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Month by month car insurance - would you qualify?

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.

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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