n, we will introduce the average car insurance guideline for people in their 20s to 60s and how to find out how much your own car insurance will cost.
When people reach their 30s, the number of people who buy their own homes increases, and money is required in various situations, so the cost aspect is very important.
If you have purchased a car, but are wondering which voluntary insurance you should buy, or if you want to know how much voluntary insurance will cost each month, please refer to it.
Auto insurance quotes cannot be guaranteed
First of all, I want to know the market price of the same generation as soon as possible! It may be a lot of people who say.
However, the cost of car insurance varies considerably depending on the individual’s circumstances, so it is difficult to make a general statement.
There are two main reasons why you can’t easily assert the market price of car insurance.
- The factors that affect premiums are complex
- Insurance premiums vary depending on whether or not you have vehicle insurance.
These are the two main reasons why insurance premiums vary so much from person to person. First, I will explain each reason in detail.
Complex factors affecting premiums
There are many factors involved in determining insurance premiums, such as age, area of residence, mileage, accident history, and car model.
In addition to this, various factors are intricately intertwined, so it is not uncommon for insurance premiums to be completely different even for people of the same age.
Therefore, even if you divide by age or region, it is difficult to give a rough estimate of insurance premiums.
Even if you know the average premium, it doesn’t necessarily mean that your premium will be close to the average, as costs can vary greatly depending on conditions.
In this way, insurance premiums are calculated from many factors, so it is difficult to calculate a rough estimate even if it is possible to calculate an average. is
Depends on whether you have car insurance or not
Auto insurance offers a variety of coverages. The main compensation contents are divided into “compensation for the other party”, “compensation for yourself and passengers”, “compensation for the vehicle” and “other compensation”.
Of these, there are many automobile insurances that automatically set two of them, “compensation for the other party” and “compensation for yourself and passengers”, when you make a contract.
On the other hand, “vehicle-related compensation” and “other compensation” are often positioned as options, so the cost will vary greatly depending on whether or not these compensations are included.
In other words, the price of insurance will vary greatly depending on how much coverage you want.We recommend that you and your family carefully consider whether you need the option or not.
How to check the approximate amount of car insurance premium (annual contract)
From these points, I learned that the reference market price for car insurance is just a guideline, and that it is necessary to calculate the insurance premium individually in order to know your own insurance premium.
Now, let’s take a closer look at how to find out how much you can actually afford to pay for your insurance.
There are two main ways to calculate your car insurance premium.
- Use the insurance fee calculation tool of each insurance company
- Get an insurance professional for free
By using these tools and free consultations, you can know the estimated amount of money when you take out car insurance. We will introduce each method in detail.
Use the insurance fee calculation tool of each insurance company
The first method is to use the premium calculator provided by each insurance company.
If you look at the official website of automobile insurance, there may be a tool that can calculate the approximate insurance fee just by entering the conditions.
Using these tools, you can get an approximate insurance fee just by filling in the necessary items such as age and accident history. If you have already decided which insurance company you want to join, we recommend using these tools.
However, there is one point of demerit. The point is that one tool can only calculate insurance premiums for one company. As such, it can be a daunting task to compare multiple insurance companies.
Here’s how you can solve it:
Ask a free insurance professional
The next method is to ask an insurance professional for free.
For example, if you are considering moving, you will often ask a real estate agent to search for a room. In the same way, it is recommended to ask an insurance agent to find an insurance company and calculate the market price.
Major insurance agencies include:
- money doctor
- Health Free Consultation.com
- All of Hoken
By consulting with these insurance agents, you will be able to combine quotes for multiple insurance companies instead of just one.
Therefore, it is a recommended method for those who have not yet narrowed down which insurance company they want to contract with.
All three companies offer free consultations . In addition to being able to respond anywhere in the country, it is also a nice point that you can specify the location from here.
You can consult your insurance at a place of your choice, not only at a store, but also at your home or a cafe near your home.
10 things that affect your car insurance premium
Click here to learn more about how car insurance premiums are calculated. Here are the 10 most important things to consider when determining your car insurance rate:
- age
- sex
- region
- Accident history
- number of cars owned
- Annual mileage
- Car make/model
- Driving history (color of driver’s license)
- Presence or absence of car safety device
- purpose of using the car
A comprehensive look at these items will determine the final insurance premium. However, some insurance companies do not necessarily check all items.
First of all, I will introduce in detail what the insurance company sees about these items.
1: age
The first item is age. Age is a very important factor in determining car insurance premiums.
This is because most insurance companies set premiums based on the age of the policyholder.
In general, insurance premiums are higher for those in their teens and twenties who are not used to driving yet. Teens and 20s have a high accident rate, so insurance premiums will be higher in the sense of undertaking that risk.
Once you reach your 30s and 40s, you will become accustomed to driving and the accident rate will decrease nationwide, so insurance premiums tend to be cheaper in most cases. If you are in your 50s, insurance premiums will be cheaper than those in your 30s and 40s, making it the most affordable of all generations.
From here, in the 60’s and 70’s, the driving ability declines with age, and the accident rate nationwide increases, so insurance premiums often become expensive.
In this way, age is an important factor in car insurance rates, and in most cases insurance rates are adjusted according to age.
2: Gender
The second item is gender.
Some people may feel that changing insurance premiums based on gender is outdated. That said, some insurance companies see the point in splitting premiums between men and women.
In fact, nationally, there is data that women are less likely to cause car accidents than men.
The male/female ratio of drivers may have a lot to do with it, but based on this data, insurance companies are enacting policies such as “If the policyholder is a woman, the car insurance fee will be discounted.” There is also
Of course, not all auto insurance policies have separate premiums for men and women. Therefore, if the policyholder is a man, it is likely to be more profitable to choose an insurance company that does not differ between men and women.
