Cheap Auto Insurance – Reading Between the Lines
Most auto insurances are regulated by group cluster rating that the insuring body issues and this can determine how inexpensive cheap auto insurance would actually be. The factors that determine the group ratings are:
– The present market value of the vehicle
– The cost of the spare parts that go into the vehicle
– Availability of the spare parts
– Specifications of the engine and its performance
– Safety and security features fitted in the vehicle by the manufacturer
– Insurance history of the specific model of the vehicle
Cars that fall under the low category cluster based on the above points cost less in premium.
Insurance companies insist that the insured fix the vehicle with more than the standard security features like safety alarms and engine immobilizers. This definitely lessens the premium allowing for cheap auto insurance. In fact expensive cars may even need to be fitted with satellite tracking system. Whatever security measures are taken, they should be installed only by professionals who will also issue a certificate that you would need to produce to the insurance company to authenticate your claim
The insurance applicant occupation can also considerably raise or lower the premium for example sportsmen like golfers tend to carry gadgets in their vehicles which potentially increases the risk of mishaps and accidents. On the other hand a teacher or lecturer will carry less hazardous material and the premium will be calculated accordingly.
The car parking details as well as the applicant’s registered address are also of great importance to the insurance companies as this defines the risk of theft, burglary, or vandalism. After all, certain neighborhoods are more dangerous than others, and where you live may affect the premiums you end up paying. Moreover, any change in address should be notified immediately and some companies may insist on asking where the car is parked especially at nights. The premium will then be calculated considering all the factors and potential risks.
Carla Kaplan is a writer and researcher on cheap auto insurance online. Save time and money by getting FREE in-depth information, helpful tips, or a comprehensive quote here: BestCheapAutoInsurance.Com
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