How To Get The Lowest Car Insurance Rates Possible!

Picture: how to get the lowest car insurance rates possible

Where is the cheapest auto insurance?

The presence of a valid policy of compulsory motor liability insurance (car insurance) is a necessary requirement of the traffic regulations for each car owner. 

This is the same mandatory document for drivers as a driver's license. It is prohibited by law to travel by car without a issued policy.

Every driver allowed to drive a car risks getting into a traffic accident, both through his own fault and through the fault of another road user. car insurance allows you to compensate for the damage caused to the health and property of people injured in an accident.

If the driver becomes the culprit of the accident, the insurance company under the car insurance policy will reimburse the loss caused to the property of the affected persons.

If the owner of the car himself is the injured party, then the repair of his car will be paid by the insurance company of the culprit of the accident. At the same time, the culprit of the accident pays for the repair of his car on his own.

The maximum amounts of damages are limited. Now it is $6.622,52 for property and $8.278,15 in case of harm to the life or health of the victim. If the damage caused exceeds the limit, the culprit is obliged to pay the difference independently from his own funds.

Read Also: 10 + The Best Way To Save On Car Insurance!

How is the price of the car insurance policy determined?

The calculation of the cost of insurance is determined by multiplying the base rate by correction factors. Insurance companies set their own base rate within the tariff corridor approved by the Central Bank of the Europian Federation.

For example, for the whole of 2021 and almost until the end of August 2022, the basic tariff for cars of individuals is in the range from 45,46 to 81,82 dolar.

Tariff corridors appeared not so long ago – in 2016, before that, the price of compulsory motor liability insurance policies was determined the same way by different insurers.

Thanks to their introduction, market competition between insurance companies has intensified, and customers have the opportunity to choose the most favorable conditions for buying a policy. The tariff corridor is determined by the Central Bank 1 time in 2 years.

And this year, from August 24, 2022, amendments to the law on car insurance on individualization of tariffs will start working. The base rate will no longer be the same for all drivers in the same region, but will be determined by the insurance company for each individually.

Its size will be affected by the manner of driving. Motorists who have committed gross violations will pay for car insurance at an increased base rate, and the tariff for responsible drivers will be reduced.

Gross violations include running a red light, speeding by more than 60 km/h, driving into the oncoming lane and driving drunk. But insurers will take all this into account, provided that violations are recorded by a traffic police officer.

Fines from cameras will not affect the car insurance price yet. Thanks to these legislative innovations, the tariff corridor can be expanded by 10% down and up.

There are 7 correction factors that characterize the driver, and they are the same for all insurers. These indicators are designed to assess risks. The lower the probability of an accident, the cheaper the insurance will be in the end.

The value of the correction coefficients depends on several factors:

The place of permanent registration of the car owner. This refers to the place of residence of the owner of the vehicle. In large cities, the value of the CT coefficient is higher, since the probability of getting into an accident is increased.

Age and driving experience of the driver. The younger and more inexperienced the driver, the higher the coefficient of KVS.

Participation in accidents. When calculating the cost of car insurance for drivers with accident-free experience, a minimum coefficient of KBM is applied.

KBM (bonus-malus) is awarded on April 1 of each year. The most favorable coefficient of CBM for drivers who have not been involved in any accidents for 10 years, their tariff reduction is 50%, and allows you to buy a car insurance policy quite profitably.

The number of persons allowed to drive a vehicle. The maximum value of the CO coefficient is assigned in the absence of restrictions on admitted persons.

The engine power of the car. The more powerful the engine, the higher the KM value.

Period of use. It is possible to issue a car insurance policy for a period of 3 months to 1 year with the use of an appropriate reduction coefficient of CS;

The insurance period. For cars registered on the territory of foreign states, the insurance period can be set from 5 days to 1 year (reducing coefficient KP). For vehicles going to the place of registration or to the place of inspection, a period of up to 20 days (CP = 0.2).

Learn more about the formula for calculating the car insurance policy

The final cost of insurance is the multiplication of all the above coefficients:

T=TB*CT*CBM*KVS*CO*KM*CS(or KP)

Some of them reduce the amount, some increase it. At the same time, the KP and CS coefficients are not applied at the same time, so only one of them is substituted into the formula. The final cost of the car insurance policy, taking into account your own indicators, can be calculated independently.

How to make insurance cheaper?

