FactorsThat May Affect Your Car Insurance Premium: If a driver is looking for cheap auto insurance because where
he resides, insurance is already mandatory, or he simply wants to feel safe but
does not have the money, there is no reason to worry since the coverage
requested is that of Civil Liability or damages to Third Parties, which is the
cheapest of all.
Nowadays, it is very important to take out insurance,
since an automobile accident can cost up to 20 thousand Dollars a month, not
counting the medical expenses for injuries. Reports from the National
Commission for the Protection and Defense of Users of Financial Services
(Condusef), indicate that most people do not take out car insurance policy because
it seems an unnecessary expense.
If you are considering choosing the most basic coverage,
the following article will give the
benefits and exceptions, in addition, that if you do not convince what it
covers there are a number of tips to reduce the policy premium.
What
determines your car insurance premiums?
Each insurer has various speicific ways of operating and
determining the price of each coverage, but there are some factors that
influence to achieve a cheaper policy and on which much depends on who requests
it, for example:
Car model: It is preferable to choose a
commercial car since if the vehicle is high-end, the premium is likely to
increase because its parts are difficult to find. It is not difficult to
investigate about the cars whose resale price is higher.
Power of the car: some insurance
companies consider that if the vehicle is high-powered, the person who likes
high speeds, the probability of an accident is much higher than a low-power
car.
Special Equipment: If
a stereo is added to the car and is required to be covered by insurance, the premium
of car will go up. But if add a satellite locator it will decrease the insurance
cost because the driver is supporting the safety of the car.
Sharing the risk: to
decrease the price of the insurance, you can choose to increase the deductible,
if an accident occurs, the insured will put the necessary expenses out of his
pocket. For example, in the event of any loss of 80 thousand dollars for the
claim, and if the deductible is 10%, the user will be paying 8 thousand dollars
on their own.
Theft of the vehicle:
there are some car models that are more likely to be stolen, the ideal would be
to avoid the favorite models of outsiders or, otherwise, add a security team.
Regarding
the driver:
Age: From 25 years old,
insurance companies consider the person to be a very low-risk driver.
Unfortunately, people under the age of 25 are ahead in terms of road accidents,
so under-25 car insurance has slightly
higher prices.
City of residence: Not
all insurance companies apply it, but some companies look to see if the place
where you reside is dangerous.
Marital status: For
companies, the probability of loss changes if you are single or married. This
is because they are very different lifestyles.
Car History: A
driver with multiple reported accidents and fines won't win the insurance
company’s trust, these kinds of details will only increase the premium
considerably.
Profession: yes, there are some professions
more risky than others, for example, car drivers or those in which you have to
travel a lot.
As mentioned before, each insurance company has its own
system for calculating the premium. Some insurers are not interested in the
applicant's zip code or profession. You also have to consider the exclusions of
each contract so as not to get a bad surprise when you need to call the
insurance and the claim is not covered.
Comparing
insurance helps save on premium
Recommendations from users are a good option to choose
cheap auto insurance, however, each person drives differently and has very
different lifestyles.
You don't have to get carried away by the first insurance
you find, no matter how urgent the situation is. Comparing the different
coverages with their benefits will help you have a better choice.
The important thing is not to get carried away with the
idea that auto insurance is unnecessary. Sometimes accidents do not depend on
the driver and, for personal safety and loved ones, it is advisable to have
one. Also, the monetary costs of not hiring from a company or choosing cheap
insurance can be much higher.
To compare insurance reliably and accurately, Rastreator
is a useful tool to do so. The insurance comparator will help you in minutes to
select the best coverage with its benefits and guarantees in order to make the
best choice.
