Factors that determine CTP insurance rates
When it comes to purchasing CTP insurance, there are some questions the insurer usually asks. Perhaps you were asked one time and wondered why the insurer was so interested to have such information. It may interest you too to know that such information helps insurance providers to determine and set your rates. For them to set rates that match your needs, there are several factors that they consider. Check out some of them below.
Your accident history plays a significant role in determining your insurance rates. If you have been involved in several accidents previously, you are considered a risk, meaning your rates will go up. Driving safely on the road is thus beneficial in many ways. Insurers will consider the number of accidents involved in when determining your CTP insurance rates.
Your residential location
The place where you live is another factor that determines your rates. For example, if you reside in an accident prone area, you are also considered a risk. Regions that are especially crowded with vehicles are prone to accidents. Such areas include urban centers. If you live in a locality that records few accidents in a year or so, you are lucky. It can help lower your rates.
This is where you should be careful with your insurance. If you make claims unnecessarily, then this might affect your rates when you go to apply for another insurance policy. Insurers always check your previous insurance level and the number of claims that you were at fault. You are not only keeping the law when you drive safely but also creating a good record.
Did you require an additional cover?
CTP insurance does not provide coverage for damages caused to your vehicle or other people’s property. If you want to cover for damages of that kind you will need to include an additional cover on your insurance policy. With that in mind, the cost of your insurance will go up.
Your driver’s age
Though you own the vehicle, you may not be the one driving it. If you have a driver, is important. According to statistics, young cause more accidents as compared to the elder drivers. Since CTP covers for your driver and anyone who might drive the car, experienced drivers are an option. In this case, you can consider a company offers money off for experienced drivers.
Type of your vehicle
You bought that expensive and high-powered car and got excited. But take note of this; high powered vehicles are linked to dangerous driving behaviors. This, in turn, raises your rates because there are chances of you getting into accidents.
Everything about you and the vehicle is important for the insurer to know. If at any time you change your location or driver, it is necessary to inform your insurance provider. This might help lower your rates. Your compulsory third party insurance rates may vary depending on the factors and your insurer. Before you choose your preferred boat insurance provider, think about your needs.