A man, a computer scientist, 60, is not crazy about driving. He’s been driving for 30 years without an accident… which, he believes, will allow him to get premium rates on his car insurance. But against all odds, his insurance company, Foyer, is claiming 25% higher than last year’s premium on his car. “Why this increase?”asks the father of the family via our orange alert button.
Guy’s Premium in 2021
600 euros instead of 480
Five years ago, Jay decided to insure his car – a Hyundai Tucson and a Citroen Berlingo – via Groupago, a group buying site for car, motorcycle and home insurance in Belgium. “They provided me with good conditions and so I went to them.”, He says. Last year, Jay paid €480 for his Hyundai Tucson insurance. This year, his insurance company asked him for 600 euros.
Confused, Jay called Solidas Assurances SPRL, the company that created and runs Groupago. This insurance comparator had no explanations to offer as to what drove Foyer’s assertions to such an increase. Solidas Assurance simply sent him a new offer from another insurance company, AG. “It was the same price I was offered, even more expensive”He says.
Guy’s Premium in 2022
His insurance company justifies the increase by moving him
So Jay went straight to Foyer Assurances, a Luxembourg-based company. They told me ‘Oh, but sir,’ I have moved. I say “yes” and then? “Then you pay more because you live in another area.”We explained to him. In fact, Gaye moved from Lobes to Fontaine-l-Evêque, two towns in the province of Hainaut separated by 10 km, the second with 18,000 inhabitants, or 3 times more than the first.
Due to the heavy traffic in the cities, the claims are more numerous there
Calculating the car premium depends on several factors, including the place of residence, and this has an impact on the price. Explains Asoralia spokesperson Nefert Degermenci. A city exposes itself to more accident risk than a village where traffic is less important. Due to the density of urban traffic, there are more claims; Which poses an additional risk.”
Statistical techniques are developed by insurance companies to ensure the profitability of the goods sold
Each insurance company offers rates that may vary according to their own retail criteria. How are these criteria determined? Sophie Civilio, Product Manager at Foyer Assurance, explains the tariff split: “We perform statistical analyzes by identifying characteristics of people with few or many claims. The more we prefer people with few claims, the more we will have to increase the rate of people with many claims.”.
Therefore, the retail criteria are based on statistical and actuarial studies. “Thus we find that people who live in certain municipalities are exposed to more or less accidents than those who live in other municipalities, Sophie Civilio continues. This can be explained by the density of traffic, the proximity of large cities, the smoothness of the roads, …; While flying, near major highways (there are already more thefts in neighborhoods near major highways or motorways).”
Several other criteria are taken into account when calculating the price of compulsory vehicle insurance. And Sophie Civilio to Bombshell: “Age of drivers (young people have more claims), previous claims (we find that people who have already had accidents recently are more likely to cause accidents to happen again), vehicle strength (stronger vehicles have more accidents than less powerful ones), etc. .” The legislator requires insurers to be transparent about the criteria used in underwriting and pricing contracts. Thus we find the list of criteria on the Assurance Foyers website.
Discount of 25 euros, little consolation canceled
Jay finds it difficult to absorb the argument for a change of address made by his insurance company. Definitely Lopez “More countryside”He admits, but he also lived there on a big bridge. “25% increase, I still find it shocking”, trust. Finally, Solidas Assurances contacted Foyer’s guarantees and obtained a reduction of €25 for its clients. A proposal accepted by Jay reluctantly. “It always increases by 100 euros”, he regrets. As for his second car, Jay expects the same price…