Several factors contribute to determining the price of an insurance policy, as the price varies from one insurance company to another. While some providers take into account, for example, the number of kilometers you drive each year, others do not care about such data. Either way, to get the best car insurance rate, check FreewayInsurance.com.
To learn more about these factors, we have picked the five most common and most important points that determine if you have a chance to get the cheapest auto insurance.
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The age of the policyholder
The policyholder’s age is one of the most important indicators of the final price of the insurance. From the insurance company’s point of view. For example, young, inexperienced, or elderly drivers whose driving skills can be affected by various health problems.
For these drivers, the risk of accidents increases dramatically, and the cost of their policy is often higher than usual.
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The car’s age
The insurance price is significantly affected by the age of the policyholder and by the age of the vehicle. Simply put, the more you pay to buy a car, the cheaper liability insurance will be.
New cars tend to be in better technical condition and often have modern equipment that helps prevent accidents. As a result, insurance companies take less risk in paying insurance benefits. They can offer you a cheaper insurance policy.
With the development of intelligent driver assistance systems, this aspect will become increasingly important.
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Place of residence
Another important factor is the location of the car owner’s residence. For example, in cities, there is heavy traffic, and therefore the probability of an accident in the city is much higher than the risk of an accident on quiet roads in high villages. This is what insurance companies think.
For example, drivers based in Paris have to pay a much higher cost than people who drive in Domme.
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Driving record
If you have been in a traffic accident in the past and filed a claim, this means to the company that you are more qualified to file another claim, compared to a person or driver with a clean driving record. If you have a bad record, some insurance companies will likely refuse to issue an insurance policy for you.
Fortunately, these problems tend to fade over time. For example, if you have had troubles on your record, and then make an effort to drive slowly and carefully to avoid getting into trouble or accidents, your efforts may pay off later. The effects from an accident or claim depend on your record after three years, and accidents after five years. As for accidents caused by driving under the influence of drugs or drinking alcohol, it may extend up to 10 years. Some companies may refuse to give you an insurance policy.
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Safety and Security Assessment
Having a car with high-level safety features helps you get fewer accidents. Many modern cars are equipped with Lane Keeping Assist, Automatic Emergency Braking, Rear Cross Traffic Alerts, and Blind Spot Monitoring that helps you avoid traffic accidents, and vice versa.
Other safety features such as airbags, automatic seat belts, and TCS – or anti-lock braking system – also help protect the driver from injury or injury, so less risk means a lower premium.
Read Also: 8 Reasons why your Restaurant Needs an App
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Job type
Insurance companies link the profession of the insured with the risk of crashes. The company may adjust the car insurance premium if there are indications of the insured’s risk of an accident. For example, delivery drivers and journalists spend a lot of time driving on the roads, which is why they are at greater risk of accidents. In contrast, pilots only drive their cars from the airport home, and often vice versa. Police, paramedics, and underwriters are also more cautious and their insurance price goes down.
