Direct car insurance is the insurance that you purchase directly from a car insurance firm rather than through a broker. Depending on your requirements, direct car insurance may cover physical injuries, damage to your car, collisions and theft.
Factors that Influence Direct Car Insurance
There are various factors that play an important role in deciding the cost of direct car insurance, such as:
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Car model: Expensive cars attract theft and thus are seen as a risky proposition. Insurance companies often hike the premium for expensive cars.
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Residence: The kind of locality you live in and its traffic conditions let the insurance company calculate the probability of accidents.
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Marital status: Statistics show that single people tend to be reckless drivers and therefore insurance companies charge them a higher premium.
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Credit history: Drivers with bad credit history are considered to a risk in terms of timely premium payments. Therefore, car insurance companies increase the premium to balance the risk.
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Driving record: Driving recklessly reflects badly on the driving history and such drivers are charged higher premiums.
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Claim record: Owners driving safely or taking care of maintenance and petty repairs are given no claim discounts. Also, checking the claim records gives an insight into the kind of accidents or repairs that have been done on the car.
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Car usage: Longer distances increase the probability of accidents. Therefore, higher premiums are levied on vehicles that are used for longer distance.
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Gender: Women are considered safer drivers and insurance companies give them some leeway in premiums.
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Age: Drivers younger than 25 or older than 60 are considered risky by car insurance companies and therefore their premiums tend to be higher.
Direct Car Insurance: How to Save Money
There are different ways of decreasing the premium of your direct car insurance. The first way is to decrease the amount of distance the car is used for and get safety equipments installed. For this, one should always check the list of approved security equipments to ensure that the investment in installation is not wasted.
Another way to decrease the premium is to buy other insurance policies from the same company that issues you the direct car insurance.