Being able to find the best comprehensive cover for the smallest amount of money, may be a great task, not to speak of the premium hikes because of the model of your car, the neighborhood you live in, even the colour of your car! The following must be taken into consideration when buying a car and having it covered:
Insurance premiums are calculated according to several risk factors. These are the factors identified by the insurance company as the most likely to have an impact on the insured person against risk occurring. Insurance is a significant cost associated with the item insured and should not be rushed into. It is always a wise decision to shop around for the best price- and coverage available seeing that Insurance premiums will vary considerably from insurer to insurer.
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 are prepared to wait.
You should also look up insurers online and get instant quotes from their website. This is a very fast and effective method 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 variables that will 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 as a result.
You should also try to make sure you do not double-insure your vehicle. 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.
Car insurance premiums usually depend on factors such as what kind of car you are driving, the age of the car, how big the engine is, what make and model it is, even the colour! What type of insurance you require also plays a part: do you need only liability, or also comprehensive cover? What use you will make of the car, for example, will you commute to work and how many miles do you planning 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.
Considering the factors involved in determining your car insurance premiums, it is important to take the above into account before purchasing a vehicle and to take out the necessary insurance.