It is inevitable and unpredictable when and where accidents and other car related incidents will happen. During these times, policy holders are left with no other choice but to file for claims in the aim of being financially compensated. However, claims even if they are approved or not have many implications on the insurance, financial and credit records of policy holders which may affect his or her premium rates in the future. Claims in its simplest sense imply three major attributes of premium rate determination. These attributes are ISO symbols, driving record and insurance fraud.
ISO symbols are the projective measurements used by car insurance companies in determining their financial burden if its policy holder is involved in an accident or other incident. These symbols are parts of the whole computing systems and risk management procedures of policy providing companies. The numerical transmutations of these symbols will correspond to the total cost that the company is burden with by insuring a policy holder and his or her car. This computation includes costing canvasses on repairs costs, parts costs, and services costs.
The higher the ISO symbols are the higher the premium rates of the policy holders. Most policy providing companies use claim history in projecting for its other policy holders.
Driving records at sometimes are taken too lightly by drivers. But in the eyes of insurance companies driving records tell the story and the risks that come along with it in insuring a policy shopper. Anyone who does not have accident or claim records in their driving records will automatically pay fewer premiums as compared to those who have such records.
Even if these records is composed of long years of driving experience, policy providing companies still consider the timeliness of their record keeping. Record accounts which are recently documented bear greater rating as compared to the older ones.
The high payments of car insurance premium rates even force some policy holders to find ways of going around the whole system. This is impossible because of the checks and balances mechanisms such as fraud detection, which are functioning full swing to aid policy providing companies.
There are three major types of insurance fraud; these are staged rear-end car accidents, adding damage, fake helpers. These three are done in the attempts of trying to get more from the insurer, even through invalid and tampered reasons.
Measuring specifically how claim affect ISO symbols, insurance fraud and driving records is impossible to do since their specific weights are kept within confidential records. But nonetheless, these major premium attributes are affected by the numbers and frequency of claims.