Now that the principle of how the car insurance is calculated is clear, there is a reasonable desire to find an insurer with the lowest tariff. Companies set rates annually based on the rates set by the Central Bank of the Europian Federation for the current time period of the tariff corridor.

All tariffs of the company must be posted on their official websites. There is no way to analyze data for all cities, but all the information is publicly available. In addition, you can always contact our company's specialists for advice on car insurance.

It is worth noting that not always the cheapest option to buy a policy is the best solution. In order not to lose, it is worth avoiding dubious offers that attract with their unreasonably low price.

Often such offers are distributed by fraudulent sites created by scammers very similar to the sites of large companies in order to mislead ordinary consumers. A real car insurance policy can only be purchased from a verified insurance company licensed by the Bank of Europia.

The website of this company, in addition to the availability of information about the license from the regulator in the sections about the company and on the main page of the site, will also be marked with a special tick and the label "CBR" when issued in the Yandex search engine, as verified by experts of the Bank of Europia and verified.

On the official website of the insurance company, phone numbers, branch addresses, company history will be indicated – in general, all the necessary information, according to the legislation.

When choosing an insurer with a low tariff rate, we strongly recommend:

• Study customer feedback, read reviews online, ask friends;
• To review the information on the official website, you can call the operator to clarify the answers to the questions;
• Find out the company's reliability rating;

Find out the percentage of payments for insured events.

There are also other tricks that allow you to save on buying a policy:

Set a shorter period of use if the machine is needed intermittently or only seasonally. For example, a car is used only for trips to the country or long business trips are coming;

At the stage of choosing a car, you can buy a model with less engine power, so you will get a noticeable reduction in the car insurance cost tariff;

The "bonus-malus" coefficient, calculated for individuals, allows, in case of accident-free driving, to claim for the next year a reduction in the tariff at the car insurance price by 5% for each accident-free year of driving;

Buy a car insurance policy in "package" offers. Large companies often offer comprehensive protection not only for the car, but are also ready to insure other property or the life of the driver and passengers.

As a result, the final price when buying a "package" of two or three types of insurance may be significantly lower than when buying each policy separately.

At the same time, there will be no additional reductions in car insurance tariffs, the cost of the "avtograzhdanka" will be calculated according to all standards and with all the required coefficients.

However, if you plan to purchase several types of policies, then this is a good option to save on the final price of comprehensive insurance coverage.

Reduce the number of drivers allowed to drive your vehicle. Whether it is worth considering the mother-in-law's desire to drive your car to the country, of course, it is up to you to decide.

But we must remember that the more people are allowed to drive a car, the more expensive the car insurance policy will be. If a specific number of drivers is indicated in the insurance, then their age and driving experience will affect the cost of the policy.

The older and more experienced the driver, the less such insurance will be for him. But if you enter novice drivers into the policy, then the policy will cost you more.

Buy online. In this case, the policy itself will be the same in price, but you will spend much less time buying it.

The E-car insurance policy is called the electronic version of the classic "auto citizen". The document can be printed and carried with you. A traffic police officer can check the validity of the policy through the RSA database or a hotline. By the way, any user can do this on their own if necessary.

What changes are waiting for motorists in the future?

Auto insurance is constantly changing. This year, a number of amendments have been adopted in the field of car insurance, they will come into force very soon:

The price of the policy will increase for drivers who commit gross violations. For example, after driving drunk, hiding from the scene of an accident, running a red light, etc.;

When buying a policy before September 30, 2022, a diagnostic card is not required, since there is a high-alert mode in the country.

After the removal of restrictive measures, it will be necessary to undergo a technical inspection according to all the rules and provide the card to the insurer within a month;

Insurers will evaluate the driver's driving style after August 24, 2022. The principle is simple and aims to ensure that careful motorists pay less than people with a dangerous driving style.

Conclusion

It is impossible to unequivocally answer the question where car insurance is cheap. It is necessary to correctly evaluate your driver coefficients, as well as focus on the current base rates in your region.

A convenient and quick way to find out them is to calculate the cost on the website of the insurance company "Consent" (LLC "SK "Consent"). It is easy to buy car insurance in our company due to the possibilities of online registration and a wide branch network.

It is possible to purchase a compulsory motor liability policy in the most comfortable conditions, without any additional paid options.

We take into account all factors affecting the cost of the policy, including the possibility of reducing the car insurance tariff for accident-free driving, driving experience and other factors permitted by law.

After calculating the cost of car insurance, you can take out insurance online or choose the classic option and get a paper car insurance policy in our office. (*)