Parking or Garage locations and effect on Premium in insurance

29.04.2021
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Parking –

Parking is the primary parking location for the vehicle. It is the main parking area where vehicles are parked when not in use. Usually, it’s the house address or where the car is parked for a maximum number of hours.
For example –
It can be home or it can be office parking.

Garaging Location-

Garaging locations are the locations where vehicles are parked but occasionally or less frequently or in some cases an equal number of hours.
For example –
Apart from home parking, If someone used to park their vehicle at other locations too. Let say, the primary location is the home address. But one has their farmhouse and they visit every weekend there. And in the daytime, they park their vehicle in office parking. Then office parking and farmhouse locations are considered to be the garaging location

Effect of location on the premium amount

The effects of the locations are based on the security level of parking and the time period for which the vehicle is parked.

RISKPREMIUM (Risk is directly proportional to premium) which means if risk increases the premium increases and vice-versa is also true.

For example, the primary house address has no dedicated parking so the vehicle used to park on the street. So there is a high risk of stealing or breakage. But at the same time if society is under camera surveillance and all-time dedicated watchmen which leads to less risk.

And let’s say that vehicle is parked in the office at night. Since security is quite less at night time, it increases the risk factor.

Hence considering all these risks, the premium varies. For vehicles with less risk, carriers offer less premium, and vehicles with high-risk carriers offer high premium.

In this way, parking and garaging locations have a great impact on the premium value.

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