Have you ever suspected that your car insurance premium is much higher than what it ideally should be? Perhaps your suspicions are right! Inflated insurance premiums are a common complaint among car owners since they are unaware of the factors that can drive up the price.
Wondering if you have overpaid for your current car insurance policy in Bahrain?
Here’s why your car insurance premium may be a lot more expensive than you originally expected.
Past record
Unsafe drivers are never in the good books of insurance companies and are invariably slotted in the high-risk category due to their poor records. Traffic violations and fines can blemish your driving record and significantly push up the premium amount.
Demographics
The amount of money you fork out on your insurance is heavily driven by factors such as your age. Insurance companies are risk averse and rely on past records of accidents to determine which group is statistically more likely to make a claim. Typically, young/unmarried male drivers have to shell out more on their premium compared to female/middle-aged drivers.
Type of insurance policy
Have you checked the contents of your present car insurance policy for unwanted add-ons or coverage? If not, then it is time you revisit your policy document. Sometimes, car owners opt in for additional benefits which may not prove useful in the long run. Dropping them now is the right way to go.
Moreover, your premium is also decided by the deductible amount, which is your portion of the liability in the event of making a claim. Safe drivers can decide to pay a higher deductible to bring down the premium costs.
Car make and model
Insurance companies are wary of high-end vehicles that are at a higher risk of damage, theft, or crashes and often quote higher premium to insure such cars. Same is the case with modified vehicles, that are usually listed in the high-risk category. Before buying a new car or making modifications, it’s best to do a quick research on safety ratings and how they can affect the premium.
Claims history
Your claim history is one of the primary factors driving the price of renewal. An accident-free record makes you eligible for a no claims discount which can take as much as 20% off your annual premium. Hence, it is advisable to maintain a clean driving record by managing the cost of minor and inexpensive damages on your won.
Ignoring the importance of quote comparison
A lack of research can lead to regrets in the future. Buying a policy on the spur of the moment or renewing without comparing might turn out to be a costly mistake. Take your time to evaluate the policies offered by different insurance companies and carry out a cost-benefit analysis before arriving at a sound decision.
You can simply visit Souqalmal.com to compare multiple quotes from leading car insurance providers in Bahrain. Not only can you pick a policy that fits your budget, but also choose between a range of optional features to find a car insurance plan that truly meets all your requirements.