What You Need To Know When Buying Motor Insurance For First Time

There are many things that you should know when you are buying motor insurance for the first time. The premium you pay depends on several factors like your driving experience, gender, marital status, age, claims experience, make and model, type of coverage, age of vehicle, and many more things.

Type of vehicle

The first thing that you should know about motor insurance is your rate can depend on the type of vehicle that you want to have insured. Assuming all things equal, a Subaru Impreza WRX STI 2.5 will command a higher premium than a Toyota Camry 2.4. Generally, sports car or high performance vehicle will command a much higher rate. Other vehicles that are higher to insure include vehicles that are on the top ten most stolen list. Few years back, there was a high theft frequency of Singapore registered Toyota Harriers in Johor Bahru. Therefore, do not be alarmed if the rates fror such model is relatively higher. If you have not purchased your vehicle yet and you want to be sure to have the lowest insurance payment possible, then you should check this list.

Brand new vehicles are expensive to insure also. This is partly due to the higher repair cost possibly incurred as vehicle less than 3 years old are allowed to go back to dealer workshop for repairs with original parts used.

Type of plan

If you buy the car cash out then you can get the minimum coverage to be sure that your rate is cheaper but the more expensive the car is, the more the insurance rate will be. Also, if you purchase a brand new vehicle with a loan from a bank then the bank will insist that you get full coverage on the vehicle. This will be substantially more expensive for you also.

Age of insured &/or drivers

When you are looking for cheap auto insurance for first time drivers it is also important to compare all rates that you can. This means shop around and gets quotes from different insurance companies and sees who can get you the cheapest rate. Age makes a difference when you are looking for auto insurance also and if the first time driver is a teenager, then you should expect to have a high rate. The rates tend to drop with age after the age of 24 and after a proven track record of good driving.

Driving history

If you have endorsed or revoked driving license, you should expect your insurance rates to go up. E.g. drink driving. If you are in a car accident and you have to make a claim, you can also expect your rates to go up. It doesn't matter if the accident was your fault or not, it is because you made a claim. Some insurance companies will set up a claim reserve in anticipation of a potential Third Party claim against your policy. As such, you should expect a drop in your No Claim Discount on renewal.

Conclusion

If you are looking for cheap car insurance, it is crucial that you understand the terms and conditions imposed accordingly. There could be a higher deductible in exchange of a lower premium. Be sure that you agree with all of the terms.
Weigh your options and seek opinions from friends if needed. Be sure to shop around from different insurance companies to find the best rate and best plan for you.