Car Insurance Rating

A car conveys a statement of freedom and independence apart from also being a basic means of transportation. However, owning a car also means taking charge of the financial responsibilities that come with it. It is in such circumstances that the car insurance rating system comes handy.

The car insurance rating system rates cars for insurance purposes based on performance on the road and its history of claims. It does not rely on the initial cost of the car. Safety features such as air bags and anti-theft devices, which initially add to the cost of a vehicle, can also fetch you reductions in insurance expenses.

Therefore, it is essential to understand how insurance companies evaluate risk. This will enable you to know what information they can be supplied with in order to convince them about your car being a low-risk case

At Powerseeker.com, we understand that as potential car insurance seekers, you are looking for not only the economical quotes but are not willing to compromise quality over quantity. Keeping in mind the popularity of the rating system, our team of insurance advisors has prepared a ready reckoner of frequently used car insurance rating factors:

The purpose why the car is used:

A car can be used for commercial or private purposes. In case it is a private car, constructed primarily for the carriage of passengers and taxable for private use only, it will have different rating criterion than those for their commercial counterparts. A car driven for 16000 miles per annum is more at risk than the one driven for merely 5000 miles, simply because the car is on the road much more. This renders the car insurance company to probable liability to a greater extent.

Types of cars:

Cars are by and large categorized into different insurance clusters. Till date, there are 20 groups that consent to precise appraisals of makes and models. The divisions depend on three main aspects:

The price of the vehicle -- obviously a Lexus SUV will cost more than a Ford Taurus.

The expenses incurred in getting the parts replaced.

The vehicle's performance -- the easier a car can travel at high speeds, the more likely it will be driven to those capabilities.

The place where the car is kept:

This factor is vital because the place where the car is usually kept might have an impact on the calculation of your annual premium. You will have to pay less if your home address is outside an urban area, where less accidents and thefts are likely to happen.

Cover required:

Comprehensive cover provides the legal minimum third party only insurance in addition to fire or theft of your vehicle and accidental damage to your own vehicle. Third Party Fire & Theft cover provides the legal minimum insurance as for t hird party only and fire or theft of your vehicle.

Age of insured and/or regular driver:

Chances are you will have to pay less if you are older than 25 years, female and married.

If you can pay due consideration to the above-mentioned points, the process of choosing appropriate car insurance would be much easier for you. We at Powerseeker.com have a final word of caution for all potential buyers of car insurance: Consider what most insurance companies do not cover. Examine the loopholes and fine print.

By Adrian Pitt