Zero Depreciation or ‘Zero Dep’ car insurance policies seem to ...
SBI General Insurance would price the car insurance premium depending on customer profiles. In simple terms, the pricing would be higher for those drivers perceived to be more risky and less for those perceived otherwise. These are signs of the industry maturing and offering more refined products based on individual profiling.
Currently car insurance premiums depend more on the attributes of the car rather than of their usage. Main factors which influence pricing are age of car, type of car, the cubic capacity of the car, fuel type and place of registration. Only the No Claim Bonus or NCB is in some way linking the preceding years claim history to the current premium charged.
Well all that is going to change with SBI General Insurance pricing in factors like age of driver, parking place of car – open space, covered garage or public place and more specific parameters.
This is the way to go and we would find more and more companies adopting these granular models to improve their car insurance pricing models. Most of these rules would be automated with very little manual intervention required. Better sharing of information between insurance companies and various government departments would also be crucial in the long run.
The flip side is that even if you are a careful driver, but only 21 years of age, the chances are that you will have to pay a higher premium than your next door middle-aged aunty!