| When shopping for a feasible car insurance premium, you have to bear in mind that it will vary from policy to policy and company to company. The sort of premium you will expect to pay is dependent on certain crucial factors like your age and gender, the value of your car, car engine size and your driving history.
- Age: Young drivers (and beginners) are more likely to be involved in an accident; therefore they have to pay a higher car insurance premium.
- Gender: Some statistics have shown that women are more cautious while driving so they are offered inexpensive premiums.
- Group of insurance: Insurance companies usually assign a group ranking to a car based on the level of potential risk associated with each car model and group.
- Cost of vehicle: The more expensive your car, the higher your insurance premium will be.
- Size of engine: If your car is high performance, it is more liable to be involved in a powerful accident. This can lead to possible severe damages and, as a result, expensive repair costs. Thus, the car owner will have to pay a higher premium to the car insurance provider.
- Your job: The less you commute via your car to your workplace, the less insurance you will have to pay. If you drive only in the evenings and for a shorter distance, your insurance will be much cheaper.
- Your residence: Where you live is one of the determining factors for payment of premiums. If you live in an area where there is a high crime rate, your vehicle is more likely to fall prey to stealing or car jacking. If your house is located near a high traffic road, your car is likely to be hit by another vehicle.
- Your driving history: If you are accident-prone, your car insurance provider will require you to pay a high car insurance premium.
Based on these factors, you can negotiate premiums for two types of commonly available car policies: full comprehensive and third party.
Full Comprehensive Car Insurance
If your car is expensive and fitted with a powerful engine, it is best that you go for full comprehensive car insurance. Although its premium is expensive, the coverage includes injuries to you and any passengers, damages to the exterior and interior of the car and any missing personal effects.
Third Party Insurance
The premium for third party insurance is feasible for owners of second hand or cheap cars. This insurance is the minimum legal requirement per RTA of 1988. It comprises of damages to a property or another car and injuries to the passengers and excludes any personal injuries. Third party coverage is cheaper than full comprehensive car coverage.
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