Over the years, cars are one thing that has gained prominence. So much so that it has become an integral part of our life. It is no longer a status symbol but a gruesome necessity of life. From magnum opus, it has become the modulus of operandi. Almost everyone has a car now and this has caused the boom in the automobile sector. Through the years, it’s the only sector, which has seen a steady business flow even during the times of recession. Jeff Lupient MN says, as the growth in the housing sector leads to a boom in the real estate insurance business, similarly the growth in the automobile industry has given rise to a growing propensity for automobile insurance or auto insurance.
Although most of us are pretty much aware of the necessity of an auto insurance policy very few of us actually have an idea what influences these policies. While we are well-versed with the utilities of the deal, we seldom delved deeper into the phenomenon and looked into the factors which actually affect a car insurance policy. Similar to other insurance policies an auto insurance plan has its share of ups and downs which is gauged by these factors.
The model of the car
You may think any insurance plan will suit your purpose but that isn’t the case. The insurance policy is dependent on the car model. Even if you have the same car model as your neighbor yet you will see a marked difference in your auto insurance policy. This is because of the different versions of the same model. Automobile manufacturing companies keep upgrading their car models to latest versions. It’s just like our gadgets. So, ultimately the newest version will be fancier than the earlier one, making it more expensive when it comes to insuring the car. So, keep this is my mind before purchasing an insurance policy.
The health of the car
Jeffrey W. Lupient considers that the health of the car, that is, its longevity depends on its age and this determines the insurance rate. For new cars, insurance rates are quite feasible as they can easily compensate the damage by replacing it with a newer car when the repairing cost is too high. Moreover, new cars can withstand more problems hence are less damaged. On the contrary, an old car is already tired and exhausted. Hence, it can’t withstand stress and are more prone to damages. More often than not they are difficult to repair as their spare parts go out of production. So, the condition of your car determines the insurance policy you will get.
The manufacturing company
We often think of purchasing luxurious foreign cars. While it is a good practice is to beware of the cost that comes with it. Not only just about the high purchase value but its maintenance expenditure and very high insurance policy. Such cars often have a fancy build and added facilities, which might not feature in ordinary cars found in the country. Now, as their machinery and manufacturing unit is based in a foreign location getting these car parts aren’t that easy in the long run. So repairing the damages becomes quite expensive and this raises the insurance price to a great extent.