Factors That Impact Your Price for Car Insurance

car insurance




Do you know what your car insurance premium is based on?  You may think that the price that you’re paying is based on a profit margin required by a large insurance company that’s remotely interested in you or your safety but just the opposite is true.  The amount of your premium is determined by using a formula that includes a number of factors from your individual information.  An insurance company evaluates how much of a risk you’ll be based on some very important criteria that you need to know about.  In order to keep your personal finances under control, you should plan for adequate cover to protect you, your assets, and your investment in a good car.

Age Means Experience

In almost every aspect of life, experience makes a big difference; insurance is no different.  Younger drivers have higher premiums than their older counterparts because of the experience factor; older drivers can make more reasonable and practical decisions quickly since they have a great deal of experience behind the wheel of a motorcar.  Once a driver reaches 25 years of age, they can expect the price that they pay for car insurance to decrease; they will have also obtained a lot of experience which enables them to act more responsibly in an accident.

Gender Makes a Difference

If you’re a male, you probably take more risks, express your aggression behind the wheel more often, and demonstrate more rule-breaking behaviour than females.  For these reasons, insurance cover for men is usually higher than for women; however, after the age of thirty rates become more comparable.  Men who are married pose less of a risk as well so that is another factor that can figure into your premium.

Education is an Indicator of Good Driving

It’s also interesting to note that your level of education can play an important role in determining your rate of insurance.  If you’re well-educated and employed gainfully, you show a willingness to work diligently to reach a goal; this is indicative of maturity and can impact the rate of your car insurance as well.  Educated, employed individuals show higher levels of responsibility than drivers who have low incomes and are less-educated.

Your History Follows You

If you have a lot of speeding tickets or have been involved in a multitude of accidents it goes without saying that your premiums are going to be higher than they would otherwise be.  If you’ve caused accidents in the past, your insurance company believes that you have a higher risk than other drivers of causing them in the future so your rates will be higher.  One of the ways that you can determine what your cost for car insurance would be is to use the Santam car calculator to determine the worth of your vehicle and the amount of insurance that you would need to adequately insure it.  This simple step can help you to budget the right amount for car insurance so that you’ll be protected no matter what your age or station in life.

There are many factors that impact your cost of car insurance and by controlling the ones that you can, you’ll have lower premiums that fit your budget easily.





The Benefits of Buying a Car on Finance

car finance

Buying a new car is never easy – the first example as to why is right there, do you buy a new model fresh from the manufacturer or do you spend less money on a second hand model in the knowledge that you will have saved some money but someone else has already put miles on the clock and potentially sold it on because it’s always breaking down? That’s all before you’ve decided on what make and model you’re looking for, whether you choose a petrol or diesel-powered model or the kind of gadgets you’re after such as built-in satellite navigation, heated seats and iPod compatibility.

You’ve then got a dilemma over the kind of vehicles open to you if you or someone you know has some form of disability. You might need specialist access to the vehicle and you’ll almost certainly need to have certain parts of the car adapted to meet your needs. Some dealerships are now focusing on this with the Jennings Motor Group offering a motability scheme that allows people to exchange their Government motability allowance for a vehicle with a three-year lease.

If this doesn’t apply to you, you might be wondering how you’re actually going to pay for your new car. Sometimes the decision is taken out of your hands as to when you’ll buy your next vehicle because your existing car has problems or has been involved in an accident. In other instances you might just feel that it is time for a change and you start to save up. Many do this with the best of intentions, attempting to save money away until they reach what they have set as a target for their budget but they always end up dipping into that fund in emergences and the budget starts to drop. However, purchasing a car on finance will allow you to look at vehicles that are nearer your original target or might even be more than you would have planned to spend in one lump sum.

It’s also often much simpler to get a car finance package than it is to get a loan from your bank. If you have a poor credit history with your bank they’re much more likely to turn you down for a loan, but applying for car finance is much more likely to go through because they appreciate the need for a new car in order for you to fulfill your daily duties like taking the children to school and going to work, and this could open up a range of possibilities for you that may include new career opportunities in better-paid jobs that will help you to pay back the money you owe sooner.

You also get the chance to negotiate the monthly payment with the dealership or the bank, helping to make the repayments better for all concerned. The shorter the payment period, the more you’re likely to pay each month, but the longer the repayment period the less you’ll be repaying but you will be paying back more in interest.

Ella Mason, an experienced freelance writer, wrote this article. Ella specialises in providing useful and engaging advice to small businesses. Follow her on Twitter @ellatmason


Top 5 Trade-in Tips When Purchasing a New Car

Purchasing a New Car

If you own your car outright, it might have depreciated in value over the years, but that doesn’t mean it can’t still be legal tender. If you drive by a car dealership and see a car you want, you might be able to trade in your old car for part of the value of the new car. This is called “trading-in” and it is a common practice in the car industry. However, it is important to know exactly what you are getting into before you trade-in your car, because you want to ultimately get the best deal. Here are the top five trade-in tips when purchasing a new car.

  1. Have your car detailed. Many car dealerships are weary of trade-ins, because just like you, they also want to get the best deal. However, if you show up with a car that is messy or dirty, chances are that a car dealer will look the other way. Yet, if you pay the couple of hundred dollars and have your car professionally detailed, it will make an enormous difference. It will show the dealer that you took pride in ownership and it will help the dealer make a decision on the trade-in value.
  2. Show all records of repairs and services. Car dealers don’t want a used car that has been through the shop a hundred or more times – this just shows that the car is a clunker. While a car dealer will probably unload the car at auction, especially if you are trading in the old car at a new dealership, making sure that you can trade-in the car with proof of minimal upkeep is important if you want to get the best value. If you want to get the car you want, your old car better be in almost as good condition.
  3. Make sure you know exactly what your car is worth. If you don’t have the exact market value for your car, it will be hard to negotiate with a car dealer. Chances are that you won’t get the best value. Who knows, your car might be worth much more than you think it is – perhaps because of the brand, or because of a particular part – so you don’t want to drive out of dealership with a car worth far less than the car you traded in.
  4. Get the best deal in town. When you are trading in your vehicle, you don’t want to go with the first dealership that offers you a deal. Chances are that you can find a better deal in town. Even if you are trying to trade your old vehicle in with a dealership that doesn’t sell your brand of car, you still want to look at every single option.
  5. Don’t get your car repaired before you trade it in. If you desperately need a repair and you know that the repair is minor, like a new belt or a new fuel gauge, you should let the dealership know and they will make the repair. You don’t want to waste your money, because you probably won’t make it back. Oftentimes, the dealership can have these minor repairs made for a much more affordable rate. So, when you are ready to trade-in, trade-in as is – you’ll be much better off.