Buying car insurance is not for the fainthearted! Hunting for the right insurance policy for your car can be a lot of work. It can be quite tough unless you are skillful at choosing the right cover.

There is a lot of advice all over the internet regarding the insurance policy that is good for your car especially if it is new. However, you must first find out how much it will cost you. It is advisable to take your time to pick the right insurance while comparing the quotes from different companies. By looking up information on insurance web pages like http://www.insurancepanda.com you will be able to see their services and request free quotes that you can compare.

Here is a checklist to ensure you get the best services from your car insurance policy:

What type of insurance do you need?

Insurance policies are generally classified into two:

• Third party liability insurance – It covers the damage of property, death, and injury to a third party.
• A comprehensive plan – It covers both the damage and the legal liability of a third party. It is one of the best, but it is quite costly.

What are the factors that affect the premium of your vehicle insurance?

There are several factors that affect premiums based on the size of the risks that the insurance company will be countersigning, and they can be grouped into four categories.

• Vehicle-related risks – The make, the fuel type, and the cubic capacity are some of the factors that determine the premiums. Commercial vehicles and vehicles like SUVs are termed as heavy vehicles that need a higher premium than the rest. Premiums on vehicles that are less than five years old are usually based on the years that the vehicles have been in use.
• Any location-related risks – This depends on the area of registration. The area you live in will affect the rates of premium that you will pay. For example, if you live in the city, your premiums are bound to be higher. If your area is well-known for car theft and crime, then you will be charged more as well. This is because you are at a high-risk place.
• Driver-related – You have to provide the age and profession of the driver, and if they are more than one, then your premiums will be higher.

How do you reduce the cost of your vehicle insurance?

• By paying for small damages from your pocket – Small damages are bound to be charged highly if they are deducted from your premiums. If you choose to pay from your pocket voluntarily, then the premiums will be reduced.
• No claim bonus – you can reduce your payout premiums by almost 50 percent every year if you don’t claim any insurance on your vehicle. As long as you did not cause an accident and you remained safe throughout the year, you can always ask for a bonus from your insurance company the following year.

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