Car insurance protects a car owner against any third party liability
, theft or damage to the car. Car insurance also means that it will also pay for the injuries which occur because of the negligence of the driver or car owner while driving the car. These are actually the various types of coverage which car insurance companies provide to the car insurance owner, but they also charge a premium on a regular basis.
The cost of car insurance depends on the type of coverage an individual is opting apart from other factors like the type of car. The smaller the car the lesser the cost is. Volkswagen's small car category is one such category, where insurance cost is the lowest as compared to the other cars' cost. The cost of insurance also depends on various aspects, such as the safety features like the airbags, the seat belts etc which are there in the car for protection.
The cost of insurance also varies with driving history, age and the gender. The variation can be negative or positive. When it comes to poor history of driving then it is negative that is, the insurance cost goes up from the average. Bad history is a serious issue which every company considers. Similarly age group in case of male takes a negative side and the insurance cost again go high because the younger generation below 25 years of age is considered to be high risk category and therefore they pay more than the others. But in case of gender if it is women it becomes positive since women are considered to be safe drivers.
So formulation of car insurance is difficult at the part of insurance provider also and on the behalf of customer it is a work full of hassle because there are too many criteria to be looked into and too many companies to be considered upon. For making the thing easy every government give a minimum amount of liability insurance which has to be taken by the customers.