Do we know the coverages and the factors taken into account for any type of insurance contract? Analysis of auto insurance.

The multitude of insurance and factors to consider in each of them could get to fill an encyclopedia if you will study actuarial detail. When you buy insurance you have to take into account the coverage you need and what are the factors which may aggravate the premium or price of the same.

Insurance, reinsurance, coinsurance.

For starters there are all kinds of insurance that cover almost anything. Some are personal (accident, life, death, illness), things (cars, home, etc.) and facing the disasters which usually occupies the Consortium ‘s Compensation Insurance, which covers higher risk level, cases of calamity, insolvency of the insurer and others. In each premium for each type of insurance, there’s a part that goes to the CCS (Insurance Compensation Consortium) and so each member pays an infinitesimal part of the risk in case of calamity, disaster, bombing or any act of very high magnitude.


Also there are many insurance companies can also operate its own reinsurance (which is something like an insurance outsourcing, as the company reinsurer said it had already secured the first insurer) or coinsurance (when insurance is covers from several insurance companies). All this is combined with the large amount of information that may be available: advertising in the mail, brochures own insurance company, expert articles in magazines or newspapers and the World Wide Web (Internet).

Auto Insurance

Analyzing, for example, auto insurance , we have the chance to do all risk, with excess or third parties. The premium is more expensive to pay the full insurance that covers, as its name indicates, virtually all the risks that occur in an accident. In the comprehensive insurance with excess insurance covers everything from a certain amount paid by the insured and that is what is called franchise. For example, if you hire a full insurance with a deductible of 500 euros, any accident or blow involving a smaller number of those 500 euros paid by the insured person and anything above that amount, the insurance company.

The third party insurance covers damages done to the other involved vehicle damage and the need to pay the insured. Usually when a car is new, newly registered, the insurance contract that is to all risks. As life goes by the same can be changed with excess, which is the type of insurance could also be used on vehicles pre-owned 1 year to 2, and third, which is usually the insurance contract in second-hand vehicles or when they have more than 5 or 6 years.

The calculation of the premium

To calculate the premium factors to consider are varied and can be intrinsic or extrinsic. The intrinsic factors relate own car and vary from the type of car, engine size, horsepower, color, whether or not metallic paint and accessories you have. For example, a red car would pay more premium than a white car as actuarially red is associated with arousal and blood while the color white is cheaper because it is best seen on the road.

As for the extrinsic factors are associated with all that is external to the car: driver’s age, number of years of driving license of the usual driver, sex of driver, vehicle use: if you are self-employed or professional, etc. The younger is a conductor or fewer years of driving license has more premium will be paid by the insurance contract. And a man always pays more premium in the same conditions as a woman.