Things To Focus On When Comparing Motor Vehicle Insurance Quotations

Published: 12th April 2013
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The market for vehicle insurance, especially when it comes to short term protection, is incredibly competitive. Naturally, there's a wide range of different kinds of automobile insurance policies around due to this fact. Moreover, automobile insurance providers are at this moment offering customized car insurance to appeal to certain niches of customer in order to acquire a portion of this competitive market.

Car insurance companies are functioning in a very unpredictable market as insurance contracts are by nature short-term. Consequently, the primary issue to them is to keep customers and build up a loyal member list, thereby protecting cash flows and profits. It is in this regard, that a majority of of them will offer some rewards to retain their customers. These offers are mainly centred along no claim bonuses by means of rebates offered after a set time period of no claims on your policy - usually 3 years. Given that the actual cost of these policies to their customers are the main reasons behind them shopping about to find the best price, either on entering an agreement or at the end thereof, actual premiums are also pretty competitive. The catch is often in the fine print of a contract, so premium comparisons and incentives available are important to the customer, but as important is to read the fine print. It is in the terms and conditions that hidden costs are contained - such as excess payments on any claim made. These payments vary wildly from insurer to insurer and could be rather significant.

Something to think about, however, is that monthly installments are affected by the size of the excess payment. The larger the excess payment, the lesser (normally) the monthly premium. Who may drive the vehicle, what age they are and whether the motor vehicle is used for business purposes, are all elements that could have an affect on the monthly premium and excess payment. Clearly the kind of vehicle you drive, the model, the year of manufacture and whether the car has been modified are important issues, and affect the monthly premium charged. How and where the car is stored also has an effect on monthly premiums. Take note that should you skip a premium payment, the policy will cease to have an effect, and you will be left without any insurance protection and your credit record may also suffer as a result.

Car insurance companies calculate their policies on such issues as the vehicle you drive, its value (you can insure for replacement value or market related value),where you live, whether the car is housed in a closed garage area, your actual age, driving experience, whether you use your car for business travel and so on. These are all risks to the insurer and the greater the risk the higher the premium and often the required excess payment by the claimant will probably be. Car insurance companies will often be prescriptive on the repair of any accident damage in that they will nominate who may fix your car.

The important issue is to research the market for the best costs, but also to study the fine print in making sure that not only you get the hottest deal, but that you understand the risk issues from your side. It is one thing to pay as little as possible on the monthly premium but to be bitten in the bum on the excess payments applicable to your policy.

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