What you Need to Know When Buying New Car Insurance

Filed under: Classic News |
Car insurance is vast and complex; in many cases it can be harder to acquire than shopping for an actual car. Of course, while it is difficult to acquire, it is completely necessary. A lack of insurance can mean that police will enforce legal action against you, such as hefty fines and a disqualification from driving your car.

There are a few different factors that can influence whether an insurer thinks you are a suitable candidate for their insurance premiums and plans. Some are fair, and others are less than just. Nevertheless, below we explore what you need to know when buying new car insurance.

Shop Around

The first action you must take is to really explore and assess all your available options. Different insurers have different rules, rates, and regulations. Depending on your financial circumstances, such as your credit history, you may find yourself being rejected from your preferred plans. Consequently, it’s important to have a few backup plans in case things don’t go your way.

Your choice of car may also dictate what insurance plan is best for you. For example, for second hand cars, a used BMW warranty will cover you against all breakdowns and faults. Obviously, this makes complete sense, as faults are more likely to occur in older vehicles. Ultimately, it’s better to be safe than sorry and to really pick out the best insurance plan for your personal circumstances.

Licence Points

Honesty and transparency is key to securing the best possible insurance. Once again, not doing so risks rejections and legal action, so it’s important to be completely truthful when gunning for your plan. After all, some drivers attempt to commit fraud against insurance companies, staging crashes that can’t be proven as fake. Therefore, it all comes down to a matter of trust.

If you have a hefty amount of licence points, insurers will likely deem you as a risk. Of course, they don’t just have money to fire away down the drain. Ultimately, you are more likely to acquire your preferred insurance plan by being a responsible driver. For all intents and purposes, it’s a business relationship, and it’s your duty to make sure you don’t abuse the system.

 Age (For Some Reason) Matters

Of course, the irresponsible behaviour isn’t squarely rounded out to those looking for the insurance. The insurers themselves can play a few dirty tricks too, and the most common of these is denying or raising the prices of insurance to those of a certain age. Through a combination of stigma and stereotyping, insurers can unjustly exploit an unlucky few.

These two groups are mainly new younger drivers and elderly drivers, who insurers assume will cause more accidents than the average driver. More accidents mean more coverage, so it’s not uncommon for them to raise prices or refuse service all together to these unfortunate demographics. In the end, you need to watch out for these situations, and find an insurer who treats you fairly.