How to Compare Car Insurance

First, let's compare Comprehensive insurance and third party insurance policies:

While comprehensive insurance policy is expensive third party policy is significantly cheaper. The major differences are the following:

Third party insurance cover the damage caused to other people and property by policyholder's car.

Comprehensive car insurance compensates loses in case of damage done to the car of owner, death or injury of owner, his passengers or third party driver and passengers, as well as car and other property damaged by the car of policyholder.

The car insurance companies do not compensate if the damage was caused:

1. At the moment of accident the policyholder had invalid driving license.
2. When the driver was affected by alcohol or drugs.
3. When the car of the policyholder was exploited as a taxi.
4. Due to civil wars or riots.

The list below itemizes factors which influence car insurance rates. Take these factors under careful consideration before buying car insurance and you will get the best insurance for your car.

Car Condition: The condition of the car is important when it comes to premiums, as the calculations are based on the value of the car. If a car is a new one, sales value is applied in calculations, but if a car is old insurers use IDV, the Insured Declared Value. The Insured Declared Value is reduced value of the car, which is set according to year of the car, its brand and model. Insurance companies usually have a list of the IDVs of the vehicles, where you can find your car. The final IDV is agreed by the policyholder and the insurer.

Automobile Associations: A discount on premiums is usually offered if a policyholder belongs to more or less renowned Automobile Association. Moreover, there is a discount for those who care about their cars security through fitting protective devices, such as anti theft alarm. Protecting devices should be authorized by the same Automobile Association.

No Claim Bonus: It is fair enough to get a discount on your premium if you make no claims. Policyholders that don't make claims are very liked by insurance companies and they try to give them deserved discounts. Here is an example: a policyholder buys car insurance and makes no claims during first year. The following year he enjoys lower premium reduced because of no claim bonus. Two years without any claim reduces premiums by 20%. However, you should remember that there is an increase in premiums if you often make claims. Often means repeatedly, each year. Make sure you read the No Claims Bonus clause properly, when signing agreement.

Easy renewal: Apart from monetary factors, check which company offers simple and easy paper work for renewal as well as for claims.

Discounts for handicapped people, available or not: Some companies offer discounts for handicapped people. These discounts are different, so it is important to shop around.

However, to get such a discount a car must be modified according to the need of a handicapped person.