What Are The Major Factors That Affect Car Insurance Policy Costs?

What Are The Major Factors That Affect Car Insurance Policy Costs?
July 21 05:06 2017 Print This Article

When you think of getting a new car, subconsciously we think of the best car insurance coverage we could get for it. In a country like the Philippines where car insurance is compulsory, one needs to carefully gauge the best car insurance policy that he can get for his car.

Car insurance is a pre-requisite for vehicle registration. In other countries where car insurance might not be compulsory, it is still advised to get one for every vehicle that you might own without fail.

When you are looking for car insurance policies, accidental damage, bodily injuries, and repair costs of the vehicle are usually covered in it. However, some insurance companies offer car insurance coverage extensions like car replacement options, no claim bonus, breakdown insurance, and uninsured motorist coverage. The total cost of your policy might shoot up due to additional features that you may opt for.

If you are wondering why you are paying a higher rate than your friend who bought a car last month, then you must know that basic costs of your car insurance policy depend on many factors.

One such factor is your age and gender. Younger people have to pay higher rates than older people. Statistically, younger lads are prone to be in road accidents more than anyone whereas older men are less prone to be in accidents as compared to older women. Similarly, married men pay lower rates than single men due to a survey that says that the latter is more prone to being in car accidents.

Another major factor is the type of car that you own. If your car has better safety features, your insurance rates automatically go down. For instance, if your car has an anti-theft feature, it is less likely to get stolen which is why your insurance costs might be cheaper. The safety rating of a car is an important aspect.

The make and model of your car have a heavy influence on the insurance policy. In this case, the insurer inspects how much replacing or repairing the damages on your car will cost them. If it’s a car in the lower range, you are owed a hefty discount. On the other hand, if your car is a high-end model you are meant to pay higher rates than others who are insured.

Your driving record also influences the car insurance costs. If your history shows that you have been in road accidents multiple times, there are automatically more chances of your car getting damaged while you are behind the wheel. On the other hand, if you have a clean driving record where you have been not in a car accident then the insurer is bound to lower your policy costs.

In the case of an accident, theft, fire, animal attack, vandalism, etc. the insurer pays your medical and repair bills after deductibles. It is advised to read your car insurance policy in fine print and customize it according to your needs if the company has provisions for it.

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Anthony Fusco
Anthony Fusco

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