Car Insurance - How Did They Calculate That?
by Joseph Kenny
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Insurance premiums are
calculated according to
several risk factors. These
are the factors identified
by the insurance company as
most likely to have an
impact on the insured
against risk occurring.
Insurance is a significant
cost associated with the
item insured and should not
be rushed into. It is always
a good idea to shop around
for the best price
available. Insurance
premiums will vary
considerably from insurer to
insurer so do your homework.
Shop Around Look up the various insurance companies you are interested in and ask them for a quote. They can usually give you a rough estimate fairly quickly and even more exact quotes should also be possible if you provide more details and wait. You should also look up insurers online and get instant quotes from their website. This is a very fast and effective way of shopping around. You will get a good idea of what prices to expect. You can also experiment with the quotation websites to see what effect it makes to your premium price if you select different options. With all insurance policies you will have a number of options that affect the price of the policy. Therefore you should think about these options and if there are risks that you do not wish to cover then let the insurer know as your premium should become cheaper. You should also try to make sure you do not double insure. It is a principle of insurance that you cannot benefit from the insured event's occurrence. So you cannot get paid twice even if you have two insurance policies. So if a risk is already covered by one policy, again let your insurer know so they can remove it from their calculation. Factors Car insurance premiums usually depend on factors such as what kind of car you are driving, how old it is, how big the engine is, what make and model it is? What type of insurance you require also plays a part, do you need only liability, or also comprehensive? What use you will make of the car, for example will you commute to work and how many miles do you plan on driving? Your driving history will be a strong factor in determining your risk, and linked to this will be the age of the driver, with younger drivers being significantly more at risk of being involved in an accident. If you are young, your sex will also be an important risk factor, however if you are older sex usually becomes less significant. About the author: Joseph Kenny is the webmaster of the insurance site http://www.insure121.com/ where you will find information, news and links to the leading providers of car insurance in the UK. |
