Article
| Exposing the Car Insurance Quote Mystery |
| By: Jay B Stockman |
|
|
|
Congratulations, you have just purchased the car of your dreams; you worked a great deal, now it is time to insure it. Car insurance is mandatory in all states, and must be maintained throughout ownership. Insurance quotes can vary from company to company, and there are a few factors that you can control, and other factors you cannot. A full understanding of how insurance quotes are arrived at, will give you the best rate, and maximum coverage.
Factors that cannot be controlled include the age of the driver. Common sense tells us that a new driver would be more of a risk to an insurance company, than an established driver. Therefore a driver in their early 20's would pay a higher premium than a driver in their 40's.
|
Further, elderly drivers have poor reaction time, and similarly would pay more of a premium. The ideal driving age would be between 35 to 55 years; anyone younger, or older would pay more.
Gender is another uncontrolled factor that insurance quotes are based on. Statistically, insurance companies see females as safer drivers than males. As a result, female drivers pay less than their male counterparts.
There are factors, which we can control, namely the amount of traffic tickets and accidents. A ticket is a violation of law that could potentially result in an accident. Insurance companies frown on this, and will penalize the driver with higher rates. Similarly, accidents could indicate a pattern of behavior; as such the driver is penalized with higher rates.
Where you live is another controlling factor that effects insurance quotes. Living in a rural area, puts the driver at much less risk of accident or theft as compared to living in a city. As a result, city drivers will pay a larger premium than rural drivers with very few exceptions.
Want to drive a Porsche 911 Carrera? It will cost you. The more your car is worth, the higher your insurance quote will be. The logic should be obvious.
Car insurance companies are now looking at your credit worthiness. Do you have excessive, outstanding credit, or no credit at all? If so, you are a risk in the eyes of the insurance companies, and will get socked with higher insurance quotes. Keeping your credit in check will show the insurance companies you are responsible, both financially, and on the road. As a result, you will pay lower premiums.
Your occupation can put you at a higher risk. Jobs that require many hours of driving, or driving in hazardous conditions, or places will put your quote at a higher rate. Less driving, and exposure to high-risk opportunities, will result in lower premiums. Additionally you want to keep your annual mileage down to a minimum. The more miles you drive, the greater the risk of accident.
Vehicle theft is a risk factor that can easily be minimized. Most companies will give you a discount for having better security for your vehicle. An alarm, or another approved anti-theft device will usually result in some discount. Some companies may insist on having such devices installed on more expensive and desirable cars before they even consider offering you a price.
Some companies look favorably on drivers who have taken a defensive driver’s course. They see this as a commitment to safer driving, thereby lowering the risk of accident, resulting in lower premiums.
Keep in mind these are just general guidelines, and the difference in price between various companies can be significant. What one company may consider a high-risk factor another company may not view as so important. The bottom line, keep your credit in check, be careful on the road and choose a car that fits your budgets.
About the Author
Jay B Stockman is a contributing editor for Car Insurance Quotes Resource Visit http://www.car-insurance-usa.com/ for more information. |
|
Technorati Tags:
Insurance quotes, car insurance, insurance premiums, insurance, auto insurance, auto insurance quote
Add to: | Technorati | Digg | del.icio.us | Yahoo | BlinkList | Spurl | reddit | Furl |
|
| What is Car Insurance? |
| By: John Mussi |
Car insurance is compulsory in the UK. You are required by law to have a policy to cover your liability to other road users.
The Road Traffic Act requires all motorists to be insured against their liability for injuries to others (including passengers) and for damage to other people's property resulting from use of a vehicle on a road or other public place. It is an offence to drive your car or allow others to drive it without insurance.
Owning and driving a car means taking on many risks to yourself and others. When a traffic accident happens, damage, injuries, loss or all of these factors may be inflicted upon you and others. Damage and loss of your property may also occur. Fire, theft, vandalism and natural disasters are other possible risks.
Car Insurance protects motorists and drivers against liability in the event of accidents they may cause. It can also provide cover for the motorist's own vehicle.
Car insurance is what safeguards you against loss due to traffic accidents, thefts or other reasons. Taking out car insurance is very important as insurance is what secures you from economic loss or damages. In case you do not have car insurance and you are involved in an accident, in spite of who is at fault, you will be paying the compensation concerned with damages. Car insurance is designed to protect yourself and others against these risks.
Many different types of cover are available, ranging from third party cover which protects individuals against liability should they injure a third party or cause damage to a third party's property, but does not provide any cover for the individual's own vehicle or property, through to comprehensive cover, which can offer protection for accidental damage, theft, fire damage as well as liability towards third parties. The minimum legal requirement for car insurance to drive in the UK is Third Party Only,
Car insurance is a contract between you and the insurer, specifying each party's rights and obligations. Essentially the car insurance company promises to provide specific coverage for you in return for your payment of the car insurance premium.
It is vital to know what your car insurance policy covers. It could be a complete and comprehensive policy that covers you for all risks that might be surrounding your car. The basic requirement is that in the event of an accident, you are covered for the compensation that you may have to pay for injury to other people and their vehicle. This is an amount that could run into several thousands which will be covered in the car insurance policy.
There are two main types of car insurance policies available in the UK :
Third Party
Third party insurance covers the insured when driving on private property as well as on public roads. This policy offers protection against legal liabilities as well as covering third party claims.
Comprehensive
Comprehensive insurance cover is the most popular form of cover, the most important addition being accidental damage cover, where policyholders can get their own vehicle repaired in case of damage. For people who want to be covered against as many risks as possible, then comprehensive policies is the solution.
You should read your car insurance policy carefully to ensure it gives you the level of cover you are seeking. There should be no small print or difficult language in modern insurance policy documents. If you are unsure about what the policy does or does not cover then just ask your insurer or insurance adviser to explain.
You may freely reprint this article provided the author's biography remains intact:
About the Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.
|
|
| Keywords: car, car insurance, third party, yourself and others, insurance, insurance policy, car insurance policy, 'car insurance', cover, insurance is what |
|
|
