Car Insurance
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Reduce the Cost of Owning a Car


Why you need car insurance
Insurance for Car versus Risk
Before continuing, remember that every insurance company considers providing you with insurance for car, truck, boat, etc., as a risk. As I have noted in previous articles, insurance companies will establish premiums based on your characteristics and they will group you with others with similar characteristics.
Put simply, the company will categorize you (i.e., rate you) based on information such as age, marital status, past driving record, the type of car you will be insuring, etc. They rely on the information you provide on your policy application in making this determination. Based on your information, you are categorized into groups and the insurance company then reviews the claim history of those groups to make projections about future claims. A rate for each group is set based on the historical claims statistics paid by the insurer for the people in that group.
With this in mind, you can see that it is very important to provide complete and accurate information on your application. Doing so will guarantee that your vehicle insurance premium quote will truly reflect your unique situation and that you will be quoted a fair price.