The accuracy of car insurance quotes based on risk assessment

The accuracy of car insurance quotes based on risk assessment - The future of risk assessment is intended to become so advanced that drivers will receive quotes based on their actual driving behaviour than just a basic profiling form. At present, insurance prices are on the rise and after a new EU ruling – young women look to be the real victims of inflating quotes in upcoming years. So, just how accurate are the current detached quoting systems?

TV advertising seems to be dominated by meerkats and a certain moustachioed opera singer these days and the commercials drive thousands of motorists to comparison sites when seeking a new quote. Punch in a few pages of personal data and in seconds a list of quotes from multiple insurers is displayed onscreen. But despite the convenience of such sites, the quotes provided can sometimes appear unfairly expensive – which leads applicants to question the accuracy of their assessed risk.

Address and job role information is requested and, with this, the insurers can put drivers into certain groups. This is often seen as a generalisation as not all salespeople for example, drive the same way or even cover the same number of miles per day. Certain jobs are granted cheaper car insurance quotes purely on the assumption the job role proves the safety of a driver – an airline pilot tops the list.

The vehicle’s registration number is inputted and its auto history is then investigated. Insurance category groups also come into play here and understandably so – more powerful cars are deemed more of a risk. The auto history examination however, can be viewed as irrelevant. For example, a previously damaged tracking system, knocked out by a clumsy previous owner, may be fully repaired (off the books) and is now potentially in the hands of an airline pilot driver – making the auto history an insignificant area of risk to analyse but at the moment, it does still play a part in the overall quote.

A ‘no claims’ bonus is exactly what the name implies – no claims have been made by this applicant in a set number of driving years but that isn’t to say they haven’t had an accident and paid for damages using their own cash. Therefore, the ‘no claims’ certificate can be seen as exactly that – a gift voucher to receiving discounted insurance rather than a form of evidence for careful driving.

There are other factors which help determine demographic profiles and quotes to match (age, gender, marital status, etc). The wealth of data examined is considered enough to quote people accurately and there are plenty of driving statistics which support that accuracy.

Still, as quotes continue to rise so do the number of complaints. A new ruling from the EU could see quotes for young women increase further by 11%. Young men under 25 are calling for more niche policies to help them afford the commute to work.

There is hope on the distant horizon as with onboard telematics software and cooperation from the DVLA, insurers will eventually be able to base quotes purely on how a driver handles the vehicle. Until then, specialist broker packages from the likes of Swinton car insurance can be the answer to finding a more accurate quote – especially for youngsters.