New auto insurance policy in 2016New rules
Since January 1, 2016, nationwide insurance companies will implement a new vehicle insurance rate policy, with premiums going up 25% for 2 times out of insurance, 50% for 3 times, 75% for 4 times, and double the premiums for 5 times!
So why reform auto insurance?
Data show that in the first half of 2014, China Pacific Insurance's motor vehicle insurance business has climbed to 100 percent of the integrated cost rate, which means that its auto insurance business is under pressure to lose money. The comprehensive cost rate of PICC property and casualty insurance was 94.4% in the first half of the year, of which the underwriting profit of the auto insurance business was 3.7%; Ping An General Insurance's comprehensive cost rate was 94.4%. The rest of the insurance company's consolidated car insurance claims rate is perhaps even higher.
The rising prices of auto parts, labor costs, medical costs for personal injuries, and rising channel expenses under fierce competition have caused a significant increase in the cost of each insurer's auto insurance business, and will face the predicament of losses.
The insurance industry believes that one of the major reasons for the increase in the cost of auto insurance business is that the current tariffs are missing the key factor of the risk of car models. The current auto insurance rates of various insurance companies are only related to the number of seats, the age of the car and the purchase price of the new car, and the premiums are the same for the same selling price of the vehicle.
Taking a 200,000 BMW One Series and a 200,000 FAW Volkswagen Metro as examples, the premiums are basically the same. However, due to the difference in the parts ratio (the ratio of the sum of the prices of the parts of a specific model to the sales price of the whole vehicle, with higher coefficients indicating that the more expensive the parts), the BMW's repair costs are obviously higher in the event of an accident.
So the current car insurance charges do not match the level of risk, which is unfair to insurers as well as car owners.
Differences in the new 2016 auto insurance regulations:
①Calculate premiums according to the actual value of the vehicle, different premiums for different models of cars of the same price
Prior to the fee reform, car owners purchased insurance on the basis of the purchase price of a new car to determine the cost of insurance. After the fee change, the vehicle is to determine the actual value of the premium to insure the car damage insurance, the occurrence of a total loss, the vehicle can get the actual loss of compensation. Consumers will also pay less than they did before the change.
After the fee reform, if the same price vehicle is insured, then the different models, the premiums paid are also different. The authoritative assessment of the higher safety factor, easy to repair (parts are cheaper) vehicles, insurance costs will be lower.
2 ② less insurance, good driving habits, the lower the premium
After the fee change the insurance company to give the price of high and low, will not only depend on the owner of the previous year's insurance rate, but also with reference to the owner's driving behavior and driving risk. Simple calculation, no insurance in the previous year, a comprehensive calculation, car insurance rates can enjoy a minimum of 60% discount of the base rate, if two consecutive years without insurance, premiums can be a minimum of 50% discount, if three consecutive years (or more) without insurance, premiums can be a minimum of about 40% discount.
③The new rules expand the scope of insurance responsibility
The insured or the driver's family can be paid under the three liability insurance, compared to the past hit their own family insurance does not pay for the situation, after the fee reform, the scope of its insurance responsibility has become broader. In addition, vehicle damage caused by natural disasters such as typhoons, tropical storms, blizzards, ice storms, sandstorms, hailstorms and other natural disasters have also been added to the liability of car damage insurance, and a number of exemptions have been deleted from all types of insurance.
④Increase the right of "subrogation"
Simply put, when the other party is fully responsible for the insurance accident, if the other party is insufficiently insured or incapable of making compensation, the damaged party can ask its own insurance company to pay first, and then the insurance company will be responsible for recovering the compensation from the other party.
Auto insurance policy new rules: insurance responsibility is wider
This year's reform of the commercial auto insurance terms on the basis of the original significantly expanded the scope of insurance responsibility.
1, the original vehicle did not have a license plate when the accident is not within the scope of insurance liability, the new regulations can also be compensated.
