Whether you like it or not, you need car insurance to drive your car.<\/p>\n
Think of insurance like fuel, just like you cannot drive your car without fuel, you cannot drive it without an insurance policy.<\/p>\n
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A car insurance policy is your safety shield against the unexpected expenses that come your way while on the road such as liability due to the accident, stolen car parts, or a broken part. It helps you pay for the repair bills, replacement bills and medical bills of the third party and your own depending on the type of coverage you have.<\/p>\n
That being said, insurance is still an expense for the drivers that they need to bear monthly or yearly. Most of the drivers are enthusiastic to save money on their insurance policy but are not aware of how to calculate their car insurance.<\/p>\n
The three major components in a car insurance policy are your profile, your overall driving performance, and your expected level of coverage.<\/p>\n
Here is a guide to let you sail through your car insurance<\/a> woes smooth.<\/p>\n As mentioned earlier, your car insurance premium is calculated based on the three factors.<\/p>\n 1-\u00a0\u00a0\u00a0 Your Profile <\/strong><\/p>\n To calculate car insurance premium, your profile includes things such as your age, area of living, gender, and marital status. Insurers use all these factors as the indicators of the likelihood of having a claim. Things such as age and gender when considered on the broader scope of high-risk and low-risk driving can determine the probability of getting into the accident.<\/p>\n So, you will need to provide your name, date of birth, gender and marital status to help insurers build up your profile.<\/p>\n Along with this, you also need to provide the details of the vehicle that you want to insure. The details include its make, model, or registration number, its ownership, modifications if any, car\u2019s security system, and where the car is parked.<\/p>\n In the \u2018get quote\u2019 form, most of this information can be filled with checkboxes.<\/p>\n 2-\u00a0\u00a0\u00a0 Your Driving Performance<\/strong><\/p>\n <\/p>\n The next thing that you need to calculate your insurance premium is to present your driving performance. The insurance companies determine your driving performance through factors such as your claim history, the number of miles that you drive, your criminal record, and no-claim bonuses. All these factors combine to tell what kind of driver you are.<\/p>\n The drivers with a long record of claims are usually considered high-risk drivers with more chances of accidents. At the same time, the no-claim bonus shows that you have been a good driver and are eligible for special discounts.<\/p>\n 3-\u00a0\u00a0\u00a0 Your Expected Coverage<\/strong><\/p>\n The expected coverage makes the third block in your insurance pyramid.<\/p>\n The general rule of thumb is that the more coverage you need, the higher will be the premium and the lesser coverage you need, and the lower will be the premium. So, if you just need the absolute minimum insurance that only qualifies you to drive the car legally, you can expect a small premium. But, if you are looking for something all-inclusive to enjoy peace of mind everywhere in every weather, you should make up your mind to pay a higher amount.<\/p>\n Your insurance is what your insurance is and you gotta pay what you gotta pay. Right?<\/p>\nHow to calculate car insurance premium?<\/h2>\n
How to calculate car insurance rates with lower premium?<\/h2>\n