Are you a complete newbie to the motor insurance world? Do you plan on purchasing a new vehicle, and you wonder whether you will need a new policy? These are all reasons why you might think if car insurance is typically for a person or car. That is why we designed a guide aiming to help to clarify all dilemmas in this area. Although the professionals often debate this topic, the truth is the following – you get a motor insurance policy primarily per car. Now, your policy’s specifics might cover different persons, but the general rule is that a single policy refers to a single vehicle. However, while estimating the premium you need to pay for the insurance policy, companies will often analyze both the driver and the vehicle. Furthermore, most of them put more focus on the driver.
What Factors Affect The Car Insurance Price?
The deal you choose will affect the price. For example, the basic policy covering only third-party damage will have a cheaper premium than a comprehensive policy that includes Own Damage Claim and other extras. However, our topics are the factors that affect the car insurance premium apart from the actual policy you choose. Here is an overview of what could affect how much you pay:
- Your driving history – the insurance provider will check the information about your driving history. For example, new drivers aren’t trusted, which is why they will pay more than drivers with a few years of experience (if they didn’t cause any accidents). If you have prior accidents where you were to blame, that also deems you a higher risk, and you can expect to pay a higher premium.
- No claims discount – if you are a regular and renew the deal with the same insurance provider, you can go for the No Claim Discount (NCD). NCD is available for all those who renew the policy for multiple years but don’t file any claims during that time.
- Car specifics – is it a new vehicle or an older model? Additionally, any modifications could also affect the premium, as well as information about previous thefts.
Here is something that could reduce your car premium price – the fact that you want to insure another vehicle with the same company. If that is the case, you might expect a discount offered by the insurance agent.
Can More Drivers Be On A Single Car Insurance Policy?
Here is a situation – you are a parent who bought a car for their child going to college. Not only they earned the reward, but it will be more convenient to drive to and from school. However, you want the policy to be in your name because you are the official vehicle’s owner. It’s possible to use the Name Driver policy and add other drivers to the deal in those situations. It’s possible to add up to five name drivers, which should be sufficient for most people. However, adding any number of drivers beyond the first two is charged. Despite that, it could be worth adding them because not including them is a risk. The insurance can use the unnamed driver excess policy and charge MYR400 for accidents where an unnamed person was behind the wheel.