In the article, we will talk about how driver experience is considered when applying for an insurance policy. A similar calculation for car insurance is quite simple. Moreover, it is the driving experience that has a great influence on the cost of the insurance policy. It is worth noting that the cost of hull insurance depends on driving experience to a lesser extent. To a greater extent, the price of a voluntary car insurance is affected by the characteristics of the vehicle and the list of included services.
How is driving experience with CASCO insurance considered? This is done very simply - the period from the receipt of the driver’s rights to the moment of issuing the policy is taken into account, and it does not matter what the actual driving experience of the drivers is.
Calculation of driving experience for OSAGO has more nuances. It is no secret that the main task of insurance organizations is to maximize profits, therefore, it is impossible to be sure that the representative of the insurer calculated the driving experience correctly. Therefore, it is important to know the calculation rules.
The influence of driving experience on the price of an insurance policy
By law, each car owner is required to insure their civil risks. Moreover, the legislation regulates the basic tariffs for OSAGO, however, insurance companies have the right to change the cost, taking into account a number of factors. The insurers pay most attention to driving experience, since accidents most often occur through the fault of drivers who do not have enough experience.
Some insurance companies are speculating heavily on this fact, deliberately underestimating the figures to obtain additional margin. Therefore, it is necessary to know the nuances of how seniority is considered in insurance. About it further.
Age Accounting
When determining the cost of car insurance, insurers take into account numerous factors, but special attention is paid to the age of the driver and his practical driving experience. Usually, if an experienced driver draws up insurance, the insurer does not take his age into account. An exception are older drivers who do not have driving experience. In this case, age is an occasion to raise the auto insurance rate.
Driving experience
If we talk about driving experience, then it is one of the main factors, insurance organizations take it into account without fail. Motorists with extensive driving experience should not be worried about a possible overpayment. But inexperienced quite often cheated. Driving experience is considered from the moment the rights are granted. However, the actual driving experience also matters. Another important factor is the bonus malus. This is a coefficient reflecting the number of accidents made by the driver. The lower it is, the less accidents occurred due to the fault of the driver.
Influence of PIC on the cost of the policy
Let's look at what is considered a driving experience for insurance? It is worth noting that insurers do not take into account the age of a motorist only if he has enough driving experience. If we are talking about young drivers who do not have enough experience, then the situation is the opposite. To make the most correct calculations and reduce financial risks, insurers will have to correctly determine the coefficient that takes into account the driver’s age, his driving experience (FAC). This is the so-called coefficient of age and length of service.
PIC can have 4 values:
- 1.8 - this coefficient is assigned to a driver whose age is less than 23 years, and practical driving experience does not exceed 3 years.
- 1.7 - this coefficient is used in the process of calculating the cost of insurance for drivers whose age is more than 23 years, but practical experience is less than 3 years.
- 1.6 - this coefficient is used in calculating the price of the policy for drivers who are less than 22 years old but have a driving experience of more than 3 years.
- 1 - this coefficient is assigned to drivers whose age is more than 23 years, while driving experience exceeds 3 years.
The logical question will be about the rules for calculating the coefficient for a driver whose age is much more than 23 years, and his driving experience exceeds tens of years. The indicator will not undergo any changes. The maximum discount can be received by a driver who has ten years of experience, and one who will have three full years. However, experience shows that the price of policies can vary significantly, with the difference sometimes reaching 80%. What is considered a driving experience, it is important to know when calculating the cost of an insurance policy. It is also worth clarifying this question with different insurance companies in order to find the most suitable one.
Trouble-free experience, its impact on the cost of insurance
The process of calculating the cost of car insurance also takes into account the experience of trouble-free driving (BSV). This indicator is important, but not critical. In this regard, it is used along with other factors. However, the cost of the insurance policy often depends on the driver’s discipline. For example, if the driver has a ten-year trouble-free experience, and the value of the bonus-malus coefficient is minimal, he has the right to expect to receive a significant discount when making insurance, and vice versa. For example, the same rate can be assigned to a driver who committed 2 accidents in 5 years, and to someone who drives only 1-2 years, but during this time did not provoke a single accident.
Rules for calculating PIC when applying for insurance
To understand how driving experience is considered by law, let us explain that the age of a motorist in calculating the cost of compulsory insurance is taken in cases where he has minimal experience. The start of a driving experience is the date a motorist receives a driver’s license, or assigns a new category.
In accordance with the existing rules, deprivation of rights and interruptions in driving do not affect the calculation of driving experience. That is, the starting point of experience is always the issue of rights. This fact is also taken into account when replacing a driver’s license.
Driving experience is considered quite simple to understand, you just need to look at your rights. For the correct calculation of the coefficient, you should know one thing. It is directly dependent on a change in the driver's category. For example, the driver has ten years of experience driving a vehicle (with disqualifications and interruptions), while a couple of years ago he changed the category. This means that he has a total driving experience of 10 years, and in calculating the cost of insurance he will apply a coefficient equal to one. But if insurance is opened on a vehicle corresponding to a recently opened category, then the PIC will be applied, which is 1.7.
The impact of KBM on the cost of motor third party liability insurance. Features
Continuing to consider how driving experience for compulsory motor liability insurance is considered by categories of coefficients, it is important to note that there is an indicator used in the process of determining the cost of insurance - CBM (bonus malus). It is worth explaining that it is this indicator that often acts as the reason for the start of litigation. Very often, insurance companies accidentally (but often intentionally) make mistakes in the calculation of the CBM. And for any driver who first applies to the insurance company, a mump equal to one and class 3 is assigned. If the driver does not provoke an accident during the year, the mump is reduced. This means that the cost of insurance is also reduced. That is, the driver’s insurance costs directly depend on the correct calculation of the KBM.
KBM, unlike the Armed Forces, upon interruption of the insurance period for a period of one year, will again become equal to one, and the driver will be assigned class 3.
This explains why drivers who have long obtained the rights, but do not have insurance experience, or they have experience that is repeatedly interrupted, lose out. In fact, the actual driving experience is not practical. In this case, the risks of the insurer are greatly increased, respectively, the cost of the policy is changing.
KBM Check
Sometimes car owners are faced with situations when insurers accidentally or intentionally make a mistake in the process of calculating the CBM. In this case, each owner can calculate the KBM independently and check it on the official PCA portal. If discrepancies are found, you must contact the insurance company. If the insurer does not agree with the arguments, communication with him should continue in court.
How is driving experience considered correct?
The information studied allows us to conclude that those drivers whose age is more than 23 years old have an advantage in calculating the cost of car insurance. Moreover, their driving experience exceeds 3 years. Despite the fact that the countdown of the driving experience begins from the moment of obtaining the certificate, it is calculated separately for each category. Moreover, deprivation of rights and breaks in driving have no effect on this indicator. In the process of calculating the MSC, not only participation in the accident is taken into account, but also the guilt in it. If the driver has not had an insurance policy for more than a year, he will automatically be deprived of all discounts.