Chauffeured Vehicle (VTC) drivers must have adequate insurance to protect their vehicle, their passengers, and themselves. However, the cost of VTC insurance premiums can vary considerably depending on several factors. Understanding these criteria can help you choose the right coverage at a competitive price. In this article, we explore the main criteria that influence the cost of VTC insurance premiums.
1. Driver profile
Driver profile is one of the main factors taken into account by insurance companies when determining the cost of premiums. Here are the key elements of the profile that influence rates:
- Age : Younger drivers (under 25) are often considered riskier and may face higher premiums.
- Driving experience : Drivers with few years of experience or a recent driving license generally pay more.
- Claims History : A history of accidents or claims can increase premiums because it indicates a higher risk.
- Driving history : Traffic violations, such as speeding or drunk driving, can also increase the cost of insurance.
2. Type and use of the vehicle
The type of vehicle used for the VTC activity and its use also influence the cost of insurance premiums:
- Make and model : High-end or luxury vehicles generally cost more to insure due to the high cost of repairs and the risk of theft.
- Age of vehicle : Older vehicles may be cheaper to insure, but it also depends on their condition and reliability.
- Annual mileage : High mileage indicates intensive use of the vehicle, which increases the risk of accidents and, therefore, the cost of insurance.
- Professional use : Using the vehicle for the transport of passengers involves additional risks, justifying higher premiums.
3. Place of exercise
The location where you carry out your VTC activity also has an impact on the cost of insurance:
- Urban vs. Rural Area : Urban areas with heavy traffic and increased risk of accidents may result in higher premiums than rural areas.
- Crime Rate : Areas with a high crime rate, including vehicle theft, can also increase the cost of insurance.
- Weather conditions : Areas subject to extreme weather conditions (snow, storms, floods) may see their premiums increase due to the increased risk of claims.
4. Guarantees and options chosen
The level of coverage chosen by the driver directly influences the cost of premiums:
- Comprehensive vs. Third Party Insurance : Comprehensive insurance provides more comprehensive coverage and therefore costs more than third party insurance.
- Deductible : A high deductible reduces the insurance premium because it increases the share of costs borne by the driver in the event of a claim.
- Legal protection guarantee : This guarantee can increase the cost of the premium, but it offers valuable protection in the event of a dispute.
- Assistance and roadside assistance : Assistance options, such as towing and replacement vehicle, add to the cost of insurance.
5. Insurance history
Your insurance history also plays an important role in determining your premium:
- Bonus-malus : A good bonus-malus coefficient (or reduction-increase system) reduces the cost of insurance. Conversely, a penalty increases the premium.
- Continuity of insurance : Having been continuously insured without interruption can work in your favor and reduce the cost of your new insurance.
6. Choice of insurer
Finally, the choice of insurer can influence the cost of premiums, because each insurance company has its own pricing and risk assessment policy. Here's how to optimize this choice:
- Compare offers : Use online comparators and request several quotes to compare prices and guarantees offered.
- Negotiate : Don't hesitate to negotiate with insurers to obtain discounts or more favorable conditions.
- Consolidate insurance : If you take out several policies (auto, home, health) with the same insurer, you can benefit from attractive discounts.
Conclusion
The cost of VTC insurance premiums is influenced by a multitude of factors, ranging from the driver's profile to the type of vehicle, the place of operation and the guarantees chosen. By understanding these criteria and comparing the available offers, you can find insurance adapted to your needs at a competitive price.
At KT Courtage, we specialize in insurance for VTC drivers and we help you navigate these criteria to find the best possible coverage for your customers. Do not hesitate to contact us to enter into a partnership!