Is low premium really good?

If you run a search on google, you will find plenty of articles providing tips on how you can save on motor insurance premium.

But wait, is that really savings? For some instance, it may indeed be savings but only in the short run. In other instance, it could be a possiblity that the information provided are not consistent. This is very common when your agents do not have your complete information. You have to understand, at times, even a year more of driving experience explains for the difference.

If the infomation provided are accurate, then there could be more restrictions and conditions imposed on your policy. Why? It's very simple; Insurers are not charity organisations. If insurer A charges $500 premium and insurer B charges $1000 premium, it only makes sense for Insurer A to probably tighten the policy. To do that, they can increase the excess or restrict the profile of the drivers athorised to drive the vehicle under the policy.

For example, only people of age 26 and above with at least 1 year of driving experience is allowed to drive the vehicle. As such, if your children or friend fall under this catergory, they will be excluded from coverage.

I'll like to stress that most people buy a car as a convenient mode of transport and if the restriction infringed on this purpose, then it is not advisable to go for Insurer A. Even though you may enjoy some savings in the short run but it also mean that you will need to come out with higher excess in the event of an accident.