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It can be a bit nerve wrecking, trying to compare and getting the best rate for your motor insurance policy.

It seems that every company has its own rates and nobody want to pay more than they should. However, the fact is insurance companies have experienced a lot of claims both genuine and fake, which has led to huge losses in the recent past. In a bid to stem those losses, some companies are beginning to apply more stringent terms in the way they issue motor insurance policies For instance, some companies will no longer insurer certain model of cars like subarus and BMWs, while others are charging extra for certain model of vehicles.

Here is what you need to know as you search for a motor insurance policy. Companies usually consider the following factors in determining Insurance Premiums:

1.      Claims History and driving record – Insurance companies will consider if one has had a number of accidents and the claims they filed. This is especially important on the renewal of the policy.  A good driving record normally ensures a lesser premium, and vice versa for a bad driving record.

2.      Age of the Driver – According to insurance companies, young people are considered more risky while driving and subsequently the premiums charged for those under 26 years is generally higher. Mature drivers are considered less risky and have fewer accidents on account of their experience.

3.      Gender and Marital Status of the Driver – This may sound a bit sexist, but male drivers are considered more likely to be involved in car accidents than female drivers. As a result, some insurance companies are now targeting female drivers with specific insurance offers. Marital status is also a factor, as statistically speaking, married drivers are less likely to cause accidents than their single counterparts.

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4.      The Value and Age of Your Car – Generally speaking, insurance companies will tend to view drivers with  high value cars as low risk, due to the fact that they tend to take better care. The age of the car also plays a role in determining the premium rate charged on the policy; the older the car the higher the rate.

5.      How the Vehicle will be Used – Insurance companies will charge different premiums, depending on whether the vehicle is used for business or domestic purposes. Vehicles used for business purposes tend to accumulate more kilometers than for personal use. Therefore, they will be charged a higher premium due to the higher risk of getting involved in an accident

6.      Make and Model of Car – Some insurance companies will no longer insurer certain model of vehicles or charge higher premiums for them, due to the number of claims they have generally received from the owners.  

Those are some of the basic factors insurance companies look at in order to determine the appropriate premium for vehicles. At Afrinsure, you can easily check and compare what each company would charge you and make an order for the policy you desire. We have negotiated for the best rates in the market and you can depend on us to process your claims quickly should you experience an accident.