Budget Car Insurance Facts

Mickey | Financial Services | Sunday, January 23rd, 2011

The last one year has seen a significant increase in Budget car insurance. On average, the insurance increased by 40 percent with younger drivers experiencing the highest increase of 50 percent.

This means that a lot of time should be spent in trying to find the best budget car insurance quote. The following are some pointers you could use to reduce the cost of insuring your car.

Most insurance companies revise their budget car insurance quotes regularly in order to remain competitive in the market and attract new customers. You should take advantage of this fact and apply for a new policy instead of renewing the old one which most probably costs more. This is true even when searching for cheap short term car insurance.

Every product in the market has a rating so before you take on a new policy check how it is rated. The rating of a product will give you a good idea of the quality of the product. If you are looking for a basic cover for your car, then a two star rating will provide sufficient cover. However, if you need and advanced insurance product which offers 24 hour helplines and loss recovery for any uninsured loss, then a four or five star rating will offer the desired cover.

You can get cheap budget car insurance without having to compromise on the quality of the policy.

Insuring your vehicle with a third party is more expensive since the insurance company may assume that you don’t care much about your vehicle and so it is more likely to be involved in an accident. On the other hand, a comprehensive cover is more affordable.

Paying for the insurance using monthly installments is more convenient compared to paying a lump sum amount but it will add around 10 to 20 percent on the principal cost of the cover. Most drives opt for paying in monthly installments.

Make sure your car is covered for any use you may use it for. If you only use the vehicle for commuting or for social purposes the make sure these uses are covered within your policy. Vehicles used for business purposes cost a little more to insure.

Mileage is an important determinant of the premium you will pay so make sure the insurance company has record of your annual mileage and uses it to calculate the cost of the policy.

You can shop for budget car insurance online for the best quotes. You can also get advice on how to get the best deals on budget car insurance.

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