A guide to performance car insurance shopping

2007-03-08 10:33:40

( Automobiles )



There are many factors that performance car insurance companies consider when insuring a car but the most important risk factor is the kind of car or cars that you own which you are insuring. Important parts of this are the make, model and age of your car.

If you choose to purchase the collision and other-than-collision coverage, performance car insurance companies calculates the car insurance rate. This is how much your car costs and how much it will charge in premiums. Insurance industry uses standard formulas for this to avoid discrepancies.

There are four factors that influence auto insurance premiums. First is the age of your car. Second is the value of your car. Third is the deductible amount that you have chosen. Fourth is the terrain in which the vehicle is situated.

If all other factors are held constant, the older your car is, the less the cost for collision coverage. The age of your car is obtained from the model year. Insurers use a special method for calculating the model year of your car and this is the age group rule.

Insurers would assign your car to a specific symbol group to identify the value of your car. If your car has the greater damage in a crash or is expensive to repair, it would be assigned to a different symbol group. The higher the symbol group code, the higher the rate of the car.

Sports and luxury cars also cost more to insure. Most performance car insurance companies classify car models in four groups. First is the standard, second is the high performance, third are the sports, and fourth are the high performance sports.

So if you are out there to shop for cost-effective insurance or for safe auto insurance, you should remember these rating factors. You will definitely find these very helpful. Plus, if you are aware of these factors, you can already speak proficiently with the auto insurance company and know exactly what they are talking about.


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