Many countries oblige car owners to get auto insurance. For private car insurance companies, the premium may vary from one person to another depending on many factors. These factors help insurance companies calculate the costs of a claims that policy holders file in the future. The following are the attributes used by insurance companies to measure the car insurance premiums:
* The Age of the Driver
Because of the lack of information about young first time drivers, they generally get higher premiums and exclusive discounts. Some companies give premium deductions if the student has high grades. Many companies also offer premium deductions if the student attends classes recognized by the government. Signing an agreement on safety policies also decreases the premium for some insurance companies. Many insurance companies offer car insurance with no down payment exclusive for students.
Premiums are usually higher for drivers over 60 years old because of the increased risk related to aging. No down payment car insurance plans are also common for the elderly due to the decreased use of their cars.
* The Driver’s Road Records
Past road offences are used to calculate the cost of the premiums. The less frequency of accidents and driving under the influence in your record, the lower your premiums will be. Less serious offences such as running the red light or speeding also increase your payments. A point system is a common tool used by insurance companies to be more objective. The more points you have, the higher your risk, which leads to a higher premium.
* The type of car you are driving
Pricey cars get higher insurance premiums. Luxury cars are given the highest premiums because the cost of replacing parts due to accidents is higher. Performance vehicles and sports cars also get higher premiums because they can go faster than regular cars increasing their risk of getting into accidents. Safer cars with GPS systems are sometimes offered no down payment auto insurance by some companies.
* Some other factors
Research shows that married people are less likely to be involved in accidents compared to singles. There are auto insurance with no down payment offers exclusive to married people in some insurance companies.
The mileage of a car is also one of the factors used by companies. Your premium will be higher if you have higher mileage. This is justified by the fact that the amount of use of your car is directly proportional to the risk of getting the car into an accident.
This article is about the factors that insurance companies consider in calculating individual payments.For more information on car insurance with no down payment please click this link.