A type of insurance to cover you should you breakdown in your car or vehicle is called breakdown cover. To establish your yearly cost it has a much simpler and less calculation factor unlike other insurance policies. For example take car breakdown cover. A minimum set of questions will be asked in order to calculate any year premium all of which will make a difference to how much you will pay.
Examples of questions you’ll be asked are: car size, address, any previous accidents, any finds for speeding, car value, number of claims before. To ascertain the risk factor even in home content insurance will ask specific questions like your post code and size of your house to give you an insurance quote. When you compare this to how your breakdown cover payments are, you find a much simpler equation. What type of car you drive, how old you are or how old your car is won’t matter in most cases. It doesn’t matter what your postcode is or even how many claims you have a year. The way it was offered by the motoring organization for over 100 years now have been kept by those companies who offer car breakdown cover and that is payment by the type of breakdown cover required rather than personal circumstances.
Making a comparison of how different types of insurance are calculated in different ways, you can’t wondering what would happen if all car insurance or home contents insurance was calculated in this same way. Cheaper or more expensive premium for everyone? If the same questions were asked for a breakdown cover, what would happen?