Reasons Affecting Car Insurance Premium

  • Reasons Affecting Car InsuranceEducation Qualifications :
    While education may not make one a better or safer driver, it says a lot about what kind of person the applicant is. Education Qualifications and employment directly influence income, income affects lifestyle and lifestyle is a very important consideration for car insurance companies. Not only does lifestyle showcase the scale of living, it also influences the sort of money at one’s disposal. The kind of car or vehicle to be insured is one of the most important factors that influence how much you pay as premium. The costlier the vehicle, the more the car insurance will cost as the cost to repair a high end vehicle is a lot.
  • Credit details :
    The relationship one has with the bank says a lot about the person. The insurance company may ask to see bank documents. However, most of the time, the New Jersey car insurance company will run a background check on a person’s credit history. While most of these details may provide tangential information, not directly saying anything about a person’s character or driving technique, they do count to create an overall picture of the applicant. It might make some sense to manipulate your credit rating and maintain a decent credit history profile, considering this detail is scrutinized by insurance companies.
  • Use of the Vehicle :
    This is important to note. It should be obvious that the more a vehicle is used, the higher the chances of meeting with an accident. Even though a person may lead a high flying lifestyle and need to travel distances to work and back, he or she may have limited use for the vehicle. Several New Jersey car insurance companies provide transport to their officers. So a person possessing an expensive car may have one because he or she has the means to but may not get much use out of it. The insurance company may charge a lower premium in such cases and provide a policy that has limited coverage.

Keep Your Home Safe

  • Keep your Home SafeNuclear Accidents, Terrorism and War :
    No matter how many New Jersey home insurance companies you shop around with, these are events that will never be covered by home owners insurance. Unfortunately, in the event that one of these situations does occur, you will simply have to face the costs without any help from insurance, as there are no ‘add on’ polices available to cover these circumstances.
  • Water Damage and Mold :
    This is a situation that is covered by some New Jersey home insurance companies, but excluded by others. Five years ago, the damage caused by a burst water pipe, and the corresponding mold damage would have been covered. Now, it is important to check whether your policy will cover you in this type of situation.
  • Natural Disasters :
    Fire, hurricanes, earthquakes and floods. Everyone hopes that they will never be affected by one of these events, but it is possible that you will be. It’s almost impossible to find a home insurance policy that will cover earthquakes and floods. Instead, if you live in an area prone to these types of events, you will need to take out separate coverage to cover these. If you live in a remote, bushy area, you may find that you’re not covered for fire damage in the event of a wildfire. Be sure to check your insurance policy for terms and conditions relating to this type of event to ensure that you are actually covered.
  • Dogs :
    As crazy as it sounds, having a dog, and more specifically, a dog considered to be an ‘aggressive’ breed can exclude you from getting coverage, or raise your premiums by a staggering amount. If your dog has ever been involved in a biting incident, you are unlikely to find a home insurance company that will cover you at all. You can ask that your dog be excluded from the coverage, which means that in the event of any situation involving your dog, you will have to pay the costs yourself.