Have you ever wonder why car insurance costs vary from one company to the other? This is due to the different type of computation factors that the companies use to derive the insurance cost. Based on the answers that you replied to the company, they will add or discount the cost before arriving at a final price for your car insurance. Thus, it is important for you to shop around first before you commit yourself to a particular car insurance company as different companies take a different view of the various high risk factors. We will look at some of the factors that car insurance companies take into considerations.
1. Having a clean driving record
Without a doubt, car insurance cost would increase if you have been convicted of a driving conviction. Thus, it pays to be a safe driver so that unnecessary costs won't be incurred.
2. Adding additional drivers to the policy
By adding additional drivers to the policy, extra premiums will be added. Thus, do not add in drivers into the policy just because you think that this person might be using the car in the future. Consider carefully whether it is necessary to add this person into the policy.
3. The age and gender of the driver
If the driver is under the age of 25 the rate will mostly likely be fairly high. This is due to the lack of driving experience. Usually, you will need to have over three years driving to be quoted a lower rate. Also, a single male driver rates higher than a single female. This is because males are rated as a higher risk to insurance companies.
4. Your credit report history
Most companies take into account of your credit history. Paying your bills on time and maintaining a good credit history will allow you to enjoy lower car insurance cost.
5. Anti-theft alarm
Fix up an electronic central locking and alarm on your car. Discount could be given by insurance companies when you have anti-theft devices install in your car.
Justin Koh is a freelance writer whose articles have appear in most major ezines. You can find more of these at: http://www.carinsurancecentral.info
You have permission to publish this article electronically or in print, free of charge, as long as the bylines are included and the article remains unchanged.
Article Source: http://EzineArticles.com/?expert=Justin_Koh
Posts
Amazing ! I am so excited to learn about all these factors that insurance providers take into consideration while offering a policy. I will use all these points and try to lower the cost so as to make a cheap policy option.
ReplyDeletecommercial property insurance