In order to meet the demand of insurance consumers for "immediate effect" of the insurance policy, the provisions of this article deleted the "next day at zero hours" of the insurance policy to follow the principle of freedom of contract, allowing the policyholder to "zero hours" or "start insurance". The policy allows the policyholder to choose between "zero hour" or "immediate effect".
2, the family car hit their own family, can be compensated
The new provisions of the insurance accident caused by third-party damage to the insured motor vehicle, the insured to the third party claims, the insurer should actively assist, the insured can also be directly to the insurance company to claim. The new clause expands the scope of insurance responsibility, in the commercial auto insurance terms of liability exemption, the three insurance "insured, the driver's family members of personal injury and death" included in the scope of coverage, that is to say, driving a car hit the family members are also included in the scope of coverage.
3, accidentally caused by the car people injured, can be compensated
Hail, typhoons, blizzards and other natural disasters and the goods contained in the car, the car damage caused by the accidental impact of the people can also be compensated.
4, "high insurance and low compensation" problem has been adjusted
The original high insurance and low compensation, that is, regardless of the number of years of the insured vehicle, the insurance should be in accordance with the purchase price of a new car to pay premiums, while in the payout is only a proportion of the claims, but after the reform, the determination of premiums and the purchase price of a new car out of touch.
1, before the change:
For example, a car 100,000 dollars, insured 100,000, after two years of driving is still insured 100,000, but after an accident, the insurance company is in accordance with the depreciated price of the compensation. I interviewed the industry Mr. Ma: now the new regulations in accordance with the actual value of the insurance, if the total loss of the insurance company in accordance with the insured amount of compensation. After the reform of the commercial auto insurance policy will be a new depreciated vehicle price.
2, after the change:
For example, a new car a car 100,000, insured 100,000, two years later in accordance with the depreciated price of insurance, no longer 100,000.
Auto insurance policy new rules two: rates and risk linked to the frequency of insurance effectively reduced
Auto insurance reform before: before the implementation of the premium fluctuation mechanism, small accidents have been high, or multi-vehicle minor scratches, has been letting the many insurance companies a deep headache, and so there is now a reform to increase the "premium fluctuation mechanism "That is, the previous year, the number of claims, the next year's premiums will float, and even by the insurance company refused to insure. For example: insurance once no discount, two on the payment of 25%, three times is 50%, four times 75%, more than five times is twice.
Car insurance formula change
Original premium formula:
Premium = (car price * rate + base premium) * adjustment factor
New premium formula:
Premium = [base pure risk premium / (1 - surcharge rate)] * rate adjustment factor
Prior to the reform, the new car purchase price is the same, the premium is the same. After the reform, the purchase price of new cars of different models is the same, but because of the difference in risk, the premium is not the same.
Six impacts on the aftermarket
1, auto insurance prices are closely related to driving behavior
After the rateization of auto insurance, the factor of auto insurance pricing will be realized from the "car" to the "people" of the change. Car insurance once the real rate marketization, good car owners premiums will be reduced, because this part of the car owners do not have insurance or insurance is very small; and often out of the car owners, the future premiums may be very expensive, every time out of the insurance premiums may rise sharply.
2, the same price models car insurance prices are completely different
After the reform of car insurance rates, consumers in the car, in addition to focusing on the model price itself, the most concerned about the car may be the "base premium" is how much. This "base premium" comes from the standard based on the replacement price of auto parts for this car. If you choose to buy a car with a high "base premium", no matter how good your driving habits are from the "human" factor in the future, you will have to be a rich man who suffers from the "car" factor. The "car" factor is the high cost of driving.
3, the real condition of the used car is no longer hidden
China's auto insurance rate market reform, the realization of the "car" to the "people" pricing, will fundamentally promote China's second-hand car trading. Because of China's auto insurance rate market reform, we need to collect, analyze and apply the "human" factors from the driver, then, the future of the used car based on the driver's factors, we also fully know. This "know" is the owner's driving behavior, his every mileage, every action will be data.
