Car insurance companies tend to reward drivers who have no claims record for an extended period of time. So if you are a safe driver, you may be qualified for a very special rate. All you have to do is compare quotes from several motor insurers and you will discover how cheap your car insurance can get.
Auto insurance companies reward safe drivers because they do not claim from any insurer. As such, they do not contribute to the increase in the claims ratio. This keeps the insurers in the black. Essentially, whatever premiums you pay will be the insurer’s profit. And since they do not associate you with high costs, they are able to lower their premium to attract more customers like yourself.
One of the most important activities when buying car insurance is to understand what is covered. You have to make sure that insurers are offering you a low premium not because they are giving you a restricted cover. Otherwise you will not have the protection you want. This is the first important step.
Even though you may be a safe driver, this does not mean the premiums will be low for every insurer. Some insurers do not have the ability to sift out the wheat from the chaff. For this reason, you may still get a few high-priced quotes every now and then. Yet in general, you will only have to pay a fraction of what others have to. This is simply because you have kept a good track record for yourself.
In order to maintain this track record, you have to make sure that you do not make unnecessary claims. For many insurers, they are able to check if you have made any claims in the past 3 years. They are also able to find out how much you have claimed and what type of damages were involved during the accident.
If you make small claims, your premiums will increase. This is because there will be a loading imposed on you. On top of this, your no claim discount will almost always drop drastically. This only means you have to pay extra in premiums for the next 3 years to come. The more claims you make, the higher the loading. And car insurance premiums can get so high it astounds you. Therefore you should only make necessary claims that are more than a few thousand dollars in value.
Finally, if you have been living overseas for a period of time, many insurers can also recognize your overseas no claims discount record. This is provided the overseas insurer can provide a written notice concerning your no claims discount.