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Old 17th December 2013, 19:21   #1
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Smile Your parking slot may decide your vehicle's insurance premium

Until now the Insurance premium for any vehicle was dependant on the geography, model, variant of the vehicle one owned in addition to the registration, driver's age & engine capacity. Going forward the Insurers will factor the person's driving history, colour of the vehicle and also the parking slot the person would park his car. If the Insurers have their way then this is going to be reality very soon. The following link has the details.

http://timesofindia.indiatimes.com/b...w/27493341.cms

Couple of things mentioned in the article are contradictory:
1) Driver cause the accidents and not the vehicle.
2) Black coloured vehicles are more prone to accidents whereas white coloured one are prone to theft.

Going forward the Insurance will more of a customized product.
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Old 17th December 2013, 23:14   #2
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Default Re: Your parking slot may decide your vehicle's insurance premium

I think these are good measures! Basically if the insurance company is able to assess the risk and charge appropriately, that would help the good drivers as their premium will be lower while the people who anyway would make a lot of claims would be made to pay more.

In fact, I heard that in some countries there are other innovative measures like a smart device installed on the car, which measures the driving habits (very aggressive to mild driving) and based on that sends the feed back to the insurance company. This information will be used to better compute the premium.

So, while we currently already have the No-Claim-Bonus as a rudimentary mechanism for not making claims, these newer measures are, in my opinion, a more structured way of differentiating between drivers.
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Old 17th December 2013, 23:25   #3
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Default Re: Your parking slot may decide your vehicle's insurance premium

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Originally Posted by deep_bang View Post
I think these are good measures! Basically if the insurance company is able to assess the risk and charge appropriately, that would help the good drivers as their premium will be lower while the people who anyway would make a lot of claims would be made to pay more.

In fact, I heard that in some countries there are other innovative measures like a smart device installed on the car, which measures the driving habits (very aggressive to mild driving) and based on that sends the feed back to the insurance company. This information will be used to better compute the premium.

So, while we currently already have the No-Claim-Bonus as a rudimentary mechanism for not making claims, these newer measures are, in my opinion, a more structured way of differentiating between drivers.
Progressive does this in USA. You attach a device to your OBDII port for 30 days and the premium is tailor keeping your driving style, commute route, parking area etc as factors

If my driving history & gated covered parking gets rewarded in the form of lower insurance premium - nothing like it!

Last edited by blackasta : 17th December 2013 at 23:27.
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Old 18th December 2013, 08:14   #4
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Smile Re: Your parking slot may decide your vehicle's insurance premium

Hopefully the lower premium on Insurance will lure some sane driving on the Indian streets. If the new Insurance customization is introduced the most hit section will be the vehicles which are parked on the streets. I am sure this section will be a sizeable one and will force the authorities to rethink on the same which will defeat the purpose of the customization.

The new measures also talks about increased NCB % in case of claim free driving.
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Old 18th December 2013, 09:26   #5
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Default Re: Your parking slot may decide your vehicle's insurance premium

This is a good move that not just the car value, but other parameters will decide the premium. Driver demographics should also play a role in this too. Some kind of trend analysis on age group, marital status, dependents, lifestyle, usage (km driven/month) should also impact the premium.

If good percentage of world wide insurance companies do this, I don't understand why Indian companies are lacking this. Maybe some obscure regulation exists that requires only car value/engine capacity to be determining factor.
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Old 18th December 2013, 16:37   #6
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Default Re: Your parking slot may decide your vehicle's insurance premium

These things and parameters are being considered by insurance companies from quite some time now and articles pertaining to the same have been appearing in certain section of media since last two years. I have my doubts that such a thing will ever work here. Parking spaces at home are different from parking slots in offices and markets. How will they arrive at the risk levels at these slots will be interesting to watch?
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Old 18th December 2013, 18:04   #7
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Default Re: Your parking slot may decide your vehicle's insurance premium

I assume the rules will be followed only by private players like ICICI / Bajaj / IFFCO etc.

We know how much competitive the govt insurance agencies are !

Lets see when this items are implemented in India.
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Old 19th December 2013, 06:30   #8
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Default Re: Your parking slot may decide your vehicle's insurance premium

The color of the car deciding the insurance premium is sheer stupidity, in my opinion.

As for whether the parking slot is covered or not, this might actually bite most of us in the rear. Most apartment complexes (at least from what I have observed in Pune, Gurgaon and Bangalore) have very limited covered parking. Most people end up parking out in the open; this is even more pronounced as most families have multiple cars. Another thing, how often do you end up claiming insurance while the car is parked. Minimal.

Looks like we are slowly moving to the US model; what's next, Insurance is tied to the driver as opposed to the vehicle? Eventually, to weed out abuse by a few, the majority will bear a higher premium.

