Car Insurance Pricing Plans


The law requires liability insurance for all drivers and
vehicles.

This means that if you
are involved in a serious accident, and it turns out that it was
your fault, your insurance company will pay out any claims that are
made against you. Extra coverage on your own vehicle, called
comprehensive insurance, is optional.
Insurance companies based on a number of risk factors will
calculate the price you pay for this insurance. Basically how it
works is the more they feel you are at risk of crashing, and the
more they think the resulting crash will cost them, the higher the
premium you'll pay.


Assessment
Common factors that will be used to assess the premium are the
value of the car you're driving, the safety of that vehicle, the
coverage you want, will there be deductibles or limits etc.? How
much you'll drive the car, how your driving record stands, how long
you've held your license, your age, and if you are young, also your
sex.
The premium is then calculated. Usually there is a flat per car,
per year rate that everyone pays, regardless of other factors.

The
other factors will then alter this rate, generally upwards. So if
your car is especially fast or dangerous your rate will be
increased by a set amount. If it is very old, your rate goes up. If
you've had one or more accidents in the past, your rate will go up.


If you're young and
male, your rate will go up. The
more of these factors you satisfy, the more your rate will be
going up.
Discounts
As a sales enhancement, many car insurers offer a "low estimated
future mileage" discount to
customers who predict that the
car's mileage will be below some stated limit during the next
premium period. There is no verification involved and no
additional charge if the car is subsequently driven more than
the stated amount.

This arbitrary discount tends to foster
customer belief in the mistaken idea that "miles" are just one
of many classification factors used to raise or lower prices
from the territorial base rate. In fact, odometer miles (which
insurers do not use) are not a factor but a metric - the only
valid basis for measuring each car's consumption of insurance
protection in on-the-road use.
The best way to save on car insurance is to shop around, keep
a good clean driving record, drive safely, and choose reliable cars
that are not known for their power and speed.
Joseph Kenny is the webmaster of the insurance site
.

insure121.com/ where you will find
information, news and links to the leading providers of
car insurance in the UK.
Joseph Kenny is the webmaster of the loan information site
.ukpersonalloanstore.

co.uk. At the
Personal Loan Store you can find some of the latest
personal loans explained in detail.

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