Vehicle age, Make, Model and Capacity

Vehicle age, make, model and capacity may be one of the most important factors in deciding the value of motor car insurance premium. In terms of vehicle age some underwriters take the consideration that older cars are less attractive to thieves and repair cost may be lower the newer vehicle. Which means premium may be more cheaper for car which is two or three years old compare to new car. This view may be true for some insurer which might be different case for other insurer.

The make and model of a car gives a guideline of the performance,  risk potential and to some extent the market value of the car. For example, a Toyota Altis compare to a Toyota Celica the performance, risk potential and market value of the car greatly defer and thus the difference in premium. Another example would be a BMW compare to a Toyota model as the market value defer so does the factor in affecting the premium.

Lastly the capacity of the car also affect the premium rating as higher the capacity gives an indication that higher the risk thus higher the premium. Hope that this covers the basic understanding of why and how the premium rating on vehicle age, make, model and capacity. Feel free to post any comments and questions. Thank you.

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