Page 173 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

better risk than male, thus entitling them to discounts
on the standard premium.

Motor Insurance play a major role in road traffic
regulations and motor vehicle manufacturing. In the
USA most motor vehicle manufactures seek the star
rating of insurers for the vehicles as it results in lower
premium rates for their customers.

Traffic offences, non-adherence to regulations on
road safety are immediately penalized resulting even
in loss of insurance cover and driving licenses.

The rating pattern for private cars in the USA involves
the use of variables. The following note are an outline
of the rating pattern, with insurers making their own
variations: Driver's age, gender and marital status.
Young driver are generally under 25.

Although some insurers have separate classes for each
age e.g. 17 to 20 and 21 to 24. Most insurers have a
separate class for drivers over 65.

Sex of driver also has a bearing since female drives
below a certain age are safer drivers and attract lower
rates. Marital driver attract lower rates than unmarried
drivers.

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