There are several considerations that are made while insuring and covering risks. It depends with the company that has been chosen for the cover. Farmers insurance company group is one among other insurance companies in California that are giving the similar services. It has attracted major huge number of the insurers due to their quality in services as well as the level of their consideration in while offering the services . The company has a strategy of defining the level at which they are to collect premium depending with the risks to be covered. Different insurance policies as well have different level of premium payment as well depending with the risks that are covered.
At the same point on the model can be charged differently of the same risk depending with the company. Taking the Farmers insurance company, their consideration and the elements that are considered are different with other companies in the industry. The pricing of the risks is differently depending with the company’s growth and the consent with the owners . The difference may arise with the difference of the lifestyle of individuals as well with their willingness of covering the risks that are identified. The level at which the policy are prone to the identified risks also determines the cost and the premium to be paid. The companies consideration are different hence the policy owner has to choose where they suit.
The other consideration in the difference of the premium payment concerning the same car is brought about by the difference in social class. One of the insurance policies of the Farmers insurance group is covering cars whereby it depends with various determinations. To begin with is the high ranks individuals are especially the politicians are among the individuals give high premiums. The issue of registering the cars and giving them an executive registration has to pay a high level of premium the companies covering the car has to take the high amount to cover the risks that are involved to prevailed car to the public individuals. Arguments are made that a direct attack can be made easily to the car as the identity is publicly revealed to every person thus easily located. This can lead to destruction of the car hence the company has to compensate . The companies also have to consider the cost of the car as well as the situation and lifestyle. This covers social, political and economic advancement of the car holders thus contributing in the premium setting.
The payment of the premium can be influenced by several factors considering the social, culture, and politics. Others are the age, level of income, job group and type in regard to the profession. The age of the car owner, different insurance company has to scrutinize critically the owner making a proper decision on the premium. The young person’s tend to make accidents more likely than the older persons. This may be led by driving under the influence of the alcohols and driving rate nights . The company has to consider how prone the individual to the risks that they are covering are. The rates of the accidents are more likely to happen involving the young persons in comparison to the older individuals. The insurance companies have to consider the record of an individual as well as the number of the time has been involved to the identified risks.
The age does not automatically prove that the young has to pay a high premium. In regard to the company that is insuring the car, has a responsibility to acquire the history of the rider and the owner to determine the cost and the premium. Depending with the insurance company, the younger and good condition of the car the low the premium should be paid. Together with the age, the insurance company has to use the driving license number and in collaboration with the traffic department to identify the conduct of the driver hence having a clear history to set the premium.
The income of an individual has to determine the level of the premium that has to be paid. The more the income hence an individual chooses to pay a premium to high insurance company as a cover . The difference arises from the car that is being insured and the risks that are being insured. The difference of the companies arises in the assessment of the risks as well the lifestyle and social class. This affects the payment of the premium as the wealthy person has to have a high class car. This extends to attract more premium than others for the risks that are similar.
Jobs are used by the insurance companies in deciding the premium to set for the different persons. The executives of high ranks have to drive good cars that are of high class. This cannot be compared to the low level person in the same field. In the payment of the insurance, the company has to find means of separating the two groups. Difference in the payment comes with the security needed as well as the risks that are involved with the rank of the employee. High executive’s individuals have high security and drivers hence the level of risks is minimal. At the same time has high risk of being attacked the insurance has to be high hence. This depends with the insurance company that is providing the policy and cover for the identified risk . The difference of the insurance companies means that the policies are different hence difference in the insurance premium.
Different strategies that are used by the United States insurance companies vary with the company. Different companies cover different risks completely hence majoring with the sector. For instance, the car insurance there is prominent risks that are covered including the accidents. The other strategy employed is the need of the insurer and the person insuring the car . This is extended to the lifestyle and social culture. The purpose of the car has to be analyzed and well defined so that can be insured for a specific risk. Finally, the initial cost of the car is also valued and its history.
In conclusion, the insurance companies have different strategies that they employ and uses while measuring the premium. The aim of the company and its size helps in defining the kind of risks that they can cover. The size of the company has to ensure they have the capacity to settle the genuine claims if they can occur before the maturity of the cover . The California car insurance is a wide and huge organization that can insure cars of different models as well in regard to lifestyle. The services provided to the customers by an insurance company have a clear indication of their capability in meeting the need of covering the risk.
Works Cited
Donnelly, Mary Queen. On your own : a personal budgeting simulation : instructions and source documents booklet. Princeton, N.J.: Recording for the Blind & Dyslexic, 2004.
Marin-Galiano, Marcos. Insurance: an R-Program to Model Insurance Data. New York ; Chichester: Wiley, 2005.
Noe, Raymond Andrew, Raymond A Noe and et al. Human resource management : gaining a competitive advantage. New York : McGraw-Hill Irwin, 2012.
