Affordable Auto Insurance: Controlling Costs
Although one hears a great deal of complaining when it comes to the cost of covering a vehicle, affordable auto insurance is actually easy to get for those who keep a clean driving record and are smart about what and when they drive. It is true that the term “affordable” is a relative one, but depending on where you live and what type of vehicle you drive, you can obtain basic liability and uninsured driver protection for as little as $30 a month.
The first step however is to understand just how insurers determine car insurance cost.
Tools of the Trade
One of the most lucrative professions for mathematicians these days is not in the sciences or education, but the insurance industry. Actuaries are the ones who determine risk, using a highly complex set of algebraic equations known as an actuarial table. This information is what underwriters use to determine how much someone will ultimately pay for their insurance. It is not prophecy, nor always 100% percent fair – the use of actuarial tables is more like scientific calculations of odds at a Las Vegas casino. Nonetheless, until someone invents a time machine allowing us to literally see into the future, this is the best way to determine risk.
