Factors That Affects Car Insurance Premium

Mar 28 12:47 2009 Ricky Hussey Print This Article

Now a day’s most of the companies have made it mandatory to have insurance of your vehicle. You have to buy an insurance plan the very first day you buy a car.

Everyone wants an insurance policy which is cheap and satisfies his or her needs. One can buy cheap car insurance easily if he knows the factors affecting the premium. These car insurances can be of two types. The first and the most commonly used is an insurance plan which is made according to the need of different customers following the rules set by the government. The second type of insurance have premium fixed by government for different vehicles. This type is not used commonly as it does not satisfy everyone’s need.

Various factors affect the premium of car insurance policies. Some of them are: -

1.    The most important factors that decide the premium of your vehicle is the type of vehicle you have. For example,Guest Posting the parts of a sports car or a muscle car are very costly as compared to family or middle range cars. Due to this reason sports cars have higher premium than family cars. Motorbikes have less premium charges because if an accident occurs one can harm himself more than motorbike. Also the parts of motorbike are cheaper. One cannot reduce much in this factor.

2.    The second factor that decides the premium is the vehicle condition. If your car has been repaired more times, insurance company will charge you higher. If the age of the car is high or it has covered a huge distance your insurance premium may be high. To reduce the costs of premium in this factor try to keep your vehicle in good condition. Also new vehicles have less premium charges.

3.    The third factor that affects the premium is the number of times you have claimed before. The new premium charge also depends on the number of times you previously claimed. If one has claimed many times in his last year’s insurance the next premium will be higher. One gets a discount from the agent based on your previous claims. One can get huge discounts by avoiding some cheaper claims.

4.    One of the major factors that affect the premium of your car is the type of insurance you require. One can select different parts of a car to be covered in policy. If you select more parts the premium will be higher. One can select cheap car insurance by not including those parts in insurance that are less damaged.


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Ricky Hussey
Ricky Hussey

http://www.onlineautoinsurance.com is a leading auto insurance in Maine source. Click for more information on cheap auto insurance and other informative topics.

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