Tuesday, November 12, 2013

Some Facts to Keep in Mind While Looking for Car Insurance Policies and Rates

Getting the right insurance for your car requires a great deal of effort on one's part. It calls for analysing and collating information, requesting for quotes for at least two or three insurance providers and deciding which is the right one for you.
There are several facts that govern and can affect the amount of vehicle insurance you pay, some general and some personal. Getting information upfront on how and what really can affect your insurance coverage can help you make a more practical decision that can lower your expenses and better your coverage.
Some personal factors that could impact your insurance coverage.
1. Age and gender
It is generally seen that young male drivers usually attract higher insurance premium rates than young female ones. This could be because statistics show that more young men are involved in car accidents than young women. However, it is equally interesting to know that older men can get more competitive and better insurance rates than older women.
2. Marital status
Being married significantly reduces insurance rates primarily because married people come across as more responsible towards family and other road users. However, single people with clean driving records and nil accidents or traffic violations are sure to receive a good premium.
3. Home location
Your place of residence also plays a part in determining insurance rates. Studies show that densely populated neighbourhoods with more vehicle numbers plying the roads are accident prone areas. Along with higher risk of accidents in such areas, car thefts and collisions also rank high. Such risk factors mean that you could incur greater costs in repairs and maintenance.
Another singular factor in location determination are the high numbers of uninsured drivers, i.e. certain urban areas with higher rates of unemployment have left car owners less affordability to insure their cars.
4. Profession or career
Some professionals or career choices - e.g. cab drivers, delivery personnel, journalists - are seen as more risky by vehicle insurance companies because those people spend more time driving their cars around raising the chances of injury or accident. Often it is noticed that insurance companies provide better insurance packages to "safe people" - nuns, paramedics, police officers etc. - as they are perceived more as being more careful than the average vehicle driver.
5. Driving History
If you have a previous record of unsafe driving, traffic offence or been involved in an accident, you are probably going to be faced with paying more for insurance coverage. Insurance companies usually reserve the right to refuse providing insurance cover if your past record shows an indication of high risk or likelihood of traffic violations or accidents.
6. Credit rating
This is not a pre-requisite in many cases but a low or poor credit rating could mean paying higher insurance premium rates.
Besides these, there are a few other broad factors that could have a bearing on vehicle insurance. Some of them especially concerning the vehicle, are:
• Age of the car
• Size of car
• Safety rating of the car
• Possible likelihood of theft - depending on brand and model of car.

Article Source: http://EzineArticles.com/8108131

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