Vehicle maintenance and its effects on car insurance premium

Vehicle maintenance and its effects on car insurance premium

Purchasing a vehicle is an enormous investment, and it is with no doubt that one would want the car to last for long. Simple ignorance, however, can run you into great problems. One of the major setbacks that you may encounter if you fail to maintain your car is an increase in your car’s insurance premiums. This article explores car maintenance and the impact it has on the vehicle’s insurance premiums.

Vehicles are rated based on two major factors; the risk of the car getting involved in an accident and the value of the vehicle.

As far as the risk is concerned, it has various effects on calculating auto premium rates. Usually, insurance companies consider accident statistics as this will majorly influence accident benefits insurance and the cost of your liability. One of the most important factors as far as accidents are concerned is your driving experience and record. For each part of your car insurance coverage, insurance companies utilize an intricate statistics system and their assessment structure to get the rates to offer. Although there also exist a variety of other factors that are considered in the calculation of insurance premiums. A car itself still plays a significant role in influencing the cost of insurance. Some of the key points worth noting down as far risk is concerned include;

  • How careful is your driving?
  • Your driving history.
  • Have you ever made a claim?
  • How often you service your car.
  • How well you maintain the car.

The value of the car is another essential factor when it comes to insurance premiums. The lesser value your vehicle has, the fewer the premiums that it will sustain, as the insurer will not be required to pay a huge amount out of any claim. With time a car’s value will depreciate, and each … Read the rest