Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your Auto Insurance Risk Selection shopping experience:

1. Compare - without doubt the biggest advantage that the Auto Insurance Risk Selection offers shoppers today is the ability to compare thousands of Auto Insurance Risk Selection at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.

2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about

3. Testimonials - don't know anybody that has bought a Auto Insurance Risk Selection? Wrong! If the Auto Insurance Risk Selection is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.

4. Questions - Got a question about Auto Insurance Risk Selection then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....

5. Reputation - Never heard of the company selling Auto Insurance Risk Selection? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about Auto Insurance Risk Selection and build up a picture of their reputation for sales, returns, customer service, delivery etc.

6. Returns - still worried that even after all of the above your Auto Insurance Risk Selection wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.

7. Feedback - happy with your Auto Insurance Risk Selection then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.

8. Security - check for the yellow padlock on the Auto Insurance Risk Selection site before you buy, and the s after http:/ /i.e. https:// = a secure site

9. Contact - got a question about Auto Insurance Risk Selection, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.

10. Payment - ready to pay for your Auto Insurance Risk Selection, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.

Auto insurance risk selection is the process by which vehicle insurance determine whether or not to insure an individual and what insurance premium to charge. Depending on the jurisdiction, the insurance premium can be either mandated by the government or determined by the insurance company in accordance to a framework of regulations set by the government. Often, the insurer will have more freedom to set the price on physical damage coverages than on mandatory liability coverages.

When the premium is not mandated by the government, it is usually derived from the calculations of an actuary based on statistical data. The premium can vary depending on many factors that are believed to have an impact on the expected cost of future insurance claim. Those factors can include the car characteristics, the coverage selected (deductible, limit, covered perils), the profile of the driver (Ageing, gender, driving history) and the usage of the car (commute to work or not, predicted annual distance driven).

History Conventional methods Bauer, Alan Rex; Burns, Kurtis Tavis; Esposito, Michael Vincent; Huber, David Charles JR.; O'Malley, Patrick Lawrence; "Monitoring system for determining and communicating a cost of insurance", January 2004 for determining costs of automobile insurance involve gathering relevant historical data from a personal interview with, or a written application completed by, the applicant for the insurance and by referencing the applicant's public motor vehicle driving record that is maintained by a governmental agency, such as a Bureau of Motor Vehicles. Such data results in a classification of the applicant to a broad actuarial class for which insurance rates are assigned based upon the empirical experience of the insurer. Many factors are deemed relevant to such classification in a particular actuarial class or risk level, such as age, sex, marital status, location of residence and driving record.

The current system of insurance creates groupings of vehicles and drivers (actuarial classes) based on the following types of classifications.



The classifications, such as age, are further broken into actuarial classes, such as 21 to 24 year olds, to develop a unique vehicle insurance cost based on the specific combination of attributes for a particular risk. For example, the following information would produce a unique vehicle insurance cost:



A change to any of this information might result in a different insurance premium being charged if the change resulted in a different actuarial class or risk level for that variable. For instance, a change in the drivers' age from 38 to 39 may not result in a different actuarial class because 38 and 39 year old people may be in the same actuarial class. However, a change in driver age from 38 to 45 may result in a different premium because the records of the insurer indicate a difference in risk associated with those ages and, therefore, the age difference results in a change in actuarial class or assigned risk level.

Current insurance rating systems also provide discounts and surcharges for some types of use of the vehicle, equipment on the vehicle and type of driver. Common surcharges and discounts include:



Telematic systems Conventional rating systems are primarily based on past realized losses and the past record of other drivers with similar characteristics. More recently, telematic systems have been introduced whereby the actual driving performance of a given driver is monitored and communicated directly to the insurance company. The insurance company then assigns the driver to a risk class based on the monitored driving behavior. An individual, therefore, can be put into different risk classes from month to month depending upon how they drive. For example, a driver who drives long distance at high speed in one month might be placed into a high risk class for that month and pay a large premium. If the same driver drives for short distances at low speed the next month, however, then he or she might be placed into a lower risk class and charged a lower premium.

Norwich Union is currently offering a type of telematic auto insurance in the United Kingdom called PAYD. This system employs a combination global positioning system (GPS) and cell phone in a car to monitor driving performance and communicate risk factors to the insurance company. Drivers are offered a discount if they exhibit safe driving. Trials conducted by Norwich Union in 2005 have found that young drivers (18 to 23 year olds) signing up for telematic auto insurance have had a 20% lower accident rate than average. UK: Norwich Union launches innovative "Pay As You Drive"™ insurance with prices from 1p per mile, Norwich Union press release, 05 October 2006

In the United States, Progressive Corporation is offering a form of telematic auto insurance to residents of Minnesota called TripSenseTM. The TripSense system consists of a black box that the driver plugs into their car's On-Board Diagnostics port. The black box monitors the mileage driven, speed, time of day and other parameters, but not the car's location. The user then checks the black box once a month on their home computer. The home computer tells them if they qualify for a discount. If they do, they can download the information to the insurance company and get the discount. If they don't they do not have to download the information.

Other insurance companies are offering telematic auto insurance products in Germany, South Africa, and Japan.

Patented risk selection systems New risk selection methods may be patentable to a greater or lesser degree depending upon the patent laws of various countries. These patents are generally described as business method patents. The United States is fairly liberal in granting business method patents. Europe is fairly conservative.

