If you do not want your car insurance policy to become a financial burden for you, look for ways in which the cost of the insurance policy can be brought down. Apart from shopping around for cheap insurance quotes and comparing the rates offered by different insurance providers, it is also advisable that you look for ways in which you can slash the premium rates for your policy. Premium rates of car insurance are determined by a number of factors. Depending upon the level of risk that the car insurer is subjected to, the premium rate of the insurance policy is determined. It is important to assess the risks that one is exposed to in order to know the premium rate.
Total cost of the car insurance policy can be brought down if one lowers the premium rates. Premium rates are determined by the risks that a person faces of being involved in an accident. Therefore, premium rates will be high if the risks are high and if the possibility of a person of being involved in a car accident is low then the premium required to pay for getting the vehicle insured will also be low. One should get a proper understanding of the factors that influence the premium for the car insurance policy. Following are some of the important factors that affect the premium rates.
Age-Often insurance agents offer insurance policies after looking at the age of the motorist. Car drivers between the age of 18 and 25 are basically extended insurance policies that have a wider coverage with higher premium rates. Premium rates for young motorists is often kept at higher limits since there is a common belief that they stand a higher risk of meeting an accident than senior citizens in the age group of 50-65 years. Most insurance companies regard motorists in the age group of 25-55 years as safe drivers and they also extend huge discounts to them when selling them insurance policy.
Geography-The area where the car insurance applicant resides and the place to which he regularly drives the vehicle is also taken into account when extending the car insurance policy. Car insurance premium rates can be lowered if the person resides in a less-traffic area as he is exposed to much lesser risk of getting involved in an accident. A person residing in a crowded, accident-prone zone is likely to be offered car insurance policy with higher premium rates as risks of meeting with an accident is higher. Moreover, people who stay in areas that have higher record of car thefts will be charged more premium rates than the ones living in neighborhoods that have low car theft record.
Driving experience- A person with good amount of driving experience and a clean driving record will not have to pay higher premiums as opposed to a person with a history of bad driving.
Apart from the above-mentioned factors, credit scores, vehicle-type, education and occupation of the driver largely determines the premium rates of the insurance policy.
Total cost of the car insurance policy can be brought down if one lowers the premium rates. Premium rates are determined by the risks that a person faces of being involved in an accident. Therefore, premium rates will be high if the risks are high and if the possibility of a person of being involved in a car accident is low then the premium required to pay for getting the vehicle insured will also be low. One should get a proper understanding of the factors that influence the premium for the car insurance policy. Following are some of the important factors that affect the premium rates.
Age-Often insurance agents offer insurance policies after looking at the age of the motorist. Car drivers between the age of 18 and 25 are basically extended insurance policies that have a wider coverage with higher premium rates. Premium rates for young motorists is often kept at higher limits since there is a common belief that they stand a higher risk of meeting an accident than senior citizens in the age group of 50-65 years. Most insurance companies regard motorists in the age group of 25-55 years as safe drivers and they also extend huge discounts to them when selling them insurance policy.
Geography-The area where the car insurance applicant resides and the place to which he regularly drives the vehicle is also taken into account when extending the car insurance policy. Car insurance premium rates can be lowered if the person resides in a less-traffic area as he is exposed to much lesser risk of getting involved in an accident. A person residing in a crowded, accident-prone zone is likely to be offered car insurance policy with higher premium rates as risks of meeting with an accident is higher. Moreover, people who stay in areas that have higher record of car thefts will be charged more premium rates than the ones living in neighborhoods that have low car theft record.
Driving experience- A person with good amount of driving experience and a clean driving record will not have to pay higher premiums as opposed to a person with a history of bad driving.
Apart from the above-mentioned factors, credit scores, vehicle-type, education and occupation of the driver largely determines the premium rates of the insurance policy.
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