Factors Affecting Car Insurance Premiums

June 6, 2017 · Posted in General 

No one wants to be “taken” on their insurance premiums. It is hard not to view these payments as money down the drain, so many of us use price quotes as the deciding factor when we select auto, home or household insurance.

This is when we find out what kind of service our premiums have been paying for, and, we shouldn’t be surprised to find that we get what we pay for. That is a choice many consumers come to regret when the time comes to file a claim.

That said, you’re able to find companies that quality services at decent prices, and finding out how to compare insurance quotes, among other things.

It is important to research insurance when you are starting to look for insurance. There are many terms, and practices that you need to be familiar with. There are many sights online that can help you learn about car insurance and the terms, some will even offer online quotes. It is important that you not feel pressured to make a decision on the spot. You may end up calling specific companies for details on options, but before you make the call make sure you know what they are going to be saying to you.

When you start negotiating with the insurance company, you’ll hear novel terms and listen to consultants who try to pull fast ones on you. You need to know what will happen when you submit a claim, and what the terms of your policy include. Ask any questions that you need to ask to clarify the policy. Any company that wants your business should be willing and able to explain its policy to your satisfaction.

It is important to understand how insurance companies determine properties. It comes down to your risk level. If your risk level is high so will be your premium and vice versa.

Factors Affecting Premiums
Several factors influence your risk profile, including, age, gender, place of residence, the value of the item(s) to be insured, your history of claims, the type and amount of cover you want to buy and the risk the item(s) being insured are exposed to. These factors can influence the various types of insurance in different ways, but some have the same effect on each insurance type.

If your place of residence is in a high crime area, your home, household and car insurance premiums will reflect the increased risk of possible theft, burglary or hijacking.Increased security measures, if they exceed the insurance company’s requirements, will lower home, household and car insurance premiums.

One way to decrease your premium is by increasing the excess amount, this is the amount that you pay when you have a claim.

You can receive a discount if you have a history of claim-free years. First-time insurers will not be eligible for this discount until they have built this history.

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