Different forms of telematic auto insurance, for example, were independently invented and patented Nowotarski, Mark, "Progressive Builds a Fortress of Patent Protection", Insurance IP Bulletin, October 15, 2004by a major U.S. auto insurance company, Progressive Corporation and a Spanish independent inventor, Salvador Minguijon Perez . The Progressive patents cover the use of a cell phone and GPS to track movements of a car. The Perez patent covers monitoring the car's engine control computer to determine distance driven, speed, time of day, braking force, etc. Ironically, Progressive is developing the Perez technology in the US and Norwich Union is developing the Progressive technology for Europe under a license from Progressive. Progressive does not have to get a license to the Perez patent since it was never filed in the US.

References

Auto insurance risk selection is the process by which vehicle insurance determine whether or not to insure an individual and what insurance premium to charge. Depending on the jurisdiction, the insurance premium can be either mandated by the government or determined by the insurance company in accordance to a framework of regulations set by the government. Often, the insurer will have more freedom to set the price on physical damage coverages than on mandatory liability coverages.

When the premium is not mandated by the government, it is usually derived from the calculations of an actuary based on statistical data. The premium can vary depending on many factors that are believed to have an impact on the expected cost of future insurance claim. Those factors can include the car characteristics, the coverage selected (deductible, limit, covered perils), the profile of the driver (Ageing, gender, driving history) and the usage of the car (commute to work or not, predicted annual distance driven).

History Conventional methods Bauer, Alan Rex; Burns, Kurtis Tavis; Esposito, Michael Vincent; Huber, David Charles JR.; O'Malley, Patrick Lawrence; "Monitoring system for determining and communicating a cost of insurance", January 2004 for determining costs of automobile insurance involve gathering relevant historical data from a personal interview with, or a written application completed by, the applicant for the insurance and by referencing the applicant's public motor vehicle driving record that is maintained by a governmental agency, such as a Bureau of Motor Vehicles. Such data results in a classification of the applicant to a broad actuarial class for which insurance rates are assigned based upon the empirical experience of the insurer. Many factors are deemed relevant to such classification in a particular actuarial class or risk level, such as age, sex, marital status, location of residence and driving record.

The current system of insurance creates groupings of vehicles and drivers (actuarial classes) based on the following types of classifications.



The classifications, such as age, are further broken into actuarial classes, such as 21 to 24 year olds, to develop a unique vehicle insurance cost based on the specific combination of attributes for a particular risk. For example, the following information would produce a unique vehicle insurance cost:



A change to any of this information might result in a different insurance premium being charged if the change resulted in a different actuarial class or risk level for that variable. For instance, a change in the drivers' age from 38 to 39 may not result in a different actuarial class because 38 and 39 year old people may be in the same actuarial class. However, a change in driver age from 38 to 45 may result in a different premium because the records of the insurer indicate a difference in risk associated with those ages and, therefore, the age difference results in a change in actuarial class or assigned risk level.

Current insurance rating systems also provide discounts and surcharges for some types of use of the vehicle, equipment on the vehicle and type of driver. Common surcharges and discounts include:



Telematic systems Conventional rating systems are primarily based on past realized losses and the past record of other drivers with similar characteristics. More recently, telematic systems have been introduced whereby the actual driving performance of a given driver is monitored and communicated directly to the insurance company. The insurance company then assigns the driver to a risk class based on the monitored driving behavior. An individual, therefore, can be put into different risk classes from month to month depending upon how they drive. For example, a driver who drives long distance at high speed in one month might be placed into a high risk class for that month and pay a large premium. If the same driver drives for short distances at low speed the next month, however, then he or she might be placed into a lower risk class and charged a lower premium.

Norwich Union is currently offering a type of telematic auto insurance in the United Kingdom called PAYD. This system employs a combination global positioning system (GPS) and cell phone in a car to monitor driving performance and communicate risk factors to the insurance company. Drivers are offered a discount if they exhibit safe driving. Trials conducted by Norwich Union in 2005 have found that young drivers (18 to 23 year olds) signing up for telematic auto insurance have had a 20% lower accident rate than average. UK: Norwich Union launches innovative "Pay As You Drive"™ insurance with prices from 1p per mile, Norwich Union press release, 05 October 2006

In the United States, Progressive Corporation is offering a form of telematic auto insurance to residents of Minnesota called TripSenseTM. The TripSense system consists of a black box that the driver plugs into their car's On-Board Diagnostics port. The black box monitors the mileage driven, speed, time of day and other parameters, but not the car's location. The user then checks the black box once a month on their home computer. The home computer tells them if they qualify for a discount. If they do, they can download the information to the insurance company and get the discount. If they don't they do not have to download the information.

Other insurance companies are offering telematic auto insurance products in Germany, South Africa, and Japan.

Patented risk selection systems New risk selection methods may be patentable to a greater or lesser degree depending upon the patent laws of various countries. These patents are generally described as business method patents. The United States is fairly liberal in granting business method patents. Europe is fairly conservative.

Different forms of telematic auto insurance, for example, were independently invented and patented Nowotarski, Mark, "Progressive Builds a Fortress of Patent Protection", Insurance IP Bulletin, October 15, 2004by a major U.S. auto insurance company, Progressive Corporation and a Spanish independent inventor, Salvador Minguijon Perez . The Progressive patents cover the use of a cell phone and GPS to track movements of a car. The Perez patent covers monitoring the car's engine control computer to determine distance driven, speed, time of day, braking force, etc. Ironically, Progressive is developing the Perez technology in the US and Norwich Union is developing the Progressive technology for Europe under a license from Progressive. Progressive does not have to get a license to the Perez patent since it was never filed in the US.

References



 

Auto Insurance Risk Selection



 
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