1. More accident prone drivers: IF drivers met accident more frequently, the insurance company charges a high premium for the car insurance. The answer is simple that the chances of getting accident are more frequent and the compensation also may be frequent. So the insurance company charge high premium.
Why the cost of insurance varies?
2.Lack of safety devises: If the car is without safety devises such as safety belt, gear block, theft alarm system etc. the insurance cost may be cheaper. The simple logic is that the chances and density of accident may be less and the chances of car theft also very less and there is no need to give more claim. So the insurance company charges less from such parties for the insurance.
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3. Not taking tobacco or smoking: In case of life insurance the insurance company charges less premium for non smokers. This is with the prediction of more heath problem for smokers than non smokers. So the company charges more premiums from smokers.
4. Age factor of the insured: The life span of an old man is lesser than younger one. So the insurance company charges lesser premium from youngsters for the same policy with same amount of sum assured.
5. Some person does not like to take insurance and spend money: To attract such people insurance company may charge fewer premiums. This is also a reason to vary the insurance premium.
Whatever may be the reason or cost, we must take insurance cover to protect ourselves, our dear and near ones and our assets from emergencies and causalities. It will protect your health, wealth and life.