Is Car Insurance Calculated the Same the World Over?

UK drivers have enjoyed some reductions in their car insurance premiums over the past few months, which has been caused by new gender neutral policies, as well as by ongoing competition within the insurance sector. However, there can be some significant differences between car insurance policies around the world, which are often the result of varying regulations and levels of risk. How car insurance policies and premiums are calculated are also determined by local circumstances for drivers.

In the UK, the average cost of car insurance is currently around £1,100, although this can vary quite considerably once age and location are factored in. Younger drivers still tend to pay a lot more than older drivers, while those over the age of 55 can also suffer from increasing premiums. Decisions are made on insurance calculations from your past driving history, the kind of car you drive, and whether you’re doing everything you can to keep a car safe.

The level of risk attributed to a car insurance policy can rise and fall depending on different countries and their general insurance policies. In the United States, for example, the cost of insurance is different from state to state, and can be as high as $2,500 on average in Michigan, through to $995 in Vermont. Michigan also issues driver responsibility fees, and has a high proportion of uninsured drivers, which pushes up premiums.

The cost of car insurance can also be considerably different in countries where third party liability insurance is not mandatory; this is the case in South Africa and New Zealand, where the larger number of people without any form of insurance means that some individual policies can end up being large. Other factors that can affect insurance premium calculations can include limits of no claims discounts, which in France can be a maximum of 50 per cent of the policy’s value.

There are ongoing efforts, however, to standardise insurance costs and calculations. The EU Motor Directive of 2009 imposes rules over third party insurance across European member states, as well as practices for compensation and minimum claims. How rates and premiums are calculated still comes down to individual insurers, though, who can choose to be stricter or more lenient depending on their target market. Specialist insurers can be more relaxed, for example, about providing reasonable cover for kit cars or to drivers with spent criminal convictions.

Similar rules apply in Asia, where car insurance can range from the competitive policies and specialist rates of an insurer like Direct Asia in Thailand, through to China’s combination of nationalised and private insurance. Average calculations and the level of risk calculated across different drivers can consequently be affected by how much of a stake governments have in keeping insurance rates low, and the competitiveness of individual companies to offer low rates to customers.

Author Bio

Paul Taylor is a freelance blogger covering car insurance from around the world. He recommends that drivers check out www.directasia.th for more information on low cost insurance. When not looking for deals, Paul enjoys camping tours and caving.

Five Surprising Things That Can Cause Insurance to Rise

Insurance premiums are at an all-time high, especially for vehicles, so here are a few causes that aren't always considered by consumers that might be increasing the cost, without your knowledge. These are applicable for everyone, whether you are looking for regular car insurance, right through to business van insurance.

Turning 50

Believe it or not it’s not only youngsters that get penalized for stereotypes surrounding their age. Statistically, people in the 50 plus age bracket are more likely to have road accidents than other demographics, so premiums are totted up accordingly. Shop around to ensure you’re not paying over the odds for your age; some companies will price match, so speak up and ask your provider if that’s a possibility. 

Credit rating

Most insurance companies will run some form of background check before agreeing to offer you cover and your credit rating is often the first of these. If you happen to have any missed mortgage repayments, credit card charges, or broken payment contracts, then the cost of your insurance is probably going to suffer as a result. This should be a consideration when deliberating whether to apply for another new credit card.

Vehicles power

This is where companies are really making their money. If you happen to own a farm and drive a vehicle suitable for use on that farm, such as a high powered four by four, your insurance will rocket, even though technically you need such a vehicle. You will also find that may insurance providers will not cover this type of vehicle. Where possible, be sensible with what you ‘need’, rather than what you want and be assured you will pay a sensible price.

Security

Security may seem obvious, but it isn't considered by many motorists and it is a hugely influential factor. This includes where you park your vehicle when at work and home, as well as whether it has an alarm. If you go all out with security measures as well as storage (even if that means hiring garage space), you will probably find there is a drop in your annual insurance fee. 

Payment method

Most insurance providers reward customers that pay annually rather than monthly, so it’s always worth asking for a price for a year as well as the price for monthly installments when inquiring. Save bits and bobs of cash where possible throughout the year, to make this one off payment less of a shock.

Role Of A Car Insurance And How To Minimize The Payments

Everyone knows that you are an expert driver. You drive cars smoothly without any trouble. You have driven on every street of the town and never had any trouble. You have managed to survive even on close encounters, so it’s proven that you are an experienced driver. As you are a role model to others when it comes to driving cars safely, you might think that you don't need any car insurance. Saved money can be utilized towards a useful cause. Isn't it?

