Introduction
As the accident rates are on the rise every year on highways and motorways due to which it becomes important for people to take the shelter of insurance cover for their cars. Insurance coverage for automobiles is very necessary in order to protect consumers from damages caused by accidents. Every year countless accidents take place on highways and in the cities due to which it is almost unavoidable to take insurance coverage. There are many insurance companies who provide different plans for your vehicles. The premium of the coverage depends on the risk involved. Most of the insurance companies divide drivers in different categories such as high risk drivers, teenage drivers, senior adult drivers and drivers with good records.
- Gender and Age Affects the Coverage Rates
The rates of the coverage depend on the amount of risk involved. Normally insurer calculates the risk through above mentioned categories of drivers. Besides that gender and age does play an important role in deciding the yearly premium amount. As statistics shows that women and young girls have fewer accidents as compare to males. Almost all the surveys show that females of any age involves in less accidents as compare to the males. Similarly a teenage boy involves in more accidents as compare to a mature or senior citizen. Companies often offers lower rates for females as compare to males based on the favorable figures for women.
Details
- Type of Car
The type of vehicle is also a deciding factor when it comes to deciding insurance coverage rates. Sporty cars always have high probability of accidents than normal cars, which results in high coverage rates for sporty cars besides that another major factor which affects the coverage amount is the price of the car. Some luxurious expensive imported cars are hot targets for car snatchers and car thieves due to which insurance companies charge higher coverage rates for that type of the cars.
Features
- Color of Vehicle
The color of the vehicle is another major factor in deciding the coverage rate. Figures shows that red cars involve in more accidents as compare to any other color car, due to which some companies have higher rates of coverage for red cars. Subsequently some colors of the car have less accident rates which results in low coverage rates for those colors.
Comments
- Location of The Vehicle
The location of the car is also important in deciding the coverage rate. In cities there is huge traffic due to which the accident ratio is higher as compare to less populated areas where the load of traffic is not as much as in big cities. People lives in rural areas or in small towns pay less for their insurance coverage as compare to their relatives who live in big cities.As the accidents increased in our daily life, the insurance coverage of the cars becomes even more important than ever before. When we talk about insurance the first things comes in our minds is what it charges if we go for insurance of our newly purchased car? The coverage rate depends on many factors such as gender, age, type of the car, location of car and even color of the car.
