Car Insurance Premium Evaluation Scenario
Determining car insurance premiums involves analyzing various factors tied to both the vehicle and the driver. A combination of these factors, such as the driver's age, driving record, and the type of vehicle, will significantly influence the final premium. By analyzing this data, insurance companies can determine a fair premium that covers potential risks while providing value to their clients.
What We Will Do:
Collecting Driver and Vehicle Information
Capture essential details about the driver and the vehicle:
- Driver's Details: Name, age, gender, driving experience, driving record (number of accidents or traffic violations in the past 5 years), and location.
- Vehicle Details: Make, model, year, mileage (less then 200), purpose (personal or commercial use), and safety features (anti-lock brakes, airbags, etc.).
Ensure all the provided information is validated for completeness and accuracy.
Age and Driving Record Verification
Data Gathering: Fetch the driver's age and driving record.
Validation Process: Check if the driver's age is a numerical value between 18 and 100. Validate the driving record to be within a range of 0 to 10 incidents in the past 5 years.
Age Group Risk Category Young (18-25) High Risk Adults (26-60) Moderate Risk Seniors (61-100) Low Risk Incidents in 5 Years Risk Category Zone 0 to 2 Low Risk Green 3 to 6 Moderate Risk Yellow 7 to 10 High Risk Red
Vehicle Risk Analysis:
Data Gathering: Collect information about the vehicle's make, model, age, and safety features.
Calculation Process: Older vehicles or those without modern safety features might have a higher risk of injury in an accident, leading to higher medical costs.
Vehicle Age Risk Category Brand New(0 to 5 years) Low Risk Slightly Aged(6 to 10 years) Moderate Risk Aged (11+ years) High Risk
Insurance Premium Calculation:
The insurance premium is primarily determined by combining the risk categories from the driver's age, driving record, and the vehicle risk analysis. Here's a sample decision table:
| Age Risk | Driving Record Risk | Vehicle Risk | Monthly Premium |
|---|---|---|---|
| High | High | High | $300 |
| High | High | Moderate | $280 |
| High | Moderate | Low | $250 |
| Moderate | Low | Low | $200 |
| Low | Low | Low | $150 |
Communicating the Premium Quote: Building the Flow
Once the data is processed, the system will provide a premium quote for the client. This ensures clarity and transparency, allowing clients to understand how their risk factors influence their insurance costs.