Insurance companies consider your age, gender and driving record when calculating coverage and premiums. Statistics have shown that certain age groups are more likely to be involved in accidents while driving. This statistic is why insurance companies will raise premiums for the 18- to 25-year-olds. However, the company could reduce premiums if drivers are careful and do not file any claims.
Gender used to be a factor in females’ chances of being involved in accidents, but new studies show that male drivers are more likely than women to be in an accident. Males between the ages of 18 and 35 are the most at-risk. Insurance companies will also take into account the make and year of your car. You will likely pay higher premiums if your vehicle is high-maintenance, high-performance, or classic.
High performance and classic vehicles, such as trucks, are more expensive to fix. Therefore, premiums provide security for insurance companies. The company calculates the premiums over a period of time, in the hope that you won’t get into an accident. If you do, they will have to pay x amount to the company.
The company will also take into account your driving history including accidents, claims and incidents, arrests, tickets, and so forth. The premiums will be adjusted accordingly if you are considered high-risk. If your driving record is clean, premiums will be less. The mileage you drive each year will also be considered by the company. The premiums will rise if you drive more than 15,000 miles per year. You are considered low risk if you drive fewer than 10,000 miles per annum and therefore your premiums are usually lower.
Agents that offer car insurance will also take into consideration the location you live. You will have to pay more for coverage if your environment is dangerous. Costs include repairs, parts replacement, car worth, security level and acceleration. If you drove faster than the speed limit during an accident, you are responsible for the accident.
The agent will then complete the evaluation using a sliding scale and the premium cost.
What happens if my car is involved in an accident and I’m not covered by the NO Claim Discount?
Insurance companies rarely offer discounts for safe driving. To receive your discount, you must drive safely and wear your seatbelt. You will need an “Original Renewal Notice” from your previous insurer if you submit a “No Claim” Discount. If you want to switch insurance policies, the policy, the ‘original cert’ and any other details will be required. If you are the driver of your company’s vehicle and you are involved in an incident, you will need proof, such as the policy, the ‘original certificate’ and other details. Your company must also confirm that you are authorized to drive the vehicle. You will lose any discounts that are offered.
We can see that insurance policies are not only about the cost of premiums. You may find it helpful to search online for multiple quotes if your age is high. Many insurance companies are specialized in this group. To avoid high premiums, high-risk drivers and males will want multiple quotes. To avoid high premiums, all should obtain several quotes, as there are many insurance companies that vary in price.