Last edited by libranof1987 : 19th December 2013 at 06:32.
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Old 19th December 2013, 06:52   #9
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Here I am learning something new about repercussions of choosing black or white cars; in fact last I had heard of red being the color for accidents and being spotted by cops more often. Wow that's like three colors gone from the choice of colors for your car.

Hope IRDA jumps in and tames insurance companies for implementing stupid checks.
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Old 19th December 2013, 10:11   #10
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Default Re: Your parking slot may decide your vehicle's insurance premium

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Originally Posted by libranof1987 View Post
Looks like we are slowly moving to the US model; what's next, Insurance is tied to the driver as opposed to the vehicle? Eventually, to weed out abuse by a few, the majority will bear a higher premium.
Insurance should depend (atleast 50%) on the driver and his/her history. Rest 50% on the vehicle.

A good driver with a safe vehicle is the safest thing on road - diametrically opposite is a bad driver with a jalopy.
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Old 19th December 2013, 16:29   #11
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Default Re: Your parking slot may decide your vehicle's insurance premium

Quote:
Originally Posted by ghodlur View Post
Going forward the Insurance will more of a customized product.
Sounds good on the face of it. However, i just hope this doesn't become a marketing trick where they advertise the low rates, but then customize UP to a higher rate because you live in a city, drive >5 times a week, don't have covered parking, etc etc.

Quote:
Originally Posted by deep_bang View Post
...In fact, I heard that in some countries there are other innovative measures ...
In the USA, Geicko gave me a couple of hundred $$s off as part of the 'Good student discount'. It was pretty much my only motivation to have a GPA (Grade Point Average) higher than 3.3.

Quote:
Originally Posted by libranof1987 View Post
The color of the car deciding the insurance premium is sheer stupidity, in my opinion.
All based on statistics. However, unfortunately statistics are a generalization, so there will be people who suffer because of these stupider ones... like the poor 24 year old trying to buy a red 2-door car in the USA, regardless of if its only 80 bhp.

cya
R

Last edited by Rehaan : 20th December 2013 at 15:51.
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Old 19th December 2013, 20:17   #12
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Default Re: Your parking slot may decide your vehicle's insurance premium

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Originally Posted by Rehaan View Post
Sounds good on the face of it. However, i just hope this doesn't become a marketing trick where they advertise the low rates, but then customize UP to a higher rate because you live in a city, drive >5 times a week, don't have covered parking, etc etc.
R
Well. Interesting point. The question comes to what do the insurance companies gain by investing in these ideas.
I am sure no company will invest unless they have a good return. My hope is that competition will force companies to take these measures rather,than companies doing this to with a motive to make quick money.
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Old 19th December 2013, 20:32   #13
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Default Re: Your parking slot may decide your vehicle's insurance premium

Good idea, but only for the insurance companies. Instead, they should focus on whether there is a security system installed, the education of the owner/driver and most importantly the safety ratings of the car. Hope the colour thing applies only to accidents at night.

The article only mentions open, closed or roadside parking. Hope it remains the same.

OT:
Last December, the week I swapped places of my M800 (under a tree) with the A-Star, a mango fell on the A-Star breaking its windshield. Luckily, we had to pay just ~ Rs. 1000 since insurance covered the rest.

M800 is white and A-Star is black

Last edited by amolbh : 19th December 2013 at 20:33.
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Old 20th December 2013, 01:49   #14
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Default Re: Your parking slot may decide your vehicle's insurance premium

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Originally Posted by blackasta View Post
Insurance should depend (atleast 50%) on the driver and his/her history. Rest 50% on the vehicle.

A good driver with a safe vehicle is the safest thing on road - diametrically opposite is a bad driver with a jalopy.

I support that as well. In the US, your driving history determines the premium. I'm all for that.

But there's a big pitfall- only the person who has Insurance for the car is covered; so, there are restrictions on who can drive the car. This would be a big problem in India where anyone in a family/friends could end up driving a particular car. It works fine in the US because every person has a dedicated car for themselves; not so much in India.

My skeptimism is about this aspect not the driving record bit.
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Old 20th December 2013, 08:07   #15
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Default Re: Your parking slot may decide your vehicle's insurance premium

In the Netherlands the post code has an influence on your premium. Some insurers offer discounts if you have a garage for your car.

On some classic car or expensive cars they might make it mandatory to have a garage, other wise you won't even be able to find anybody that want to insure you.

Engine size is a big factor too.

And lastly, not unimportant: sex. Yes, in plenty countries women get better insurance rates than men. Statistically they have fewer accidents and the ones they have tend to be less costly, so they pay less premium.

Jeroen
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