Daily BulletinHoliday Centre

Insurance

  • Written by News Company


Picking out the best car insurance for your needs can be overwhelming, especially when it is the first time you are doing it! Not only are there many different companies to choose from, there are also different levels of insurance such as liability and full coverage, as well as different prices for each level depending on the company you decide to go with.

It may leave you wondering what the difference is when it looks like you're getting all the same things for such a wide range in estimates. Make sure to read this list to help give a better understanding on what to consider before going out and purchasing auto insurance.

How do companies determine your insurance rates?

The first step to determine what your rate will be is known as underwriting. This is done to determine what the risk is with the applicant and it is used to decide whether the company will insure you or not. Second, if the company decides that they will accept the application, they move onto the second step which is rating. This will give a specific price on what is believed the cost will be for the financial responsibility for a possible claim.

What factors affect your overall insurance rates?

Driving record: Previous violations or accidents on a past driving record places the individual as high risk, creating a higher insurance payment.

Geographic territory: Typically, an urban area will have a higher claim than a rural area.

Gender: males tend to have more accidents than females, causing them to have a higher rate.

Age: Different age groups tend to be viewed as higher risk, such as under 25 years old.

Marital status: Those who are married tend to have lower rates of claims.

Prior coverage: Insurance companies check to see if in the past you have been dropped due to not paying your insurance premium.

How often the vehicle is used: Driving the vehicle more frequently puts you at a higher risk of accidents and/or violations.

Make, model and year of the vehicle: Newer as well as luxury vehicles are more expensive to insure. A brand new car right off the lot will almost always be more expensive to insure than a second hand car that you bought already used.

Shop around for different companies before you settle on one

Make sure to give every potential company the same information so that the quotes are as reliable as possible. Also make sure to get a detailed list on what is covered under the quote that they give you to compare with the other companies you are looking into.

Where to look for insurance companies

Of course looking online and looking at the reviews for each company and each agent online can be beneficial, but also be sure to check around with family and friends to see who they use or have used in the past. They will be able to tell you about anyone they think you should avoid or look into based off of their specific experiences with them.

Check for any possible discounts

There are some discounts that companies will offer because they see you as a better risk, or lower risk. Potential discounts are for good students, good drivers, multiple vehicles, a package for auto and home, low mileage on the vehicle, anti-theft systems and more. Check with companies that you are interested in to see what discounts they may have.

Read the policy very carefully

An insurance policy is a legal contract and is written so that all parties' rights and responsibilities are stated clearly. Make sure to read the policy thoroughly so you understand all of the contents in the policy. Make sure to contact your specific agent if something is unclear or you need clarification on anything to make sure that there are no questions. You also have the option to sit down with your specific agent and go over the policy line for line with them. You can then take notes and ask about any questions immediately if you have any.

Conclusion

While shopping for insurance can be overwhelming, looking at these six tips can help to make the process a little bit easier and give you a little bit more knowledge going into it. Hopefully it can save you some time, such as reaching out to family and friends to see if there is anyone they recommend to avoid so you don't waste time talking and getting quotes from them. Insurance is required to drive a vehicle, but don't rush the process and sign up with just anyone.

INTERWEBS DIGITAL AGENCY

The Conversation

Politics

Scott Morrison on Credlin

PETA CREDLIN: Thank you for your time tonight, PM I know you've got a lot on your plate. I'll get to the issue of bushfires in just a moment, but I can't let it go unremarked that with Australia Day...

Peta Credlin - avatar Peta Credlin

Scott Morrison interview with Ray Hadley

RAY HADLEY: Prime Minister, good morning.    PRIME MINISTER: G’day Ray.    HADLEY: Jeez you copped a hammering while I was away.   PRIME MINISTER: Goes with the job mate.    HADLEY: Well, yo...

Ray Hadley - avatar Ray Hadley

Immediate small business support for bushfire affected communities

In response to the devastating bushfires, the Morrison Government has today announced a comprehensive suite of measures to immediately support impacted small businesses.    This initial package ...

Scott Morrison - avatar Scott Morrison

Business News

2019 Hottest FinTech Startups Overview

Modern technology is experiencing rapid growth, so many industries expect a so-called revolution, and the financial world is no exception. Over the past ten years, people have witnessed the emergence ...

News Company - avatar News Company

Australians need to look out for this US Crypto-platform

Good news for Aussie sports fans as UssCyber is soon to launch its very own crypto-currency sports trading platform. UssCyber, a blockchain-oriented company based in Florida, is introducing “World S...

News Company - avatar News Company

How to Choose the Right Data Recovery Solution for your Business

In the modern business environment, data is one of the most important commodities. A typical B2C seller, for instance, offering home delivery service cannot deliver the product to the right addres...

News Company - avatar News Company

Travel

The Family Travel Handbook from Lonely Planet

Everything you need to know to take unforgettable trips with your children   Full of practical advice, ideas and inspiration for every type of family, Lonely Planet's The Family Travel Handbook ...

Adam Bennett - avatar Adam Bennett

3 Ideas for a Family-Friendly Holiday to Bali

A family holiday is always an exciting time, but it can often come with its fair share of challenges, especially when trying to keep every member of the family happy. Thankfully, the beautiful islan...

News Company - avatar News Company

The Best Things to Do in Adelaide Hills

Adelaide Hills has long been a relaxing escape for the people of Adelaide and beyond. Its proximity to the capital makes it an accessible destination that feels like you’re miles away from the hustl...

News Company - avatar News Company

ShowPo