There are several methods followed by car insurance companies to calculate whether the customer comes under the category of high risk car insurance or low risk car insurance and these calculations are quiet precise. This article tells you about some of those criteria which are followed by insurance companies while dealing with the situation of classifying their candidates under such categories. Most of the customers while buying new policies dont realize the fact that the large insurance companies consider the payment system of the premium decided by the new customer as the decision taking factor before signing that customer about line. Various customers dont know that if they will pay high premium then in some way they are adding this amount in to their monthly savings. The above fact can be explained through an example clearly. Suppose you are paying $500 premium on your current policy. If you had gone for $1000 premium instead of $500 policy then you could save 25% off on your current or next policy. So this picture is quiet clear that by paying large amount of payment per policy we can save money in our next policy. If you are the owner of a big expensive fancy car then your car act as a magnet and the highway patrol men can see your expensive car in crowd of various vehicles on road and they can take a large amount of money from you to pay the fine in charge of over speed and they believe that you will pay that charge easily and your fancy car is the only reason which makes them to take this decision. Instead of buying a high range you should buy a mid range car because this decision will hide you from the radar of the highway police men.If you are paying a high premium for a vehicle which is worth less for these premiums then it will be a better choice to get premium for that vehicle if that vehicle met with some accident and get damaged that cannot be repaired. If you will get your policy money then you can buy new vehicle or another used vehicle. You can compare well known companies on internet to conclude which insurance company is offering high discounted rates.
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