Factors that Impact the Cost of Auto Insurance Policy
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Thursday September 08, 2016,
2 min Read
Below are the factors that impact the cost motor insurance:
Deductible is an amount of money which a customer pays out of the pocket when he/she gets an accident. Higher the deductible results in lower the insurance cost.
Policyholders with younger age have higher insurance rates.
As the health issues happen more to the females, so they have high insurance cost than males.
People have to pay more if they are living in high crime area in comparison to the people living in low crime area.
• Moving Violation:
Uncontrollable fast driving speed and other violations create negative impact on the insurance cost. Follow the driving rules to keep the cost of the insurance lower.
• Vehicle Choice:
Insurance cost for sports cars can cost more than sedans and other cars. So, customers have to look into the cost of insurance before purchasing it.
• Driving Habits:
Miles average of driving the vehicle also plays a role in determining the cost of the insurance.
• Theft Deterrent Systems:
Systems such as alarm on the vehicle help in low the cost of insurance.
• Safety Devices:
Such as Air-bags, anti-lock brakes etc.
• Accident Prevention Training:
Insurers offer this discount, if the policyholder or driver has driving educational training.
• Multiple Policies Plan:
If a customer has number of policies, insurers offer discount in such case.
• Payment Option:
Some of the Insurers offer discount if the customers pay the bill at one time instead of paying in instalments.