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Cure Car Insurance - How To Reduce Premiums
Unlike many other car insurance companies, CURE, an auto insurance non-profit, believes that utilizing outside factors to determine the premiums charged for your auto coverage is an unfair form of income discrimination. Since the company has been formed in response to the first insurance crisis of the 80's, when car insurance companies were unwilling to write automobile insurance because of high statutory costs and low profit margins, the company has consistently advocated against insurers using these types of variables.

The problem with using outside factors to calculate your auto policy premiums is that they are not objective. They are based on how much money the insurer is willing to spend on each claim. They are based on the insurer's perception of risk, which can be subjective, because the insurer does not have the benefit of knowing about the circumstances surrounding each claim that it has made.

This means that some car insurance premiums can be higher than others simply based on the subjective view of the insurer that the risk being presented is likely to lead to a claim. The insurer may believe that you are a high risk or a low risk simply because of your age, gender, or driving record. A carrier may think that a woman is more likely to be involved in car accidents than a man, even though women are statistically less likely to file a claim for an accident than men. An insurer may also feel that young drivers, or those who live in urban areas are more prone to car accidents because they are more likely to be reckless drivers, and this, too, is subjective.

It is important for car insurance companies to charge the same premiums no matter who the driver of the car is. The objective of these premiums is to provide protection against claims that can cost an insurer money. If a claim is filed, and the claim amount is less than the insurer is willing to pay, the insurer must reduce the premiums to meet its liability exposure.

When you look at the objective factors that determine car insurance premiums, you will find that some are completely subjective and cannot be measured objectively. These factors include age, gender, driving history, past claims history, credit score, personal experience and so forth. You can look at these factors individually to see what impact they have on the premiums you pay for your coverage. However, if you look at the totality of a person's driving history, and whether or not they have a history of accidents, you can see which group is more likely to file a claim for your coverage.

Once you make the decision as to whether or not to use factors such as age, gender and driving history to determine the level of insurance that you pay for your policy, the next step is to find out exactly how much the insurer's overall liability exposure will be. Liability is defined as any damages that the insurer pays out as a result of an accident. This includes medical payments, property damage, and personal injury. Each of these categories of damage is taken into consideration in calculating a company's total cost of liability.

In general, the more claims a company files, the lower its total liability will be. Therefore, a company that is relatively new in the automobile insurance business will be able to file fewer claims, since these claims will be smaller and therefore be less expensive.

A company that is established in the auto insurance industry will also pay higher premiums, since they are more likely to file claims, since they will be required to pay out more, especially if their claims are of a high magnitude. While linkedin to an insurer is greater, a company that has a long history in the auto insurance business and has proven that they can meet the requirements for car insurance, will be able to obtain lower insurance premiums, while also being able to claim more from a higher level of risk involved in an accident.
Read More: https://www.linkedin.com/pulse/car-insurance-humble-tx-how-find-best-rates-leah-ball/