Know How Your Motor Insurance Companies Charge You

Most people think that by getting a lot of quotes from various motor insurance companies and comparing them, they could get the best deal possible. While this may be true, you should try and find out how different motor insurance companies charge for your premium, this way you can drive your insurance premiums even lower.

You can get a lower motor insurance premium by influencing how the important factors that influences your car insurance premium costs.

Insurance companies determine your premium by looking at the risks they have to shoulder to cover you. In Singapore, there are difference factors that are being considered by insurance companies, but the majority take the following into strict consideration:

- The vehicle's make and model.

- The vehicle's age and engine capacity

- What you use the vehicle for (if it is for private, corporate, commercial or personal use).

- The driver's personal demographics like age, occupation and gender.

- The driver's driving experience (in years).

- The driver's claims history

- The cover you want (comprehensive cover, third party liability, among others).

Every insurance company will have a different risk factor assigned to each of these considerations. These risk factors are determined by the insurance company's past claims information and other pertinent statistics.

Admittedly, some of the factors may be hard to change like the type of cover you want or the nature by which you use your cars. But this information can, for instance, help you choose a more insurance-friendly car when buying one. Instead of a gas-guzzling sports car, you may be better off with a family sedan or something that insurance companies deem safer.

Some families might also choose to have their insurance under another driver within the same family. They usually assign somebody who has more driving experience or is older. If you plan to go down this option, this might also help in getting more savings from your premiums. Female drivers carry less risk than male drivers, and also married drivers and drivers who are older. All of these are based on statistics. So your mom might be the best bet you have to get you the best deal from motor insurance companies as a low risk driver.

[Source: http://ezinearticles.com/?Know-How-Your-Motor-Insurance-Companies-Charge-You&id=3991480]