Buying car insurance is essential for every car owner. It is important to have a cover for your car not only to safeguard it but also to prevent paying from your own wallet when you are involved in an accident on road. However, buying car insurance has become a difficult job for most people given the manner in which rates of insurance policies have gone up in the recent years. But you can still manage to get a low cost car insurance if you know the factors that deicide the premium of your insurance policy.
Types of car insurance
- Liability cover
- Collision cover
- Comprehensive cover
You buy car insurance to have a cover against thefts and accidents as your car is precious to you and you spent a lot of money buying it. You need to have liability cover in your insurance policy as you are held responsible for injuries to others and damage of property when you are involved in a car accident. This can make the policy costly but you cannot avoid this cover. You also need to include collision cover in your policy to cover for the damage to your car in case it is involved in an accident. This coverage provides compensation for damages to your car should you get involved in an accident. Finally there is comprehensive insurance that takes care of the repair of your car if it is damaged in a freak accident not caused by others.
Factors that decide the cost of insurance
- The size of car
- Your driving history
- Your credit score
- The coverage you require
If you can manage in a small car, there is no need to buy a luxury car or a sports car. These cars attract a higher insurance premium as their prices are high. If you and your family can travel in comfort in a small car, why spend more on a large car that also makes you cough more in terms of insurance?
How good a driver you are?
Your driving history is taken into consideration by car insurance companies. It affects the size of your premium. If you have a history of tickets behind you, you are perceived as a bad driver and insurance companies charge higher premium from you. On the other hand, if you are a good driver with no tickets issued in your name, you can negotiate and get a lower premium for car insurance.
What is your credit score?
If you have a high credit score, you are seen as trustworthy and insurance companies charge a lower premium from you.
Finally, insurance premium depends upon the kind of coverage you want. If you can accept to undertake minor repairs on your own, you can get a lower insurance premium.