Car insurance is a must, although not compulsory in a number of countries. Insurance companies consider several factors before deciding on the quote and premiums. The good thing is you have online portals that can help you in comparing the options. These websites use simple filters and parameters to evaluate the expected quotes. You can always find out how you can compare car insurance quotes online in easy steps. In this post, we will talk about factors that can actually influence the same.
Evaluating types of cover
The first kind of car insurance is a comprehensive one, which covers everything, right from theft and fire damage to accident and damages caused by/to third parties, and expectedly, this is the most expensive. Then you can go for insurance that just overs third party damage, theft and fire damage, but doesn’t include compensation caused by you to the vehicle. There is also the third one, which is meant for covering damage to the third party, such as vehicle, property damage or medical bills. Most insurance companies usually have premium add-ons that can be considered, depending on how much you want to shell out.
Factors that make a difference
- Firstly, the location is a factor, because there are higher chances of accidents or theft in these areas. Insurance premiums in cities, for example, tends to be higher.
- If you choose to pay an excess on each claim, you can reduce premiums as this minimizes the weight of loss on the provider.
- It’s a no-brainer that expensive cars come with an expensive insurance premium, while basic hatchbacks and sedans have low quotes.
- If you choose to get life insurance or other insurance from the same company, you may get an additional discount. It depends on the company though.
- Most insurance companies also want to know if you have safe parking, especially for night, and believe it or not, this influences insurance premium.
- In many cases, capping the mileage per year can help in reducing the premium, although you need to check with the provider.
- If you have GPS systems, trackers and other alarms installed in your car, you are likely to pay a lot low in premiums.
- People who don’t claim for a few years can be rewarded by the insurance company with a special offer, which may mean low premiums.
- Surprising to many people, women often get lower insurance premiums than men, although that’s not always true.
- If you have completed an advanced driving course, your insurance provider may offer a better price than other novice drivers.
In most cases, insurance companies also consider the age and profession of the person before offering a car insurance quote. You can consider using these comparison sites to get a fair idea on insurance quotes, and we recommend that you get quotes from at least three providers, check the inclusions and take a call accordingly. Always keep the benefits as your first priority, even if that means paying a little more – Think of your car as an asset, and premiums as an investment.