How a Car Comprehensive Insurance Policy Price is Calculated in Jordan?
Mar 4, 2022 by AmwalCom
A comprehensive car insurance policy that you purchase has many affecting factors that contribute to its price.
The factors are not only related to your car and how much it costs. They also rely on aspects related to your driving records. Here are some of the most common factors impacting the price of a car insurance policy:
the value of your car is not the only factor affecting the insurance policy price, but it is a major one. The basic premium that the company calculates, in order to calculate the final policy value, relies mainly on the car value and is usually between 2.5-4.5% of the car value.
For example, if a car insurance policy is 2.5% of a car's value and your car is valued at 15,000 JOD then your basic insurance premium will be 375 JOD (15000 * 2.5%). In addition, insurance companies will utilize other factors to optimize the premium value.
Generally speaking, when the car value rises, this percentage is lowered.
your car's features impact the insurance policy price. If your car has excellent safety features, that could help lower the cost. On the other side, if it lacks basic safety features, the insurance company will consider it riskier and thus might raise the policy premium.
The age of your car is an important factor in determining insurance price, most insurance companies in Jordan will have a maximum car age for eligibility to buy comprehensive insurance (usually this age is about 10 years; meaning that if your car is 11 years old; companies will probably not insure it with comprehensive insurance).
Type of Fuel
The type of fuel a car uses can also be taken into consideration. For some companies the percentage on which insurance companies calculate the basic premium will vary depending on vehicle fuel type (Hybrid & electric will usually have a higher percentage).
A sports car can be considered more prone to accidents and reckless driving habits, leading to the rise of its insurance policy price. To insure a sports car, you will probably need special approval from the insurance company.
Your Driving Record
If you drive safely and your driving record proves it, your policy price will be reduced compared to another individual with a record full of violations or accidents.
If you don't have a driving record, the insurance company will probably raise the price of the insurance, as they don't know how you drive, and because you are a new driver. They can also optimize the price based on age, as younger drivers can be more reckless.
As we mentioned previously, the value of your basic premium for comprehensive car insurance depends on the value of the vehicle in the market at the time of insurance. Still, the final value of the premium is subject to the additional coverages that you choose to include in your policy, and here we mention the most important ones:
** Roadside assistance: It is added free of charge at most insurance companies and includes assistance in cases of running out of fuel, towing the car, repairing punctures in the tires, and other services in cases of breakdown on the road
** Agency repair: If your car is less than 5 years old, then you can choose to repair your car in its agency in case of a qualifying event, but this comes at a price, on average, the cost of the policy can rise between 100 - 200 JDs in the case of adding this service
** Natural disaster coverage: If your vehicle is damaged due to natural disasters, this add-on guarantees that the vehicle will be repaired at the insurance company's expense. The price of this feature is between 50 - 100 JDs but make sure to ask your insurer about any exceptions to this policy
Of course, there are many coverages that can be added to comprehensive car insurance, and each has its own price. We advise you to ask the insurance provider about these coverages and their cost before signing the contract