What Does Incidence Rate Mean
August 7, 2009
When you are shopping for car insurance quotes you may hear the term incidence rate come up from the agent or either listed on their website. Many people do not understand what this term means but it is really a simple process for examining your vehicles risk level.
There are certain cars and trucks that have a higher incidence for theft, accidents, or other driving violations such as speeding or wreck less driving. During preparation of your insurance quote, not only yourself is being checked by the insurance company but also your vehicle.
The insurance company has a list of statistics that are professionally prepared by the auto industry that shows what cars are most likely to be stolen, which ones are involved in more accidents and what type of car is being driven when the most driving violations occur. This list helps the insurance companies determine what risk level your vehicle is and how this will affect your policy rates.
We all know that sports cars are more likely to be driven recklessly or stopped for moving violations such as speeding but did you know any white car or light colored car can be involved in more accidents? The information on this n=must also be known by you. You can speak to your car dealership or check around on the internet for valuable information about your vehicles risk levels. This information will give you a better understanding about why your rates are higher than some even with a clean driving record and solid insurance history.
Vehicles that are listed as being more likely to be stolen can receive high rates as many cars are never recovered and the insurance company would have to reimburse you the cars value. You can help lower the risk and your rates with installing anti theft devices such as alarm systems or even a GPS tracking system.
The color of the car can determine your policy rate but not by much. Yes, a white car may not be seen and hit more frequently than a bright blue car but you can purchase underinsured or uninsured motorist protection and help lower your rates. Since the fact that your car is more likely to be hit only means that someone else will be responsible for the bill you only have to ensure that you have the added coverage to make up any difference that their insurance policy will not cover. This is a relief to the insurance companies and will offer you a break on the rates with purchasing this protection.
You should know what your vehicles incident rate is for accidents, theft and even being totaled in minor accidents. This information could save you money of you know the methods to outweigh the risks with protection in your policy. You might consider purchasing a vehicle that offers a very low incidence rate when the time comes to go car shopping, the added savings in the policy can make it worth owning a minivan instead of a white corvette.
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za, a leading South African car insurance portal. For more information visit: http://www.carinsurancesa.co.za
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