Why you need insurance?

The fact is no one wants to get in an accident but disasters happen every day. Each year millions of accidents take place throughout the globe. So it is a wise idea to have vehicle insurance. If unfortunately any accident happens then your insurance will cover your vehicle damages and medical expense. Everyone inside the car will be covered. You will save lots of money. 

Benefits of car insurance:

There are many benefits of car insurance. Car insurance can protect your vehicle from natural calamities like, earthquake, hurricane, cyclone and from any man-made disaster. Sometime car cover can be so confusing to understand. Buyers should choose policy under the guidelines of the place they reside.

If your car is an investment then insurance protects the investment from lots of hazard factors. Auto covers are not just about your car, they are much more. Insurance can save you from paying large medical bills. Many car insurances are designed to give you full cover you need. During accident emergencies, car insurance can provide you cash that you need safeguarding your valuable belongings such as home and retirement funds and others.

When an accident happens, many tend to take quick loans from private companies at high interest rate to cover up the losses. If you have insurance then you don’t have to worry about anything as your insurance company will take care of everything you required after the accident to return into same status as you were before. 

Car insurance hunting:

There are endless insurance companies offering vehicle coverage. You can contact any one and have your car covered. Before you shop insurance for your car, you need to keep some points in your mind to minimize the cost. Only buy the insurance that is needed. For instance if you already have medical coverage then taking car insurance that covers medical bill is useless. 

Reduce your payments:

If you want to reduce car cover payments further then don’t go for car insurance that covers towing. Towing can be made easier at cheaper rate. Keep the deductible high to reduce payments. You can also avoid minor claims to reduce the payments.

Finally your driving record can reduce the payments further. People who have clean driving record or drive occasionally get rebates from the insurance company on their payments. You can negotiate with the company to minimize the insurance payments.

If you are searching for car insurance then you can delve into the online recourses. There are many online companies offering reliable vehicle insurances. Make sure that you understand each and everything before signing up with an insurance company to minimize your insurance payments.

Author Bio:Austin Richard Is an I.T professional from pass certification. He is 9L0-412 certified. He is now getting prepared for 9L0-518 exam. He likes to write about Business, and Technology.

The Insurance Costs of Senior Driving

Research has shown that older drivers may have memory problems, slower reflexes and impaired vision, factors that increase the risk of having an automobile accident. Whilst drivers over the age of 25 generally enjoy lower rates, drivers over the age of 70 are often considered "high risk" by insurance companies because of the assumption of more accident risk. 

If you're a mature driver, you've probably already dealt with the frustration of car insurance. Your premiums may have risen already or your insurer may have dropped you entirely. You don't have to give up driving completely just because of expensive insurance, however. If you shop around and do a little legwork, you can make your insurance affordable again.

Think "Safe"

Insurers will give you a lower rate if you have a newer car with a high safety rating with safety devices installed, such as anti-theft devices. You'll also receive discounts for completely senior driving safety classes. Check with your insurer or the companies you're considering for a full list of ways to get discounts on your senior policy.

If you have an older vehicle, consider your current coverage levels. You may not need comprehensive coverage on a vehicle with a low replacement value and states that mandate car insurance usually only require liability coverage. Liability coverage is less than a fully comprehensive policy and will protect you from some or all personal liability claims in the event of an accident. 

Drive Less

If you're not driving every day and can cut your driving down further, you may be eligible for a limited driving discount or limited policy. The limited miles policy will cost you less than a standard policy. This option will not work for senior drivers who still use their car frequently, as violating the limited miles amount will cost you.

If your spouse is on your current policy with you but has a poor driving record, you may want to consider becoming the sole driver in the household. Seniors with past accidents will have higher premiums and a harder time getting coverage than seniors with good driving histories. The driving record of covered drivers on your policy is a factor in your rates, even if you're the main policyholder. 

Compare

Auto insurers offer different types of products and coverage prices to senior drivers. Contact each insurer in your area for a quote on their rates for senior drivers. Compare quotes by premium amount and coverage level to decide which policy will meet your needs at the lowest rate. Be honest about your driving record to ensure you're getting accurate rates to compare.

Some insurers have quote forms available online, but you may have to give out some personal information. If you're uncomfortable giving out the information on the Internet, contact the insurer by phone to receive an accurate quote. Don't sign any policy paperwork or make any payments until you've reviewed the policy in full and confirmed the coverage levels and premium amount. You can find more tips on how to control your motor spending at www.CarFinance247.co.uk.