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Some call it motor insurance; others know it as vehicle insurance while others are comfortable with auto insurance. Whatever terminology you choose, it all boils down to the fact that you need insurance coverage for your vehicle. This type of insurance policy covers trucks, public service vehicles, personal vehicles and any other vehicle using roads. As a prerequisite to registration, traffic laws in most countries stipulates that persons should apply for car insurance cover before using or driving their vehicles in public roads lest they attract a ticket.
Since you do not know when a road accident may occur, you will have all the benefits by taking a car insurance way in advance to cushion you in case the accident happens. You will realize that taking comprehensive car insurance package is important. With this package, you will be covered against a host of risks like fire, crash damages as well as theft. This however implies that the premiums paid on the cover are commensurate with the benefits you will derive from taking the cover. This brings out the need and urgency to make the premium lighter as discussed below.
How To Make The Insurance Premiums Lighter
Most car users find themselves paying high insurance premiums rates, a factor that reduces the joy associated with driving their cars. You do not need to have this to be the case always. Here are a number of things you can do to make the insurance premiums lighter.
• Taking a Comprehensive Car Insurance Cover
As already been explained above, you can make the insurance premiums lighter by taking a comprehensive cover from a trusted insurance company. Under this package, you can benefit from low premiums while enjoying coverage on theft, loss, crash damages and fire as opposed to paying for individual coverage of these risks. You will however need to undertake some research to find insurance companies with the most competitive price.
• Low cost vehicles and Vehicle Parts
You will realize that most expensive vehicles attract expensive insurance coverage compared to cheaper ones. As much as one enjoys the social status that comes with driving expensive machines, there are some costs one should be willing to bear, car insurance being one of them. This also applies to vehicles whose spare parts you cannot find easily. It therefore follows that you can lighten your insurance premiums by choosing to buy less expensive vehicle and that the vehicle parts can readily be found.
• Perception of Insurance Risk
As you will realize, the amount of insurance premiums to be paid will depend highly on the perception of risk by the insurance company. This is coupled by other factors like the chosen insurer and the level of coverage. It therefore follows that reducing the perception of risk to be insured against, will influence the amount of premiums you will pay. There are several ways in which you can do this and one of them is making sure that your car is not flashy. Flashy autos are liable to attract vandals. You can also install state of the art braking system and alarm systems for safety and make sure that your insurance agent knows about them. Demand a discount!
- Usage-based Insurance
Note that while there are the standard insurance rates, you can find out what you can do to pay lesser premiums. In Kenya, a new auto insurance product has come into the market, where you pay a usage-based rate. If you are not driving, why should you continue paying insurance for the car? What is you are out of the country for half the year? You can find this revolutionary product from Gateway Insurance Company.
How Car Insurance Premiums Are Calculated
The actuaries will decide the premiums you will pay for your car based on the assessed risk. Many insurance companies will look at many variables that will relate to the risk against which a vehicle is insured. Additionally, the actuaries will make adjustments for bonuses before they roll the premium you should pay. High experience in this section is pertinent in calculation of the final premiums.