Everyone wants a great deal on their car insurance
, that's human nature.Your car is often the second most valuable item you own after your house and protecting it for some people is not negotiable.If you have taken out a loan to purchase your car then you are pretty much always required to have comprehensive car insurance as a condition of the loan being approved.How can you get the best price and make a proper car insurance comparison and ultimately the best price.
Here are some of the things that affect the price of a car insurance policy.
Car Value: quite simply, the lower the car value the lower the price you pay for insurance.This isn't really rocket science and makes perfect sense.If your car is worth more, then it costs more to fix if it is involved in an accident and is written off, the insurance companies therefore charge you more to compensate this higher risk.
Your Insurance Rating: Your insurance rating is a way for insurers to determine how safe a drive you are.If you have had a few crashed and car insurance claims then you may be considered high risk and will pay a higher price for your car insurance.Rating 1 is the best and having no rating is the worst.Every time you make a claim, your rating will go down and you will pay more.Rating 1 usually gets a 50-60% difference.When a policy is $2000, a 60% discount means a saving of over $1000 so it literally pays to be a good driver.
When you first get your license you will have no rating.Each year you will go up a rating from 5 to 4 to 3 and eventually to rating one.If you are a very safe drive you may even get rating 1 for life if you get that then you are sitting pretty for cheap car insurance for the rest of your life.Insurance companies which offer lifetime rating one usually do so after a person has held rating 1 for at least 5 years.So if you get your full license at 22 then you would have to wait til you are 33 year old to be considered for a lifetime rating one.
It has become easier to compare car insurance and although prices will vary, there are certain risks that take up a large part of the price.Aiming to reduce these costs can make a large difference to your car insurance over the years.