Calculating Insurance Premiums, what do I need to know?
Insurance is a tedious subject that means a lot of different things to different people. What does insurance mean to you? Insurance is very tough to calculate, so tough in fact, that insurance agencies hire large staffs whose only responsibility is to calculate insurance premiums.
For instance, car insurance is one of the plainer and simple types of insurance you can calculate. It comes down to two major factors. First off, what is your driving experience and secondly, what is your driving history like? If both these questions come back solid, you are in for a cheap premium. Driving experience can only grow with age, so if you are just starting out, unfortunately you have no option but a high premium.
The history is also factored into the equation. Accidents are generally not treated kindly in the insurance industry, especially if it was your fault. One small mistake in a vehicle and you may face years of inflated insurance premiums. It may not be fair in your opinion, but the car insurance company views accidents and those involved in them as "high risk."
It is your legal duty to report to insurance agencies any change in your driving status or if you are involved in an accident. When you sign up for car insurance, you sign a contract with the provider, promising to stay honest. People must also report stolen vehicles to the insurance provider as soon as possible. Stay honest with your provider and they will greatly appreciate it.
Understandably, drivers who are busted for driving under the influence of alcohol or drugs are immediately arrested and their license revoked. This could range from one to five years. It often depends on the driver's past record and if he or she is a repeat drug user. When and if the driver is allowed to drive again he or she will find outrageous premiums, and rightly so.
If you respect he road and drive defensively, your premium will reflect that. When it comes time to renew a comprehensive car insurance policy, the driver can have some sway over their premium. For example, the driver can take advantage of their "no claims" bonus, reducing the premium by a percentage. The percentage increase every year the driver avoids a major offense or accident.
Unfortunately, if you are in an accident, and especially if you're the one at fault ? you car insurance is going to go up. It's just the way of the game. That is why some people wish not to mention the accident to the insurance provider. The downside is the driver pays for the repair damages, but the positive of the situation is the driver's car insurance does not revoke its "no claims" bonus at the end of the year.
Wouldn't you like to save money? Of course you would, who could turn that offer down? So stop driving with reckless abandon, shape up, and earn a cheaper premium as the years progress. - 23211
For instance, car insurance is one of the plainer and simple types of insurance you can calculate. It comes down to two major factors. First off, what is your driving experience and secondly, what is your driving history like? If both these questions come back solid, you are in for a cheap premium. Driving experience can only grow with age, so if you are just starting out, unfortunately you have no option but a high premium.
The history is also factored into the equation. Accidents are generally not treated kindly in the insurance industry, especially if it was your fault. One small mistake in a vehicle and you may face years of inflated insurance premiums. It may not be fair in your opinion, but the car insurance company views accidents and those involved in them as "high risk."
It is your legal duty to report to insurance agencies any change in your driving status or if you are involved in an accident. When you sign up for car insurance, you sign a contract with the provider, promising to stay honest. People must also report stolen vehicles to the insurance provider as soon as possible. Stay honest with your provider and they will greatly appreciate it.
Understandably, drivers who are busted for driving under the influence of alcohol or drugs are immediately arrested and their license revoked. This could range from one to five years. It often depends on the driver's past record and if he or she is a repeat drug user. When and if the driver is allowed to drive again he or she will find outrageous premiums, and rightly so.
If you respect he road and drive defensively, your premium will reflect that. When it comes time to renew a comprehensive car insurance policy, the driver can have some sway over their premium. For example, the driver can take advantage of their "no claims" bonus, reducing the premium by a percentage. The percentage increase every year the driver avoids a major offense or accident.
Unfortunately, if you are in an accident, and especially if you're the one at fault ? you car insurance is going to go up. It's just the way of the game. That is why some people wish not to mention the accident to the insurance provider. The downside is the driver pays for the repair damages, but the positive of the situation is the driver's car insurance does not revoke its "no claims" bonus at the end of the year.
Wouldn't you like to save money? Of course you would, who could turn that offer down? So stop driving with reckless abandon, shape up, and earn a cheaper premium as the years progress. - 23211
About the Author:
Graham McKenzie is the content Syndication Manager at Insurance123.co.za South Africans leading car insurance information portal
posted by X - Men @ 4:34 AM
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