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car insurance - would you qualify?
Driver
Characteristics
Insurers only
extend cover to those drivers whom they consider good risks.
Driving history and age are two of the most important factors in
their consideration, but there are others as well. Pay-as-you-go
policies can be particularly useful for younger drivers.
Driving
History
A motorist's
driving history is paramount in the decision to extend cover. It
serves as an indication of how a motorist will behave. Safe
drivers get rewarded – as with their no claims bonus – and
unsafe drivers may not get cover at all. Insurers allow some
offences and points on one's licence, usually a certain number
within a 3 or 5-year period. They may exclude motorists with any
convictions for car theft or driving under the influence of
drugs or alcohol, for example. They will usually list how many
points and offences they find acceptable, so motorists with
less-than-pristine records may want to check.
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Age
Young drivers
are very risky to cover because they get into the highest
proportion of accidents, especially serious ones. Young drivers
may pay higher premiums, but pay-as-you-go cover is at least
available to them. Many insurers refuse to cover drivers under
age 21 for annual or short term policies. It's impossible for
drivers between 17 and 21 to get temporary cover. For those
young drivers who may need cover for shorter time periods,
pay-as-you-go cover may be a good option. Pay-as-you-go policies
cover drivers as young as 17, so drivers could purchase a month
of cover for their short-term needs. It's not a perfect
solution, but at least it allows young drivers to get behind the
wheel. Insurers have age restrictions – perhaps age 17 to age 90
– which they list on their websites.
Other Factors
Insurers take
into account many other factors when they decide to offer cover
and set premium prices. These factors include location, type of
car, whether the car has been modified, or occupation, among
others. Some insurers exclude certain occupations – those
occupied in the motor trade, for example. Gender is another
factor. Women are statistically safer drivers, so their premiums
are generally lower than men's. Each insurer has a different
formula for determining eligibility and premiums.
Duty of
Disclosure
Motorists must
inform insurers of any facts material to their ability to extend
cover. This includes any motoring offences or convictions.
Failure to disclose such material facts may result in the
invalidation of the cover. In such a case, the insurer would not
have to pay out the claim and the motorist would be responsible.
Motorists should ensure they don't find themselves in violation
of their duty of disclosure because the consequences may be
quite unfortunate.
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