Car insurance is a requirement of the law. All drivers in the UK must be insured and driving a vehicle that you are not insured to drive is a criminal offence. There are hundreds of car insurance companies in the UK and prices can vary dramatically depending on who you are and what car you drive. We look at some of the factors that you should consider when finding the best car insurance in this article.
For instance male drivers between the ages of 17 and 25 are considered to be the one of the highest risk categories whilst woman in their 50’s are considered to be the lowest. Other factors such as your occupation and address can also affect your premiums.
The amount of cover provided by a policy also determines cost. Whilst third party insurance meets the legal requirements and is generally the cheapest, it only provides cover for any third parties involved in a claim. Any damage to you or your vehicle is not covered by this sort of policy.
You will quickly see that when you are comparing car insurance quotes, that the costs charged by the various insurers and brokers can vary by quite large amounts. So whilst your circumstances are the same, each company is actually comparing the risks of you making a claim against its history of claims and specific risk factors. these vary from one company to the next, hence the difference in quotes that you may receive.
Although car insurance might sound complicated, it really isn’t. Basically the car insurance company is assessing the likelihood of you making a claim and if you do the level of payment that will have to be made. From this they determine the price they want to charge you, which is the the car insurance premium.
The premiums charged by the insurers will depend on the specifics of your car and also your own circumstances. Your occupation, where you live and whether you use your car for business will all contribute to the premium.
How far you intend to drive each year also plays a key factor in the costs of car insurance as the risks of you making a claim increase with the more miles that you travel. Travelling for business, as a rep or van driver would do, also boosts the cost of motor insurance as there is more chance of a claim being made by these sorts of drivers.
Visit this link if you would like to find out more about car insurance and the sort of information that insurance companies want.
Tags: car insurance, finance, insurance, motor insurance, Personal Finance