Outcome 2 section 3

 Blog 2.3.1

 Why do we need insurance?

Insurance plans are beneficial to anyone looking to protect their family, assets/property and themselves from financial risks or losses. Insurance plans will help you pay for medical emergencies, hospitalization, or medical care required in the future.

What kinds of insurance are there?

• 1.Life insurance
• 2.Health insurance

• 3.Property insurance
• 4.Vehicle insurance

• 5.Business insurance

• 6.Credit or dept insurance

What are the options in a policy?

When people buy insurance, they put money into a premium item with many others. Some of the item's money helps people who suffer an unexpected hardship due to loss from a home fire, vehicle collision or business interruption in that year. You never know what's going to happen in the future, so always have insurance to get you covered.

Where do we go to get insurance? 

There are several ways to get insurance. You can buy a policy directly from a health insurance company, find a health insurance agent, or just use a National Association of health website. It can also be obtained through a coverage plan at your job.

How much does it cost?

In 2022, the average cost of life insurance per month in Canada was about $13 for $100,000, however that number would change depending on a number of factors.

Assignment 1:

Pick the 10 most important pieces of information that impacts your car insurance purchase.

1. Age:

Insurance companies view teen drivers as very risky and expensive clients to insure. There is data that show that teen drivers drive more recklessly and get into more accidents than do drivers in any other age group. 

2. Driving history:

Car insurance companies see a driver's past as an accurate predictor of their future performance. A history of tickets or violations will inflate the cost of current and future insurance premiums.

3. Gender:

Another popular risk factor is gender, it primarily impacts rates for young drivers. On average, a male teen driver pays $754 more per year in auto insurance premiums than does a female teen driver. This is because car insurance companies see young male drivers as more likely to take risks than females.

4. Vehicle:

Insurance rates will differ based on the type of car you own. If a vehicle costs more to replace, the insurance company will charge you more each month to cover these potential costs. 

5. Insurance company 

The largest factor in determining auto insurance costs is the insurance company you decide to go with. Rates vary remarkably from company to company.

6. Credit score:

Having a good credit score can come in handy when trying to lower your auto premium. Some insurance companies notice that customers with good credit ratings tend to have a lower collision risk and use it to help inform their premiums.

7. Mileage:

Driving fewer kilometers annually can lower your auto insurance premium. You may be rewarded for spending less time on the road, proving that you’re a low risk of insurance. 

 8. Vehicle model  

The vehicle you drive helps inform your insurance provider of your risk as a policyholder. Certain safety features may lower your claim risk while also increasing the cost to repair due to their advanced technology. 

9. Postal code:

Companies might also pay out a higher number of claims in a certain city or town depending on the crime rates in that area.