Many companies claim to be able to help you slash your car insurance cost by as much as 40%. This means if your car insurance premiums in this year is $1,000, you can save as much as $400.
But is this really credible, and can this even be achieved? This article seeks to find out more about these claims…
The 2 points below sums up our findings, and were gathered with consideration to how insurance companies price their policies. Major factors that contribute to motor insurance pricing include:
- Vehicle details: Make and Model of Vehicle, Engine Capacity & Vehicle Age
- Driver Details: Age, Sex, Martial Status, Driving Experience and Occupation of Driver
- Insurance Details: Amount & nature of claims in the past 3 years
- Type of Cover (Third Party Only, Third Party Fire & Theft or Comprehensive)
1. You can reduce your car insurance premiums by 15% if you choose to drop the optional riders.
Each rider cost you between 3-10% of your auto insurance premiums. Thus if you opt out of the unnecessary frills, you can easily save up to 15% of your car insurance premiums.
2. You can save as much as 30% of your premiums if you compare quotes with at least 12 insurers.
This happens because insurance companies have different business guidelines. They price insurance premiums of each vehicle model differently.
A point system is used to determine if a particular car is of higher risk…or not. Car models with higher points attract more premiums. The points are awarded based on the claims made by the existing client base. (more…)