Motor Insurance Premium - How it is Calculated
Motor insurance premium quotes are valid only for a certain period of time like a week, two weeks, 30 days or 60 days.
This is because insurance companies usually revise and review their motor insurance premium calculations based on previous and current statistics on the claims within their company and statistics from the industry as a whole.
If you want to get the best deal for your motor insurance premium, then you should do an annual review of your insurance premium.
This way you can get an idea of which companies are offering the lowest prices when in comes to car insurance.
Premiums are arrived at by considering two main factors: the driver's demographics and the car's profile.
The driver's profile includes:
While popular car models often draw more competition among different insurers.
Its body type - saloons and sedans usually have lower premiums attached to it than SUVs and other less common body types.
Engine capacity and type - Bigger capacity engines often equate to higher insurance premiums.
Other stuff like the year the car was made and registered, whether or not the car was parallel imported, off-peak or is CNG/BI-FUEL types.
Motor insurance premium payments may be greatly reduced if you know the factors that affect its price.
While it is your duty to make sure that you honestly provide details with your coverage, knowing what factors can help you can ensure that you do not miss a thing when it comes to car insurance [http://www.
carinsurancesingapore.
com/articles//tag/online-car-insurance-quotes/].
This is because insurance companies usually revise and review their motor insurance premium calculations based on previous and current statistics on the claims within their company and statistics from the industry as a whole.
If you want to get the best deal for your motor insurance premium, then you should do an annual review of your insurance premium.
This way you can get an idea of which companies are offering the lowest prices when in comes to car insurance.
Premiums are arrived at by considering two main factors: the driver's demographics and the car's profile.
The driver's profile includes:
- Age The older the driver is, the lower the premiums are going to be.
While those who are considered young are denied insurance coverage or may be accepted with high premiums.
- Marital Status and Gender Females enjoy higher discounts than most males.
- Driving experience The more experience you have in driving, the lower your premiums will be.
- Occupation typeTher are jobs that insurance companies will refuse to cover or charge higher premiums for.
- No Claim Discount You also get a 10% discount on insurance for every year that you do not file any claims.
This is true until the 5th year.
- 3-year or 2-year claim history This would affect your premiums negatively, depending on how often you filed claims and how much they were for in the past two to three years.
- Discount for certificate of merit For those drivers that have an NCD above 20%, insurers can opt to give a 5% discount called a safe driver's discount.
While popular car models often draw more competition among different insurers.
Its body type - saloons and sedans usually have lower premiums attached to it than SUVs and other less common body types.
Engine capacity and type - Bigger capacity engines often equate to higher insurance premiums.
Other stuff like the year the car was made and registered, whether or not the car was parallel imported, off-peak or is CNG/BI-FUEL types.
Motor insurance premium payments may be greatly reduced if you know the factors that affect its price.
While it is your duty to make sure that you honestly provide details with your coverage, knowing what factors can help you can ensure that you do not miss a thing when it comes to car insurance [http://www.
carinsurancesingapore.
com/articles//tag/online-car-insurance-quotes/].
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