Cheap Car Insurance – How Do They Figure Out My Rates?
People are often curious to know what information is used to determine the cost they will need to pay for their cover. The insurers use many different things when figuring out the price you will need to pay each month to attain cover, whether you have third party cover or comprehensive. Some of the things they use to come up with your costs:
1. Your age- If you are a drive that has been on the road for while, and haven’t accumulated many points, you can be assured of getting cheaper rates on your cover. However, if you are a young driver just starting out, your rates will cost more than anyone else’s will. This is because insurers use statistics to tell them who is a risk for them to insure and who isn’t as much of a risk. Since they will always cover themselves, if you are deemed to be a risk for them, you will have to pay for it. Since young male drivers are involved in the most accidents, then they are the ones that will pay the most for cover.
2. Where you Live- Where you park your car also has a lot to do with your costs when it comes to cover. If you park in an area that is always seeing break-ins and stolen cars, then your rates will certainly reflect that. The greater the chance of you filing a claim, the more the insurance will make you pay. You can lower this cost if you always park either in your garage or in your driveway, never on the street. Every time you have to file a claim, your costs rise. So play it safe.
3. How Many Miles you drive- For those that use their cars very little, they will have lower rates than for someone that uses their cars for work purposes. The fewer miles you drive, the cheaper your costs. If you don’t have to drive as much as you do, consider driving less to save on your car insurance.
4. The kind of cover you purchase- If you get comprehensive cover, you can be sure that your rates will be higher than if you just get third party cover. This is because much more is covered in a policy like this. In addition, many people get extras that add to the cost of their policies. Be careful when adding things to your policy like roadside assistance, since this can really raise your overall rates. While it is good to have, not everyone can afford it, so think about it well before making your choice. If it is something you can easily afford go for it, but if it is going to put you in a bind, it might not be worth it.
The ability to find cheap car insurance is within everyone when they take the needed time to really hunt for the lowest cost with a policy that provides the best cover.