The decision to buy a car is not an easy one to make. We spend a lot of time looking around till we find a car we like that we can afford 

6 Criteria that Determine Your Car’s Insurance Premium | Faydety

The decision to buy a car is not an easy one to make. We spend a lot of time looking around till we find a car we like that we can afford so the first thing to do once the car is bought is to insure it. Insuring your car is very easy, all you need to do is to select a car insurance company (make sure you choose one that offers you the best benefits). If you’ve taken out a car loan from a bank they could even recommend an insurance company for you.&nbsp;If you need to take out a car loan use Faydety’s&nbsp;<a href="https://www.faydety.com/en/borrow/car-loan">Car Loan Calculator</a> now&nbsp;<blockquote>If you are married and have a car that you want to insure, then you will have a greater chance that is compatible with car insurance</blockquote><h2>&nbsp;</h2><h2>How is a car insurance premium calculated?</h2>&nbsp;There are many factors involved in deciding the insurance amount and premium, some are easy to control and others not so much:<ol><li>Men vs. Women: men tend to be more aggressive drivers. Statistically even when women are involved in car accident there tends to be less damage than when men are involved in accidents. As such insurance companies prefer to approve car insurance policies for women more than men.</li><li>Age: those younger than 25 years old tend to get into more accidents than older drivers, as a result their insurance premium is higher than average.</li><li>Social status: if you’re married and wish to insure your car then the likelihood your application will be approved is much higher than if you were single. You might even pay a lower premium. The reason behind this is that insurance companies view married individuals as more responsible.&nbsp;</li><li>Location: insurance companies like to know your regular routes so that they can make an informed decision and calculate your premium. If you use the highway or travel a lot in your car you might end up paying a higher premium.</li><li>Employment: if you use your car for your job, for example if you are an engineer and you use your car to go to work sites, this will be a strike against you as it can possibly lead to accidents and the insurance company will probably have you pay a higher premium.</li><li>Driving habits: insurance companies are aware of how you drive, where, and when you usually use your car. Accordingly they decide what your premium should be.</li></ol>

When will your car insurance premium be higher?

6 Criteria that Determine Your Car’s Insurance Premium

Insurance is a contract, in the form of a policy, in which an individual or entity receives financial protection and/or compensation against losses from an insurance company. Insuring something means diverting the burden of payment for its loss from a personal responsibility to one that the insurance company bears on your behalf, in a certain percentage, depending on the type of insurance you have.&nbsp;&nbsp;The insurance company relies on calculating the probability of a loss or damage to an insured asset. If there is a high probability, then the insurance cost tends to be expensive; on the other hand, if the probability is low, the insurance cost tends to be relatively cheaper.&nbsp;Let's start with the basics.&nbsp;<h2>Insurance Policy:</h2>&nbsp;As stated briefly above, an insurance policy is a contract between you and an insurance company. This policy outlines your agreement's details and determines the claims that the insurer is legally required to pay in exchange for a premium. It essentially states that the insurer must pay for any loss or damage caused by risks covered under the policy.&nbsp;<h2>Insurance Premium:</h2>&nbsp;An insurance premium is a certain amount of money that you need to pay periodically in exchange for the maintenance of your chosen insurance policy. If you are unable to pay the premium, the insurance policy will be forfeited. If this happens and you decide you would like to keep your coverage, you may be required to pay a fine or charge a higher premium accordingly.&nbsp;<blockquote>The insurance company relies on calculating the probability of a loss or damage to an insured asset</blockquote>&nbsp;<h2>Types of Insurance:</h2>&nbsp;There are many different types of insurance. Though it is possible to divide them into two basic categories, under which the other types of insurance fall, the two categories are:&nbsp;<h2>Life Insurance / Health Insurance</h2>&nbsp;Life insurance is a contract between you and an insurance company where, in exchange for premium payments paid by you during your lifetime, the company will pay a sum of money to your beneficiaries after your death.&nbsp;&nbsp;Health insurance covers medical expenses that may arise due to illness. These expenses could entail costs of hospitalization, cost of medicines, or medical consultation fees.&nbsp;These insurance types are primarily based on individuals, although some countries go one step further and provide pet insurance. This is because, at times, the cost of medicines and veterinarian visits are higher than the costs of individuals.&nbsp;<h2>Property Insurance / Disaster Insurance</h2>&nbsp;This type of insurance reimburses an individual or business and protects a physical property against loss from theft, fire, natural disasters, etc. Property insurance covers the building or structure itself as well as its contents, whether personal or corporate, including furnishings, inventory, and other items.&nbsp;Get your <a href="https://www.faydetyinsurance.com/en">Insurance Policy</a> Now through Faydety!

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6 Criteria that Determine Your Car’s Insurance Premium

When will your car insurance premium be higher?

How is a car insurance premium calculated?

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