How To Find The Ideal Car Insurance Policy
Car insurance is a legal requirement in the UK so driving without the required levels of cover is actually a criminal offence that can result in imprisonment for serious cases. So with car insurance being compulsory, what factors should you be looking at when you are trying to find the best value policy?
Insurers treat age as one of the major factors when pricing their policies. Males between 17 na d25 have proved to be the most likely to make claims and so are charged the most by their insurance companies. On the other hand, a lady in her 50′s is seen as a much lower risk and would therefore find car insurance is cheaper for her.
The amount of cover that you receive under the terms of your policy also determines the cost of your car insurance. Comprehensive insurance is the most expensive but does provide cover for you car and all third parties involved in a claim, minus any excess payments due. Third party cover is generally the cheapest but does not pay out for damage that your vehicle, but only to third parties, as the name suggests.
You will quickly see that when you are comparing car insurance quotes, that the costs charged by the various insurers and brokers can vary by quite large amounts. So whilst your circumstances are the same, each company is actually comparing the risks of you making a claim against its history of claims and specific risk factors. these vary from one company to the next, hence the difference in quotes that you may receive.
This might sound complex but actually insurance is all about balancing risk with profit so when you apply for a policy with an insurer, they are looking at the chances of you making a claim and then pricing their policies against that risk.
Insurers take many factors into account when calculating their premiums. It is not just the type and make of car that they consider, but factors such as your age and employment, whether you are married or not and your claims history. Your gender and where you live are also considered as a woman over 50 living in a rural village is probably less likely to make a claim than a male twenty something living in a major city.
How far you intend to drive each year also plays a key factor in the costs of car insurance as the risks of you making a claim increase with the more miles that you travel. Travelling for business, as a rep or van driver would do, also boosts the cost of motor insurance as there is more chance of a claim being made by these sorts of drivers.
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