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    Key Factors Affecting Car Insurance Premiums

    Compare Car Insurance Quotes Online - Global Technology 4u

    Insurers offer coverage to drivers depending on different risk modelling techniques. But do you know what the car risk model answers? How likely is it that this specific customer will make a claim? Today, the auto insurances have streamlined their risk modelling technique.

    The hurdle remaining when you want to compare car insurance costs is usually determining the risk classification of an insurance applicant to get the correct level of premium to charge. Keep in mind the main determinant factor is the value of the car. Having said that, below are key factors affecting car insurance premiums.

    Type of Coverage

    The type of car insurance coverage you need plays a vital role in determining the premiums you’ll pay. For example, comprehensive covers attract the highest premiums since it protects you against a wide range of risks. Other policies such as fire and theft are cheaper than the comprehensive car insurance cover.

    However, this coverage type doesn’t protect you from accidental damage. The third-party insurance cover will only protect you from liabilities arising from third parties affected by an accident involving your car. Be sure to understand your coverage needs so that you can determine how they calculate premiums.

    Driver’s Age

    Age is an important factor when it comes to car insurance policies. After all, it remains a strong predictor of whether the policyholder will make a claim. Younger drivers tend to be the riskier customers and it might prove difficult for them to get cheap car insurance.

    This may be because of their inexperience on the road and so they are more likely to cause road accidents. Most insurance companies are very cautious with drivers under the age of 25. While not everyone under this age is a risky client, but this age bracket is riskier than the other ages.

    Insurance Company

    Probably the biggest factor in determining auto insurance costs is the insurance company you decide to go with. Rates vary from insurer to insurer, and while there are other factors that comprise your driving profile, you might be paying too much for car insurance simply because the company is too expensive.

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