Understanding how your insurance premium is made up and why it is the level it is, could ensure that you are paying the right amount.
With car insurance, the premiums vary according to the likelihood of you being involved in an accident or your car being stolen. The
premiums are directly related to a combination of various factors that include the type of car that's insured, the age and driving
experience of the driver and the number of claims that have been submitted.
The fewer and smaller the claims you have had in the past, the better your risk profile will be, which in turn ensures a better premium.
You may even be eligible for a discount on your vehicle insurance if you have never claimed.
Insurance companies classify clients according to various characteristics, including details such as where the vehicle is stored
overnight and the make, model and age of the vehicle. An important consideration is the fact that some cars are more susceptible to theft
than others. A very common model on the roads is easy to obtain parts for, so it is likely to be a greater target for theft, for instance.
Also taken into account is the safety record of the model you are insuring, plus the cost to repair or replace it. In addition, other
aspects such as whether you use the car for business or pleasure also impact on premiums.
It is presumed that the biggest risk to a vehicle is theft or a write-off, when in fact it is the cost of repairs. With cars today, even
entry level models, being increasingly sophisticated, the cost of vehicle repairs has risen as well. Components requiring repair often need
to be replaced instead of repaired, which increases the cost of repairing a damaged vehicle.
While it is not possible to control the portion of your premium that is affected by your car's make and model, you can keep your
premiums at an affordable level by claiming only when it is really necessary, if at all. This will ensure that your car security is as good
as possible. Driving safely to minimise the chance of being involved in an accident would also be beneficial.
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