Blackbox Auto Insurance by AnaKhabibati


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									Blackbox Auto Insurance

So what is all this regarding the use of Blackbox technology in the estimation of auto
insurance rates nowadays - when did this all begin and how does it work - and most
importantly, how will it have an effect on you and your auto insurance quote?

 Back in the days before computers, auto insurance was personal and subjective. The
insurance agent actually talked to the man he knew within the workplace, called in a
few favors, and got their best customers the best rates. Male drivers beneath twenty
five were charged a lot. Young females, being perceived as less risk, were charged
much less.

 Currently, in the laptop age, auto insurance companies have massive databases of
accident and claims records. By range-crunching these records they can tell what kind
of person is more likely to be a smart driver and how much person is more likely to be
an accident risk. This Black Box technology gives them insights into the background
and behavior of the people who they suppose ought to pay more for their auto
insurance. For instance, individuals who carry minimum limits of liability are literally a
bigger risk than people who carry a minimum of 50/one hundred ($50,000 per person,
$a hundred,000 per accident). And statistics have shown that those with unhealthy
credit scores are more likely to be in a crash.

 In most states, auto insurance is regulated by the state. But that's only the beginning.
The state uses tables of 'loss ratios', exposure, and different conjuring words, to justify
what the auto insurance firms want you to pay. Every once in a whereas, just to throw
you off, they can even announce a state-wide REDUCTION in auto rates. When they
do, hold onto your wallet!

 After the state sets the bottom rate, the individual companies negotiate with them to
control their explicit rates, claiming either a better or worse loss ratio than average. So,
when the elections are over, the legislature permits exceptions, amendments, and
endorsements to jack them copy to at least one thing the auto insurance corporations
can create masses of money from.

 And theres more. Most states permit individual corporations to set their own rules to
determine who gets charged what. Thus, one auto insurance company rates a specific
driver one means, whereas another company rates the same driver differently. Each
company sets those underwriting rules.

 Therefore how are auto insurance rates determined? First, the state sometimes gets
involved. Then corporations toss the dice between staying competitive and creating as
much profit as they can for their stockholders. And ultimately, now that the 'Black Box' is
here, auto insurance companies are taking a closer look at every driver. Career, credit
score, past record, even the city you reside in helps 'drive' the rates. They need even
found that those who opt for low limits of liability are bigger risks than those that select
higher limits. Thus, by raising your liability limits, you may truly lower your auto
insurance rate.

 For a few, the new 'Black Box' technology reduces rates by as much as 20% over
those corporations not using it. The dangerous news is, since credit scoring can play a
part in ALL auto insurance rating, the additional severe your credit score, the higher
your auto insurance can go. Not a lot of 'discounts', no more 'loyal client' credits, and
such like. You may be rated from head to toe, placed in a group of drivers nearly
identical to you, and charged accordingly.

Therefore watch out for insurance quotes nowadays becuase the insurance firms will
have a lot of detail on you from this technology - there is no escaping the facts so no
matter what you are doing when wanting for a quote, just be honest and forthcoming
and take the information above under consideration when applying.

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