COST OF CAR INSURANCE

Cost of Car Insurance

Cost of Car Insurance

Introduction

Statement of the Problem

The study is related to the cost of the car insurance which is an important phenomenon for the insurance companies. The cost of car insurance depends on various factors but it is important for the insurance companies to identify the most crucial and essential factors that affect the cost of the car insurance.

Research Question

Does the cost of car insurance is based on factors like model, engine, horse power and the acceleration ?

Hypothesis

H 1o : There is a relationship between the cost of car insurance and model of the car.

H 1A : There is no relationship between the cost of car insurance and model of the car.

H 2o : There is a relationship between the cost of car insurance and engine of the car.

H 2A : There is no relationship between the cost of car insurance and engine of the car.

H 3o : There is a relationship between the cost of car insurance and horse power of car.

H 3A : There is no relationship between the cost of car insurance and horse power of car.

H 4o : There is a relationship between the cost of car insurance and acceleration of the car.

H 4A : There is no relationship between the cost of car insurance and acceleration of the car.

Variables

The variables that are use in this study are;

Cost of car insurance = car insurance

Model = Model of the car

Engine = Engine of the car

Horse Power = Horse power of the car

Acceleration = Acceleration of the car

Literature Review

The most important factors that affect the cost of car insurance are the model, engine, horse power and the acceleration of the car. The amount of the cost of car insurance for the car depends on many factors. First and foremost, it is of course on car. Drive a car that is rated among the insurers with high claims frequency and high repair costs, the insurance is unfortunately a bit expensive. This classification is called the insurer "type classes". Another important factor is the model and the engine. Another vital and essential factor is that it depends on where to leave the car. Rural areas are almost always cheaper than big cities. Also, the personal driving skills have an impact on the price of insurance (Davies, 2007). The insurers put the damage to freedom of classes (or no - claims discounts) on. The longer the car owner are already driving without damage, the higher the damage bonus category and the cheaper the insurance. In the best case, car owner only pay 25 % of the basic premium. It has in recent years, often times "crashed" but can also be 240 % of the basic premium to be paid.

Another factor that the price of insurance is significantly influenced the group of people who use the car but car owner still. Is it only the spouse or the children take the car? As the driving skills of other users will be classified? Especially the ...