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[I55]I Need Car Insurance

by Rick Dupont, Ric

Knowing that you are an expert driver you want to think that you can now get by without insurance. Just think of the money you could save if you put that car insurance money towards a worthwhile cause. You could go on holidays to a more exotic location for example. You know that most of the other people on the road are insured and if they hit you then their insurance will cover you.

BUT WHAT IF!

That's right as with any major decisions about financial things , there is something that must always be kept in mind when deciding if car insurance is really needed.

1. What Happens if the person that smashes into you, does not have insurance

2. What happens if on the off chance you actually make a mistake.

The fact is as soon as you get rid of your car insurance, you will most probably have an accident, this is just the way nature works and you can bet that , it will be your fault.

I'll tell you a little story, many years ago after 10 years of driving and not having had an accident I decided not to renew my insurance. I thought I am a perfect driver and very safe, don't speed , obey all the rules, so it is just plain common sense to save that insurance money for a better car.

We'll about 2 weeks after my policy lapsed I was cruising down a highway and took a wide sloping corner and you guessed it, parked in the middle of the highway doing a turn was a late model Toyota Celica. I slammed straight into the back of that car doing 2000 dollars damage to my car and 3000 dollars damage to his car. Fortunately it wasn't a BMW or a Ferrari but still $5000 hard earned bucks, fortunately the other person was quiet understanding and allowed me to pay of the bill and because both cars were drivable we didn't get the police involved although the accident was reported.

Now having experienced the Impossible, I can say with some authority that Insurance is an ugly necessity, even if just for some back of mind confidence. I hope when you ask yourself Is Car Insurance really needed, that you remember my brief story and have a long hard think.

After saying all that, one thing to remember shop around and make sure that you have the best possible insurance rates as this is one sure way of saving money the sensible way. There are some great sites on the internet for your information, a quick search of google and yellow pages will provide a long list. Don't be afraid to call as many as you can and Interview them if you will, while this is time consuming, I believe the resultant insurance decrease will be directly related to the effort you put in researching this most important subject.

Car insurance is a protection for you, third parties and your car. Each car policy is assessed individually by reviewing statistics whilst taking into consideration underwriting criteria which consists of a series of factors, the major ones being area, age, gender and driving. Car insurance premiums are determined by a series of rating factors. When these rating factors are calculated, an underwriter can tailor an insurance policy to suit the needs of the individual.

Insurers view the vehicle owner and the vehicle as a risk. The premium that the insurer will quote to you will be a reflection of the amount of risk you oppose to the insurer.

The insurance companies have Underwriters (the people who assess the risks and develop the policy based on the facts provided). The Underwriters are responsible for ensuring that the level of risk that is retained by the insurance company will be profitable to them. For example, if an Underwriter rates an insurance policy too cheap, the amount that they may pay out in claims may outweigh the amount that they have collected in premiums and therefore a loss would be incurred by the insurance company. Thus, it is important for the Underwriter to evaluate and develop a policy that will be primarily be beneficial to the company, whilst still being competitive to the policy holder.

Underwriters have access to a wealth of statistics. Each statistic provides the underwriter with an important rating factor in calculating premiums.

The main rating factors an underwriter will look at are:

• Area
• Age
• Gender
• Driving history

The areas play an important aspect in the risk assessment for a car insurance premium quote. Typically, insurance premiums are higher for residents within inner cities opposed to those who live in suburban or rural areas.

Crime rates are statistically higher in inner cities and the density of people within the area is greater. The increased density presents a grater risk for the Underwriters as more thefts, vandalisms and accidents occur within these increasingly dense areas. Therefore, the likelihood of an insurer having to payout a claim on an insurance policy is higher in denser areas compared with suburban or rural areas.

Age
Young drivers are viewed as a higher risk as statistically; they have more claims than mature drivers.

The age ranges for insurance policies are usually determined in the following age bands.
• 17-20
• 21-25
• 25 and over.

Insurers are more likely to pay out claims in the 17-20 age band than they would in the 21-25 age band. Lesser in the 25 and over age band. People aged over 70 may experience a rise in premiums as the claims in this age bracket increase possibly due to changes in reaction speed or health issues.

Gender
Women are seen as a lower risk than men statistically due to men driving more than women. As a result, men have a higher exposure on the roads and therefore a greater chance of road traffic accidents. Additionally, women are also statistically considered to be more cautious drivers.

Driving history.
The driving history also plays an important part in rating a risk. The more experienced the driver in terms of the driving years, the lower the premium they would attract compared to novice drivers.

Article Source : Proof Of Auto Insurance

About Author

Both Rick Dupont & Kev Taylor are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Rick Dupont has sinced written about articles on various topics from Golf Guide, Your Online Business and Business Cards. Rick Dupont writes for Make you rich a website dedicated to information on and all manner of money making and saving ideas visit. Rick Dupont's top article generates over 8100 views. to your Favourites.

Kev Taylor has sinced written about articles on various topics from Auto Insurance, Home Management and Finances. MotorQuoteDirect is a leading provider in motor insurance for vehicle owners across the United Kingdom. For more information on the different insurance policies available, visit them at. Kev Taylor's top article generates over 6600 views. to your Favourites.