Car insurance risk factors

Image

Motor insurance is something that all drivers require. When it comes to the premiums you need to pay, rates differ dramatically, and this all comes down to one thing: risk. Insurance is all about risk. You are going to be subject to more expensive premiums if you are considered a great risk.

In order to determine how ‘risky’ you are, insurance companies look at a number of different factors. One of the most critical factors is age. Statistics shows that older drivers have fewer accidents when compared with younger drivers. This is why you can expect to more for your insurance if you are under the age of 25 years old. Once you reach the age of 25, if you have done so without incident, you can expect the cost of your motor insurance to reduce.

There are other ways you can keep your premiums low as a young driver, so do not fret. One example includes choosing a vehicle with care, as some are more expensive to insure than others. Companies like Oodle Cars can help you with this.

Gender used to play a role in the premiums quoted, but this is no longer allowed. Men are considered to be riskier than females. While females are more likely to make a claim in general, you will find that the vast majority of these are for incidents of low speed, which result in less repair work.

The type of vehicle you drive also has an impact on the price you are quote, as the vehicle type will impact how easy it is for repairs to take place and how cheap they will be.

Choosing The Best Insurer

Top insurance companies are not difficult to come by. However, there are also some unscrupulous insurers, who cannot be trusted. The last thing you want to do is end up taking out a policy with one of these insurance companies. With that in mind, read on to discover how to choose the right insurer for you.

There is a lot to be considered when comparing insurance companies. Of course, cost will play an important role. Nevertheless, you should not simply look at the premiums. You need to think about the cover you are getting in return for the money you are spending so that you can spot the best value. Also, if something seems too good, it probably is. Approach any extremely cheap quotes with caution.

You should also consider the way in which the insurance company will handle any claims that are made. There are insurance companies that will take their time to pay out; they have a reputation for dragging out the claims process and making it difficult for you to get the money you are entitled to. Instead, you should expect an insurance firm that will pay any valid claim you file, and do so quickly.

You also need to choose an insurer that has the necessary licenses, and all of the qualifications and training required. Make sure they have a good reputation in the industry by doing a bit of research online.