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Monday, March 28, 2011

Determination of insurance premium charges

There are many factors that will decide the premium charges. Most of them are decided in two ways.

Government:
Every company can have a difference in the premium charges but there is one factor that all companies have to follow, and that is the governmental guideline. The companies cannot take more or even less than that of the governmentally guidelines because the government takes the fraud act seriously that can be one by the car insurances.

Companies:
Companies can have the price and claim differences even after following the guidelines of the government. The companies are giving the low and high price in the car insurances so this leads to the term called cheap car insurance.

Both companies and government decide the premium charges according to some factors that are given here.

Gender:
It is the factor that is causing the great problem these days as recently there was a term introduced called the women discount and birth men, and women protested it as they think that both are equal. The young women have fewer premium charges as compared to the men. Te young men have more chances of accidents, so they are charged more. This means the cheap car insurance is easy to find for women’s. In case of older ages, there is not the distinction of gender.

Age:
It is the second most important fact that you must know if you want to buy auto insurance. The persons that are of less aged are given discounts. This is beneficial for the company as getting new insurance will be easy for them, and they will also get more and more clients because the young persons have more awareness and they also o some advertisement without even noticing.

Car category:
There is the most important factor while you are ready to buy auto insurance as the car insurances are according to cars. If you have a simple and low quality car then the premium charges will be low as compared to a full stylish luxury car because the company will have to give more to get it repaired or get a new one if it is stolen.

Credit ratings:
This is a system that runs opposite to the thinking. We think that if the person is rich then he will be charged more premium charges but this is not true. Most of rich persons have a good credit report, so they will be charged less as compared to the persons that have a dirty credit report.

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