescue costs = actual rescue cost × accident liability ratio × (insurance amount / purchase price of the new car) × (actual value of the insurance vehicle / actual value of the salvage property) × (1-deductible rate)

Compensation for liability insurance

When the amount of compensation to be paid by the insured in accordance with the accident liability ratio is less than the compensation limit, compensation = the amount of compensation to be paid × (rate at 1 deductible)

The insurer is not required to pay compensation that does not comply with the regulations without the insurer's consent. The indemnification of civil liability insurance adopts the principle of a single indemnity for the closure of the file, so that any indemnity insurer whose insured adds the victim is no longer responsible.

The remaining part of the property of the insured vehicle and of the third party after the loss of the property can be negotiated with the insured and deducted from the compensation.

Subrogation

Since the fault of the third party results in an insurance accident, the insurer may first indemnify and obtain the right to recover from the third party at the request of the insured.