Before buying car insurance it?s important that you understand how the companies work. Customers are investments to insurance companies. Either a customer is a good investment or a bad investment. The reason this affects you is because it will influence your premium that the insurance company quotes you.
There are several different factors that your car insurance company takes into consideration when determining how much of a risk you are. Younger drivers, for example, have higher insurance costs than older drivers. Younger drivers have less experience driving and get into more accidents, so it only makes sense that their insurance will cost more. Studies have shown that young men get into more accidents than young women, so their costs are often even more expensive. After a few years of driving experience without any accidents the rates for these individuals should subside.
Another huge factor that determines if you?re a huge risk is your driving history. You can expect your insurance premiums to increase if you?ve been in an accident recently. They will usually stay this way for a few years. To avoid an increase in premiums you can choose not to report a minor accident to your insurance company.
When you apply for car insurance the agent will ask what type of car you drive. Even this determines the type of rates you can expect. Sports cars will have much higher insurance costs than regular cars because they get into accidents more frequently than other cars and they cost more to repair. Always remember that any add-ons you put on your vehicle won?t be compensated for if they are ruined in an accident. If you are looking for lower rates drive a standard car or truck.
Surprisingly, car insurance agents also calculate your rates by the area you live. Your zip code is given a certain risk assessment, and that will play a factor in how your rates change. If you live in the inner city you rates will be more expensive than if you live in the country. This is because there is more theft and vandalism. Sometimes collage students will register their car insurance with the address of their parent?s home to escape these higher rates.
Good drivers and people who have been with an insurance company for many years can often get good rates. These low risk drives have proven that they drive safely and stay out of accidents, so they are more likely to make money for the insurance company rather than take it away. You can also try taking out several different types of insurance with one company. They will give you lower rates since your overall risk factor is staying the same and they are making more money from you. Companies are always looking for good investments, so make sure you are doing everything you can to be low risk.
There are several different factors that your car insurance company takes into consideration when determining how much of a risk you are. Younger drivers, for example, have higher insurance costs than older drivers. Younger drivers have less experience driving and get into more accidents, so it only makes sense that their insurance will cost more. Studies have shown that young men get into more accidents than young women, so their costs are often even more expensive. After a few years of driving experience without any accidents the rates for these individuals should subside.
Another huge factor that determines if you?re a huge risk is your driving history. You can expect your insurance premiums to increase if you?ve been in an accident recently. They will usually stay this way for a few years. To avoid an increase in premiums you can choose not to report a minor accident to your insurance company.
When you apply for car insurance the agent will ask what type of car you drive. Even this determines the type of rates you can expect. Sports cars will have much higher insurance costs than regular cars because they get into accidents more frequently than other cars and they cost more to repair. Always remember that any add-ons you put on your vehicle won?t be compensated for if they are ruined in an accident. If you are looking for lower rates drive a standard car or truck.
Surprisingly, car insurance agents also calculate your rates by the area you live. Your zip code is given a certain risk assessment, and that will play a factor in how your rates change. If you live in the inner city you rates will be more expensive than if you live in the country. This is because there is more theft and vandalism. Sometimes collage students will register their car insurance with the address of their parent?s home to escape these higher rates.
Good drivers and people who have been with an insurance company for many years can often get good rates. These low risk drives have proven that they drive safely and stay out of accidents, so they are more likely to make money for the insurance company rather than take it away. You can also try taking out several different types of insurance with one company. They will give you lower rates since your overall risk factor is staying the same and they are making more money from you. Companies are always looking for good investments, so make sure you are doing everything you can to be low risk.
About the Author:
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading Car Insurance portal.
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