subject: Factors Companies Use To Deterine Insurance Premiums [print this page] Car insurance companies make use of a variety of complex equations and multiple factors to determine premium rates they charge individuals for an insurance policy. Some of these factors, such as age and gender, cannot be altered. Nevertheless, other factors, such as the make and model of one's auto, or the type of policy an individual purchases, can be manipulated favorably towards the motorist in order to make sure lower rates on year automobile insurance premiums.
For example, many automobile insurance companies will give discounts to motorists whose vehicles possess anti theft devices, such as alarms, window sketching, or steering column locks. Similarly, the make and model of the automobile an individual drives will affect their auto insurance premiums. Luxury cars and sports cars are typically more to insure due to the increased amount of expense that comes along with costs for repair in the advent of an accident. Furthermore, when it comes to buying a vehicle insurance policy, a motorist ought to purchase their policy in a twelve month increment, rather than six months. Buying a yearly policy versus a six month policy locks in a rate for the motorist, which cannot be altered for twelve months versus six months.
When a motorist is shopping for cheap vehicle insurance, he or she ought to not be afraid to ask for discounts on their policy. For example, if there is a need for more than one car to be insured, the motorist may meet the requirements for a multiple automobile discount with their insurance company.
Furthermore, a motorist may qualify for a group discount if they are affiliated with a clear organization. These organizations can vary from credit unions, to motor clubs, or charitable organizations. As aforementioned, the forms and monetary amounts of insurance a motorist purchases for their automobile will affect how high one's insurance premiums are. For example, all-embracing insurance is only needed by law if a car has an outstanding balance or loan on it. An insurance company will not pay to repair an automobile if the amount of the damages exceeds the current market appreciate of the automobile.
by: Benjamin Smithfield
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