Car insurance is an interesting subject. It’s always a little interesting because it’s never the same. It’s difficult to pinpoint how it works, what it means, and how it’s utilized. There are some facts you know about car insurance that are true in many cases, but not always true in other cases. No matter what you think you know about car insurance, you really know very little. It’s always changing, it’s always confusing, and there’s very little that means the same thing with every company. Find out a few Car Insurance NZ https://www.youi.co.nz/car-insurance-nz facts you thought you know all about, and what they really mean when you delve a little deeper.
Lower Deductibles Aren’t Cheaper
You have a car insurance policy, and you choose a low deductible. If something happens to your car, you want to pay a little less to get your car fixed. It’s common knowledge that you can lower your premium by raising your deductible, but there’s a little something you don’t know when it comes to car insurance premiums. The lower your deductible, the higher your insurance premium because you’re considered a risk. Insurance companies want to issue you policies, but they’re afraid you can’t afford them if you’re looking to pay less in the instance of an accident.
New Cars Aren’t Always Cheaper to Insure
When it comes to car insurance, you imagine that a newer car is less expensive to insure. This is true and it’s not true. New cars are less expensive to insure than cars that are very old, no longer being made, or that are known to be very difficult to repair due to a lack of available parts. However, this does not automatically mean your new car means your car insurance premium drops. New cars are expensive, and driving a brand-new car off the lot means it’s expensive to replace if anything happens to it. A newer car that’s used is a better, more affordable option.
Turning 25 Doesn’t Always Help
Being a young driver means you’re a more expensive driver in the eyes of car insurance companies for many reasons. Young drivers have less experience on the road, and experience is a valuable teacher. They’re also less responsible because they’re still young. This means they’re more likely to become involved in a car accident. It’s common knowledge that turning 25 is a rite of passage for drivers and their car insurance policies, but only some companies offer a discount at this age.
On the other hand, getting married will almost always drop your premium. Statistically speaking, married drivers are involved in fewer accidents than anyone else, which means you’re going to see a drop in your premium when you tie the knot.
If you want to lower your rates, you must look at your personal situation from every angle. It’s not always what it seems, but knowing what might help your situation is always going to help you find the best rates and the lowest premiums when your insurance is involved.