Statistics and Car insurance

Using Maths To Get A Car Insurance Quote.


Big data and statistics are everywhere it seems. The simpler something appears the more complicated it might actually be. Take for instance your smart device or tablet. We use it to access the internet, buy things and in some cases check for insurance. It makes our lives that little bit easier thanks to its proximity to us. But drilling down further into this simple everyday device and you will actually find that it’s actually more complicated than you give it credit for.

The same could be said about insurance as there is a lot more involved in coming up with a quote than you usually see. What you get when you run a quick quote and eventually take out your cover is actually a little bit more complicated than you might imagine.

Searching for car insurance involves your insurer using probability and statistics to get you the best quote. As part of the insurance process, an insurer will need to study certain statistics to help them provide you with a premium. This information is usually provided when a person is getting a quote and can include some of the following.

  • Age
  • Vehicle
  • Location
  • Profession
  • Driving experience
  • Penalty Points
  • Annual Mileage

Insurance providers take all of the above information into consideration when quoting you and compare you to others in the same statistical grouping. This could result in you being deemed to pose a higher statistical risk for the insurer as you could be more likely to file a claim. Alternatively you could be part of a grouping who are not deemed a statistical risk and the cost of your premium will reflect this.

The more information an insurer can get about your driving history the better as this enables them to give you a more accurate quote. For instance you may find that when you are beginning to drive that it might be difficult to get, what you deem to be, a competitive quote. This is usually because the insurer can’t call upon your driving statistics. This is why an insurer will ask about your no claims bonus history as this gives them more information about you and your driving history.

Big Data and Insurance

The insurance industry is reliant on data and statistics so the growth of big data is revolutionary. As technology develops, so too does the means in which insurance companies can get more driving information that they can use to calculate risks which is a great thing for the consumer. The availability of more avenues for insurers to get more verified data, via systems like telematics, helps them to work out, with improving accuracy, the probability of you being involved in an incident where you may need to make a claim of some type.

Statistics and probability are also on your side when it comes to getting your car insurance with Chill. As we work with a number of car insurers there is a increased probability that we can get you a competitive quote than if you were to use only one insurer. So if your car insurance is up for renewal, or you are looking for a quote, click on get a quote now to see how much you could save by choosing Chill.