Finding the Cheapest Motor Insurance Quotation

Finding the Cheapest Motor Insurance Quotation

Many may find the task of sourcing for the cheapest motor insurance quotation rather troublesome and not worth the time. The whole process of getting the best motor insurance quotation such as doing research on the different claim methods of the different companies can be quite difficult.

One way to skip the hassle of all this, all one needs to do is submit all applicable and necessary information, you will be able to access the cheapest insurance quotes with maximum benefits for your automobile with the help of motor insurance comparison service.

In this article, you will learn why quotes from different insurers differ, how insurers price your car insurance policies and the contributing factors that affect the price of your motor insurance quotation.

Why Do Quotes From Insurance Companies Differ?

Most motor insurance companies charge their premiums based on a standard criteria. The only thing that differs is the benefits they offer and the time taken to receive our claim.

On top of that, different insurers have different claim experience and risk tolerance level. At times, there are some very cheap insurance quotes that offer benefits like all the other insurers, but they are not necessary the best. One thing for sure, you may take forever to claim. That’s the reason why motor insurance companies recommend cost-benefit comparison rather than the cheapest deal.

How Do The Insurers Price Your Car Insurance Policies?

Each and every insurer prices your car insurance policy different. Some insurers take into consideration certain factors whereas other insurers do not. Insurance companies price each policy according to the risk they’re undertaking to insure you. For example, it is more risky for insurers to insure a young male driver as statistics show that they cause the most number of accidents on the road. Thus, younger male drivers usually have to pay a higher price for their motor insurance.

Read on and you’ll find out the different factors that insurers used to price your motor insurance and how it affects you.

Contributing factors that affect the price of your motor insurance quotation

There are many factors that insurers will consider before putting a price to your motor insurance premium. These factors are split into 3 categories, mainly factors contributed by the driver, the characteristic of the car and the insurer.

Factors contributed by the driver

  1. Gender of driver (Male/Female)
  2. Age of driver
  3. Experience of driver (no. of years since driving license was obtained)
  4. Driving record (clean driving record will give you a cheaper motor insurance quotation)
  5. No Claim Discount (NCD) – drivers with a higher NCD will pay less for motor insurance

Factors contributed by the characteristics of the car

  1. Make and Model (saloon, MPV, sports car)
  2. Engine capacity
  3. Type of car (weekend car/normal car)

Factors contributed by insurer

  1. Risk undertaken
  2. Claim experience of the company
  3. Time taken to make claim

Now that you’ve read the entire article and learn the different factors that affect the price of your motor insurance, be sure to submit the most accurate and detailed profile of you and your car to get the best deals in town!

Last Updated On:
Thursday, June 4, 2015
Categories: Car Insurance , Money WISE