Factors affecting the insurance rate of your car

The insurance rates that insurers charge on car owners are determined by several factors. These rates are results of a widely accepted computation that involve risks and the probability of accidents to happen. Some factors affecting the insurance rates are the following:

car insurance rate

1. Insurance coverage

The number of coverage that the insurance handles affects the rates paid by car owners. A single coverage insurance holder pays less compare to those with multiple coverage insurance. This is because an individual coverage has its own rate. These rates are added-up when a car owner agrees to purchase an insurance deal made up of two or more coverage.

Despite the higher premiums paid, multiple insurance is advisable since it is more flexible and covers different liabilities. For example, a multiple coverage insurance covers the expenses on the personal injury, own damage and collision while a single coverage insurance only covers the collision expenses. In the event of accident, a multiple coverage insurance holder pays less to the damages compared to the single coverage holder since the larger part of the expenses incurred during the accident are handled by the insurer.

2. The type of vehicle
The type of vehicle that car owners possess is also another factor that affects the insurance rate. Luxury vehicles and fast cars involve higher insurance rate since these are high risks vehicles. Lower insurance premiums are prevalent on ordinary cars and SUVs.

3. The car

About Marty Bay

Marty Bay is the Lead Writer and Editor for VPM Automotive. He has researched and reviewed 100s of cars, and writes extensively about car technologies.
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