When you are a VTC driver, taking out suitable insurance is essential to protect your vehicle, your passengers, and yourself. However, the cost of VTC insurance premiums can vary considerably depending on several criteria. Understanding these factors will not only allow you to better manage your budget, but also to choose coverage that perfectly matches your needs. In this article, we explore the main criteria that influence the cost of VTC insurance premiums.
1. Driver Profile
The driver's profile is one of the most determining elements in calculating the insurance premium. Insurers take into account several aspects:
a. The age of the driver
Young drivers (under 25) are often considered riskier by insurers because they generally have less experience on the road. As a result, they often pay higher premiums.
b. Driving experience
The more years of experience you have as a driver, the lower your insurance premium can be. Insurers believe that experienced drivers are less likely to be involved in accidents.
c. Driving history
Driving history is also crucial. A driver with a clean record, without at-fault accidents or major infractions, will benefit from more attractive premiums. Conversely, a driver who has been involved in several accidents or has committed traffic violations will see their premiums increase.
2. Vehicle Type
The type of vehicle you drive also influences the cost of your VTC insurance. Here’s how:
a. The value of the vehicle
High-end or new vehicles cost more to insure due to their high value and higher repair costs. Insurers must provide higher payouts in the event of a claim, which is reflected in the premium amount.
b. The model and brand
Certain makes and models are considered safer or less expensive to repair, which can lower premiums. Conversely, more powerful or rarer vehicles can lead to higher insurance costs.
c. Energy used (thermal vs. electrical)
Electric vehicles, although often more expensive to purchase, can benefit from lower insurance premiums due to their reduced environmental impact and certain incentives offered by insurers.
3. Use of the Vehicle
How you use your VTC vehicle plays an important role in calculating insurance premiums. Here are the elements to consider:
a. Annual mileage
High mileage indicates intensive use of the vehicle, which increases the risk of accidents and breakdowns. Insurers therefore adjust premiums based on the number of kilometers you drive each year.
b. The type of journeys
Travel in urban areas is generally riskier due to traffic density and the increased number of unexpected situations (pedestrians, traffic lights, intersections). If you mainly travel in the city, your premium may be higher than if you mainly drive in rural areas.
c. Passenger transport
As a VTC driver, regularly transporting passengers adds an additional risk, which is taken into account in the calculation of the premium. The more passengers you transport, the higher the risk for the insurer.
4. Coverage and Selected Guarantees
The type of coverage and benefits you choose directly impact the cost of your insurance premium. Here are the common options:
a. Third party vs. comprehensive insurance
Third party insurance is the most basic and cheapest option, covering only damage caused to third parties. On the other hand, comprehensive insurance offers more comprehensive coverage, including damage to your own vehicle, even in the event of liability, but is more expensive.
b. Optional guarantees
Adding optional guarantees, such as legal protection, 0 km breakdown assistance, or driver guarantee, will increase the amount of your premium. However, these guarantees offer additional protection that can be valuable in the event of a claim.
c. The amount of the deductible
The deductible is the amount you have to pay out of pocket in the event of a claim before the insurer takes over. Choosing a higher deductible can lower your premium, but it means you'll have to pay more in the event of an accident.
5. Geographic Area
Where you operate your VTC business also has an impact on the cost of your insurance. Here’s why:
a. Urban vs. rural area
Urban areas, with heavy traffic and a higher accident rate, result in higher premiums. On the other hand, if you operate mainly in rural areas, where the risk is generally lower, your insurance premium may be reduced.
b. Crime rate
Areas with high crime rates, particularly vehicle theft, can result in higher premiums. Insurers take these factors into account when assessing the risk associated with where you park and use your vehicle.
6. Insurance History
Your past relationship with insurers can also influence the cost of your premium:
a. Bonus-Malus
The bonus-malus system is a key factor. If you have accumulated a bonus by not having any at-fault claims in recent years, you will benefit from reductions on your premium. On the other hand, a penalty, due to at-fault accidents, will increase your premium.
b. Continuity of insurance
If you have been insured continuously without interruption, this can work in your favour. Continuity in insurance demonstrates stability and reduces the risk for the insurer, which can result in a more advantageous premium.
Conclusion
The cost of VTC insurance premiums is influenced by a multitude of factors, ranging from the driver's profile to the use of the vehicle and the type of coverage chosen. By understanding these criteria, you can better assess your needs, compare offers, and choose insurance that is suited to your budget and your activity.
At KT VTC&TAXI, we help you navigate these complexities to find the best VTC insurance at a competitive price. Contact us today for personalized advice and a tailor-made quote .