What Calculates The Car Insurance Premiums?

For most people, their car or vehicle is an essential item and a significant investment. Many people depend on their car to earn their income and many families consider a car essential for keeping their family moving. The loss of the family car in the event of an accident, damage or theft can severely inconvenience individuals and families. This is why a good, comprehensive car insurance policy is considered very desirable, if not essential. 

Car insurance premiums are calculated based on the characteristics of both the vehicle and the driver. Each policy is generally individual and tailored. The types of factors that can be included in consideration are the ability and age of the driver, the type of vehicle, where and how the vehicle will be parked and secured, the type of insurance being sought and the amount the vehicle will be driven. There are further characteristics of individuals which are considered and can result in the premiums being adjusted for car insurance for high risks. These characteristics can include a poor driving record, particularly a history of disqualification for dangerous or drunk driving, inexperienced drivers, bad credit risks, a high number of previous vehicle accidents, and even a history of higher excesses with previous insurance policies. These factors result in higher premiums for car insurance for high risks.

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