On the other hand, if the policyholder is a woman, choosing an insurance company that offers a discount for women will increase the possibility of getting a car insurance at a great price .
In this way, there are cases where there are differences in insurance premiums and discounts between men and women, but not all insurance companies generally offer discounts.
3: Region
The third item is region.
Some people may think that it is unfair that there is a difference in insurance premiums between regions, but there is a clear reason for this, so I will explain it.
Depending on the region, there are big differences in climate throughout the year, driving manners, and prefectural characteristics. Due to such regional differences, the accident rate and the number of fatal accidents by prefecture vary greatly from prefecture to prefecture.
Therefore, insurance premiums will inevitably increase in areas where snow piles up or roads freeze in winter.
Also, compared to other prefectures, where driving etiquette is not very good, the accident rate is higher, so there may be no choice but to increase insurance premiums.
Nonetheless, none of the insurance companies disclose information on such regional differences, how much the premiums will change, or which regions have higher or lower premiums.
4: Accident history
The fourth item is accident history. Detailed information such as whether you have had an accident before and how much fault you had in that accident will greatly affect the subsequent insurance premiums.
Basically, if you have had an accident, it is likely that you will have another accident in the future, which often leads to higher insurance premiums.
However, there are some insurance companies that calculate premiums based on the nature of the accident and the number of years that have passed since the accident. If you have a history of being in an accident, be sure to let your insurance company know.
If you hide your accident history and make a contract, it will be a ” disclosure obligation violation ” and you may be held responsible, so please do not hide it.
5: Number of cars owned
The fifth is the number of cars owned. If you want to purchase more than one car, some insurance companies have introduced a discount system for the second and subsequent cars.
These discounts are ” Second car discount ” and ” Second car discount”. are often called
Also, discounts for the second and subsequent cars may be OK even if the car you already own and has auto insurance has a contract with another company.
Also, if the car insurance grade for the vehicle you already own is above a certain level, you may be able to start with a higher grade for your second vehicle.
The higher the grade, the lower the insurance premium, so if you are thinking about purchasing a second or subsequent vehicle, you can use these discounts to make your insurance premium even more affordable.
6: Annual mileage (km)
The sixth is the annual mileage. Mileage has a big impact on your chances of getting into an accident, so the lower your mileage, the cheaper your insurance will be .
However, be aware that some insurance companies do not include mileage in the calculation of insurance premiums. In addition, the mileage is basically calculated based on the distance traveled in the previous year.
If you usually only use your car for short distance commuting, shopping, picking up and dropping off family members, etc., you can often get a better deal with an insurance company that calculates insurance premiums by taking into account the distance traveled.
On the other hand, if you often drive long distances or like to drive, there is a high possibility that you can get a cheaper contract with an insurance company that does not take into account the mileage.
7: Vehicle make/model
The seventh is the make and model of the car. Cars are categorized into classes based on their make and model.
The higher the rate class number, the higher the risk of an accident, etc., so the higher the risk vehicle, the higher the insurance premium.
The rate class is calculated based on the probability of accidents caused by people riding in the same vehicle or the same type of car as you.
Therefore, even if you have never had an accident, if many other people with the same car make and model have an accident, the rate class will rise and the insurance premium will increase. .
There is also a page where you can search for vehicle rate classes on the Internet, so if you are interested, we recommend checking it out before purchasing a vehicle.
8: Driving history (license color)
The eighth is the color of your driving history and license. Driving history is basically judged based on the color of the driver’s license.
The color of the license is green for new drivers (valid for 3 years), blue for first-time drivers, regular drivers, and violators (valid for 3 years), and gold for paid drivers (valid for 3 years). 5 years for those under 70 years old, 4 years for those 71 years old, and 3 years for those over 72 years old).
If it’s green, you’ve just got your license, so there’s a certain amount of risk of causing an accident.
Also, in the case of blue, it is not possible to distinguish whether the driver is a normal driver or a violator just by the color of the license. The gold license is proof that you have had no accidents or violations in the past 5 years from the time you renewed your license, so you will be more trusted by the insurance company.
Many insurance companies offer a “gold license discount” because it proves that the accident rate is low or that there have been no accidents.
In this way, if you can prove that there are few accidents and violations, insurance premiums may be cheaper.
9: Presence or absence of automobile safety devices
The ninth is the presence or absence of automobile safety devices. There are various types of car safety devices, so let’s check them out.
Seatbelts and airbags are included in all vehicles, so they do not affect insurance rates. Automobile safety devices related to insurance rates are devices that are not included in all vehicles.
For example, ABS (anti-lock braking system) that saves the tires from locking completely, skid prevention device, rear camera, etc.
It depends on the insurance company, but if the company has a car safety device, it is more likely that you will not be involved in an accident even in the unlikely event of an accident.
That’s why some insurance companies offer discounts on auto insurance.
10: Purpose of use (commuting, attending school, daily life)
The tenth item is the intended use of the vehicle. The purpose of using a car varies depending on the person, such as using it for commuting to work or school every day, or using it only for shopping. Insurance premiums may be calculated based on such purpose and frequency of use.
Even if you commute to work or school, your risk will change significantly depending on whether the distance is 5 minutes or 30 minutes by car. In addition, the risk changes depending on whether the company always comes to work five days a week or only two days a week by teleworking.
Therefore, it can be said that how often and where they go is a big part of the calculation of the accident rate.
There are insurance companies that will calculate the insurance premium for you based on the risk of an accident.
