No one can foresee when accidents could happen nor where could it take place. When this happens, policyholders are left out with no choice but to go to the company and file for claims just to make it through the horrible accident. Nonetheless, not all claims are always approved. And soon enough, there will be factors that will be checked and bear an effect on the premium you pay. Claims, in its basic sense, have three major attributes that have implications towards determining premium rates. These are: insurance fraud, ISO symbols, and driving record.
ISO symbols are projective measurements. These are utilized by insurance providers in checking their policyholders if they are indeed involved in an accident or another incident similar to it. These are parts of the entire computing system and procedures of managing risks for the car insurance providers. The numbers that will be results of these transmutations will then determine the total cost of all repairs and such that the company will carry. The computation is the total of repair costs canvasses, the total costs of the parts to be used in repairs, and such.
Of course when the ISO symbols are high, the premiums are high as well. Some companies utilize claims history as well.
Some drivers tend to take the issue of driving records too lightly. Some drivers fail to see the seriousness of it. However, car insurance companies perceive the issue of driving history as a very serious matter. This serves as the sign for insurance providers determining the risk factor of the driver. If the driver has a lot of traffic violations in his record, then the driver has high risk and therefore charged a higher premium.
Even if the records are already withstood the test of time, insurance providers also prioritizes the timeliness of the way the records are kept. Of course the records that are more recent are prioritized higher than the older ones. It bears greater effect than those old records.
Some policyholders are even forced to go through the whole process of the system because of the high amounts car insurance premium rates require. However, this is impossible due to the security measures existing such as fraud detection that is enabled to secure the insurance providing company.
In car insurance fraud, there are three types. These are fake helpers, adding damage, and staged rear-end car accidents. These three are methods of some hideous policyholders in attempt to squeeze more money from the insurance company despite the illegality of such acts.
Measuring the effects of ISO symbols, driving records, and insurance fraud in precision to claims is definitely impossible. This is because these records are kept confidential and access to it is denied unless it is someone from the company. However, these attributes are mainly affected by the frequency of claims.