Car Insurance, Myths And Facts
Author: Adeel
BASICS OF CAR INSURANCE
Insurance premiums are paid to insurance companies to offset any untoward loss. So premiums can be explained as guaranteed and known small loss by policy holder to prevent a huge financial or non financial loss. Companies charge you in case of any contingency.
When companies take your details they measure level of risk your profile poses, which depends on many factors to mention a few.
a) Age and Gender, e.g. 18 to 25 are highest risks, while 50- 65 years old are safest, so women are assumed to be safe drivers.
b) Car specification-cars are classed into different groups and so accordingly measured against risks.
c) No. of claims you have in any particular years, companies usually want to know your record of making claims in 3 or 5 years
d) Any criminal record or motoring convictions.
e) Area where you live, areas have different measures depending on number of claims made from local population.
f) Personal details, whether you are single or married, tenant or homeowner etc. (Married person pays less).
g) Credit ratings.
h) Use of vehicle. Will you use your car for leisure or domestic use or will have any commercial use.
i) Average miles per year. Lesser mileage can earn you smaller premium quotes.
j) How old is your driving license. It can be useful if you have no claims discount.
k) How many cars you have or how many people drive your car, if you have access to multiple cars like a company car or any other family owned car then it impacts your policy.
l) Any security or car protection devices. They are very likely to reduce your premiums like Thatcham.
m) Job, very important as companies make a database of claims made by different individuals and classifies them with specific occupations and it impacts your premiums if you work in same industry or profession.
You can expect any insurer or their brokers asking you more or less same questions focussing on above given points or may be adding few other questions. Insurers try to make a picture of you but their appraisal of facts can be different so you get different quotes.
To apply for cheap car insurance or to see exclusive comparison sites,online brokers and insurance companies,click HERE.
Don’t forget to read our other useful pages e.g MOT,to find out everything about MOT,how to avoid failing MOT, retest fees and finding a cheap,reliable MOT test centre near your home run by your local councils.
Warranty,to find out best policies.
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Breakdown cover,to find out best policies and deals.
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