Car insurance companies take many factors into account when determining what premiums the insured will pay. Everybody does not pay the same premium. You pay a premium based on what the company assesses as the possible risk you pose. Are you a driver who is likely to file a claim? When deciding this question, insurance companies require information ranging from your driving record to your age to safety features on your car. Other information considered is how many cars are covered under the policy, the type of car insured, the amount of driving your do, and where your car is located.
Multi-Car Insurance Discounts
Multi-car cover allows you to use a single policy to cover multiple vehicles. Some providers will cover up to five vehicles under a single multi-car policy provided they are all registered to the same address – which means that an entire family could be covered under the same policy, provided they all live at the same address.
A multi-car policy is a lot like buying your insurance in bulk – because multiple people are protected by the same policy, your insurer can reward you with lower prices for that cover in the same way that energy companies will often offer you discounts on dual fuel energy bills. You are making their administration process simpler and also bringing more business to the company.
What to Know About Multiple Car Insurance Discounts
- Who is covered for what – While multi-car insurance covers multiple vehicles, not every person on the policy is covered to drive every vehicle. Make sure all drivers are covered for vehicles they need to be when setting up the policy, as changing this can affect the cost.
- No claims discount – As a rule, if one of the drivers on your policy has a claim made against them, it should only affect the involved drivers no-claims history – but make sure this is the case before applying.
- Changing vehicles – Check the details of the policy to make sure that should you change your vehicle during the life of the policy, you are able to change it with your insurer.
- Renewal dates – Some insurers will link all the renewal dates together, which can prove to be particularly expensive if paying annually. If you would prefer to keep the payments smaller, make sure that you are able to pay monthly – but be aware that you will pay more overall if you choose this option.
- Make sure that your multi-car insurance is competitively price compared to insuring the vehicles separately, and also be certain to ask the provider about extra discounts – for example parking in a garage at night, or fitting extra security to your vehicles.
Make and Model of The Vehicles
Every year vehicles receive safety ratings and are ranked according to how likely targets they are to thieves. Additionally, there are many cars that are considered to be more likely to be handled irresponsibly, or that can cause great damage to other cars. Sports cars, some SUVs, bright red cars and black cars are considered risky. Additionally, cars with higher safety ratings cost less to insure, as do cars that are low on the theft list.
Most car insurance companies ask prospective clients how far, and to where, they do most of their driving in a day. The thinking is that further you have to drive, and the more often you do it, the more likely you are to have an accident. The person who commutes 45 minutes to work every day is going to pay more than the person who drives 10 minutes to work. Likewise, a college student who walks to class, and drives home three or four times a year will cost less than the college student who spends 30 minutes commuting to and from campus each day.
Reduce Your Automobile Insurance Premiums
There are very few people who meet all of the criteria for having a perfect insurance rate. However, if you know what car insurance companies consider when setting premiums, you have a better idea of the things you can do to reduce your premiums. For the most part, being a safe and responsible driver, and taking good care of your car, will help you keep your premiums low. If your Insurance Company can’t make a deal it is time to switch to our agency which offers cheaper car insurance quotes for Single Parents and married couples as well.