Dial Direct Explains Premiums |
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How many people actually understand why their insurance premium is what it is, or why they fit into a particular risk category? Ensuring that you understand how your premium is made up and why it is the level it is, can help to make sure that you're paying the right amount. With car insurance, the premiums vary according to the likelihood of you being involved in an accident, or of your car being stolen. So says Fabian Angiers, general manager of Dial Direct Insurance, who explains that premiums are directly related to a combination of various factors. These include the number of claims submitted, the age and driving experience of the driver and the type of car insured. He says, "The fewer claims you have had in the past, and the smaller the claims that you have made, result in you having a better risk profile. This, in turn, means a better premium. You may even be eligible for a discount on your car or household insurance if you have never claimed. Insurance companies classify clients according to these various characteristics, including details such as where the vehicle is stored overnight and the make, model and age of the vehicle. An important consideration is the fact that some cars are more susceptible to theft than others: For example, a very common model on the roads is easy to obtain parts for, so it is likely to be a greater target for theft. Also taken into account is the safety record of the model you are insuring, plus the cost to repair or replace it. In addition, other aspects such as whether you use the car for business or pleasure also impact on premiums." Most clients presume that the biggest risk to their vehicle is theft or a write-off, when in fact it is the cost of repairs. With cars today, even entry level models, being increasingly sophisticated, the cost of vehicle repairs has risen too. Often, components requiring repair have to be replaced instead of merely repaired, which shoots the cost of repairing a damaged vehicle right up. Angiers concludes, "While it is not possible to control the portion of your premium that is affected by your car's make and model, you can keep your premiums at an affordable level by claiming only when strictly necessary, if at all, ensuring that your car security is as good as possible, and driving safely to minimise the chance of being involved in an accident." Related Insurance Articles: * Its Your Choice When It Comes To Choosing An Insurance Company * Caring For Your Car In A South African Winter * Safe As Houses With Dial Direct * Choosing The Correct Insurance Value For Your Car * Dial Direct None Payment Questions Answered * Dial Directs Advises On Insurance Pitfalls To Avoid * Dial Directs Bucks Back Bonus * Dial Direct Insurace For First Time Insurers 
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| 3/14/2010 7:06:03 AM | |||||||||||||||||||||
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