4, the current auto repair system will face an impact
If not expected, there will soon be a large number of social maintenance organizations, hundreds of millions of private car owners out of the new choice of auto repair. Perhaps in the near future, you have an insurance report, the loss adjuster will not be like the previous to recommend you to the 4S store to send repair, but to go to some of the insurance company certified social repair enterprises.
5, car networking grafted car insurance to become a terminal application
China's auto insurance rate market reform, we used to need the "car" factor, we now need more "human" factor. Where does the human factor come in? Data collection based on Telematics hardware is one of the key sources of the "human" factor.
6, according to the mileage according to the weather to buy car insurance has become possible
China's auto insurance rate market reform, there will also be an "innovation clause" that supports and encourages the conditions of the insurance company, based on the free data, to formulate their own innovation clause, *** with the composition of the commercial terms of auto insurance. This means that not only the rate of play liberalized, the future of play that a car how to insure, may be different insurance companies will also play different tricks. Different insurance companies, their market development positioning is different, some insurance companies need is the scale of premiums, some insurance companies need is the quality of customers, some insurance companies need is the comprehensive cost rate can be controlled.
New auto insurance policy out of the three major points of attention to buy a car:
After the car insurance rate reform, for those who want to buy a car, the following three points must be noted:
1, buy a car: not only look at the price of the car, but also look at the ratio of the zero to the whole
"The car insurance rate reform program, the motor vehicle's ratio of the zero to the whole will also be taken into account up." Property insurance sources revealed that the higher the ratio of motor vehicles, the higher the car insurance rates may be, the higher the final price of car insurance.
What is a vehicle's LTV ratio? It's the ratio of parts to the overall sales price. Simply put, it is the ratio of the sum of the prices of all the spare parts for that vehicle model on the market to the sales price of a new car. China Insurance Association, China Automobile Repair Association jointly released data show that some motor vehicles, the whole car for the total price of parts, you can buy more than 10 of the same new car. Some vehicle parts prices are abnormally high, not only let the owner of the high cost of maintenance, but also let the insurance company in the car insurance claims feel unfair. "This time, linking the motor vehicle spare parts ratio to car insurance rates can work backwards to affect the sales of vehicles with high spare parts ratios."
A warm reminder to buy a car in the future do not just look at the bare price of the vehicle, but should also check the vehicle's zero-to-full ratio, otherwise you may spend more on premiums every year.
2, choose a car: not only choose the brand, but also look at the rate table
"Previously buy a car may feel that which series of the car security is good, which Department of security is worse, in the future, we will have a better reference in the choice." Property and casualty insurance sources revealed that the auto insurance rate reform program uses the national auto insurance industry claims data over the years, each model will have a rate table, that is to say, the same brand of vehicles, different models of insurance rates will be different.
Models that have had higher claims in the past may have higher car insurance rates when people insure a new car, or when they renew their policy, than models with lower rates.
Warmly remind the future of buying a car do not buy which brand of which model based on feelings alone, but to check the insurance company's rate table for the model in advance. In the same price of a variety of models, be sure to choose a relatively low rate of models.
3. Driving: don't drive recklessly, premiums or 50% off
"The best way to get lower car insurance premiums is to drive safely." Property and casualty insurance sources said that in the future, do not drive capriciously, for three consecutive years or even five years without insurance vehicles, property and casualty insurance companies to give car insurance discounts may be greater, to get a 50% discount or even lower rates are possible, and vice versa, car insurance rates are likely to be substantially higher.
Future traffic violations may also be linked to car insurance rates. For example: running a red light, parking illegally, etc., may affect the renewal price.
Warm reminder to drive in the future, do not be arbitrary, a strict adherence to traffic rules, the second to always do safe driving, car insurance rates will be reformed may affect you to buy a car.
Car insurance reform is expected to January 1, 2016 in the national implementation, March 19 before the expiration of car insurance can be renewed before January 1! Please insure your vehicle as soon as possible based on your vehicle's insurance to avoid overpaying for premiums after January 1!
Extended reading: insurance how to buy, which is good, hand to teach you to avoid the insurance of these "pits"