Car insurance quotes each year always seem to be going up in cost. But, where does all the money go for my car insurance premium? Well, if you read on I will tell you.
Car insurance today is a very expensive business to run according to some insurance companies.
The money goes to several places; fifty percent goes towards paying claims, twenty five percent to pay legal and administrative costs and twenty five percent for running of the insurance company. These are rough figures and do vary from insurer to insurer, it all depends on which one is better at saving money on their overheads.
A lot of the money that is paid out is for property damage to the vehicle and collision damage can make up towards fifty percent of an insurers total expenditure costs.
Medical and personal injury claims also play a small part in their costs too.
Insurers also pay a lot out on processing and trying to settle insurance claims.
Extra costs such as staff, commission and advertising can increase the running costs of the insurance company. The best way to try and avoid paying a high premium on car insurance is to shop around on the Internet and get as many quotes as you can, around five or six should give you a good idea if you have got a great deal or not.
Also think about increasing your excess level; this will help bring the price down. But just make sure you can afford to pay the excess if you have to make a claim.
Have you a security alarm system installed on your vehicle? This can help get you a cheaper quote. Direct line car insurance quotes can offer you great savings; see what features they are offering.
Where do you park your vehicle overnight? If it’s locked away in a secure garage some companies will give you a small discount for this.
So now you know where all the money goes on your motor insurance premium.
Tags: auto insurance prices, car insurance quotes, direct line car insurance quotes, insurance prices, saving money on auto insurance
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