subject: What families need to know before paying for car insurance [print this page] What families need to know before paying for car insurance
It may seem pointless to compare car insurance companies I mean your car is always going to be worth the same amount no matter which company you sign up with and the risks are always going to be the same out there on the open road. So how can different companies afford to charge less for an insurance premium?
Basically some companies can offer cheap car insurance as they spread their risk over the entire lot of their customers. If, for example they know (statistically speaking) men make more insurance claims than woman, they can afford to reduce the price females pay for insurance.
Different premiums depending on age
It generally boils down to experience. It has been proven through years of data that more vehicle insurance claims are made by those who have had less experience driving. Those who are younger are more than likely to be involved in a car accident therefore insurance companied charge more for this age group.
Younger male drivers also may have a greater tendency to speed and behave recklessly on the roads when compared to female drivers of the same age.
Some cars are more expensive than others to insure
It is wise to compare car insurance companies based on the type of vehicle you drive. For example many people think that 4WD cars are safer and may cost less money to insure. The truth is that many larger cars like 4WD's or SUV's have a higher centre of gravity compared to other road cars and could be adverse to more accidents, due to how they handle on the road.
Sports cars are also more to insure especially those with turbo engines or more than 6 cylinders. The reason is they are more desirable to steal and perhaps because of their greater power can mean a greater chance of being in an accident.
When making insurance comparisons be wary of the fine print
Whilst researching for this article we found out that some insurance companies will actually cancel your policy after the first claim. This is rare however can easily happen It is then up to you to re-insure yourself.
If this is not the case with your insurer they will probably increase the premium you pay each year. They do this because statistically speaking people who are involved in a car accident are more than likely to be involved in more than one. For insurance companies to cover themselves they simply increase the price for the insurance in the first place.
The last thing to take into consideration is the cost of comprehensive car insurance in the first place. If your car is getting older and the price of the excess is the same price as what your car is worth, then it would not be a good idea to continue with comprehensive insurance.
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