Posts Tagged ‘cars with sentimental value’

Often when we consider car insurance we only think of a single specified vehicle and the insurance for that car.

The best about car insurance premiums is that there is no “one size fits all” – and every single client and his vehicle have different characteristics which affect the payable car insurance premium!

Different characteristics and different risks of vehicle use

Even if twins were to be of the same gender and drive the exact same make of vehicle, they might have to pay different car insurance premiums. There are simply too many other variables such as:

- The area where they drive and risks to both accidents and crime in that area
- Where and how they park the vehicle
- The occupation of the driver and the purpose of use of the vehicle
- The distance that the vehicle is driven
- The driving and accident record of the driver
- The characteristics of other regular drivers of such a vehicle, etc

Multiple vehicles have different characteristics and purposes of use

In many households we find more than one vehicle. These vehicles are seldom similar in make and value – and even less similar in purpose and use. We often find a more expensive “long distance” vehicle and a smaller, less expensive “city shuttle”.

The more expensive vehicle is more likely to be used on the long and open road, travelling farther and driven mostly by the head of the household. It should resemble a cleaner vehicle owning the the number 1 spot in the enclosed garage at home!

The smaller vehicle is more likely to be driven by everyone – and often will also be the vehicle to be entrusted with the young drivers at home. This vehicle will seldom travel the long distances – and used more often to get in-and –out of the city. It might also be parked outside the house and not in the enclosed garage…

It should be clear from this brief illustration that these vehicles will differ significantly in the car insurance premiums required to insure them!

Knowing your options to insure multiple vehicles

In making financial decisions such as the best car insurance – the best advice to follow is getting to know your options. There is only one way to decide on the best car insurance – and this is to compare different options with one another.

We would like to alert vehicle owners to a few aspects that they should be aware of when getting to know their options.

- Insurance products for multiple vehicles

Many car insurers will reward clients for having more than one vehicle on the same policy with such an insurer. They might offer to provide significant savings not only to have more than one vehicle on your short term insurance policy –but also to add your household insurance etc.

You might like to test this by requesting quotes from several insurers with separate policies and where the vehicles are combined within one policy.

- Significantly different vehicle characteristics requires closer investigation

It might be important to consider that the unique characteristics of vehicles might make it more costly to combine these vehicles on one policy. These could include:

- The one vehicle is a classic car/ antique or special vehicle
- The one car could present significantly higher risks on account of the purpose of use or characteristics of the driver.

It might well be possible to find cheaper car insurance for one vehicle at a specialist insurer – an insurer that specializes in sports/ classic cars, 4×4 vehicles etc

- Pay As You Drive car insurance for Reduced Travelling

If one of your vehicles only travels short runs – you would need to consider a Pay As You Drive car insurance product. There could be significant savings on insuring such a vehicle if it is only ensured at a premium for the distance that you drive. This is also called Distance Based Car Insurance, Usage Based Car Insurance and Telematics Based car insurance.

Conclusion and Advice

We would like to urge vehicle owners to get into the habit of comparing car insurance offerings. Car Insurance companies are highly competitive and are asking you for the opportunity to offer a quote. Requesting these quotes will allow how to Know your Options.

You will only find the best car insurance for multiple vehicles by making an informed decision. Consider different options presented by different providers. Rather take an hour or two extra to make the decision that will be both affordable and the correct decision!!