You naturally become skeptical when you are quoted a cheap insurance price because it seems too good to be true. Consequently you may question the quality of cheap insurance. Cheap insurance does not necessarily mean low quality insurance; in fact it can indicate an excellent value for money.
Competition
There are hundreds of insurance providers in the market; the Association of British Insurers has more than 400 member companies that cater to more than 90% of insurance business in the UK. The UK insurance directory also features more than 800 insurance firms, brokers, agents and independent providers. With such a wide variety of choices, competition has become aggressive, prices are being slashed and many benefits are obtainable. Even top of the line insurance companies such as Churchill, Direct Line, Norwich Union give attractive discounts.
Value
When you are getting a low insurance quote, investigate whether you will be getting your money’s worth. Often a lower premium price means that you are not able to avail many benefits. For example, you can choose Norwich Union if you are under 21 years of age and have a budget of £700-£1500 and Norwich Union offer approximately £600 worth of auto insurance for third party fire and theft car insurance policy. This includes the complimentary car and all legal expenses. Endsleigh offers good value for money for travel insurance, at almost half the price of the closest competitor.
Premium Factors
The price of your insurance premium is subject to many key factors.
Health Insurance - The premium for health insurance is influenced by the rise in the prices of drugs and new treatments. It is also influenced by age, quality of life and lifestyle choices. For instance, if you have been a chain smoker for a long time, your premium will be higher; but if you are a fitness freak, your insurance premium will be lower.
Life Insurance
Life insurance is affected by many factors such as your profession, current health status, health issues and family history. If you have a dangerous job such as a stunt man or an electrician, you are considered very high risk and your premium price will be on the high side. Health issues like chronic migraine, asthma and sinusitis affect insurance cost. If your family has a history of diabetes, arthritis, heart disease and schizophrenia, getting cheap insurance will be difficult.
Pet Insurance
Pet insurance premiums are influenced by many factors such as breed, type of pet and location of your veterinarian. Cats and rabbits are cheaper to insure. Rare breeds of pets such as tarantulas, snakes and monkeys have expensive insurance premiums. For a pure breed of pet, premium rates are higher. Veterinarians who have their offices in central London will factor in a high priced pet insurance.
Auto Insurance
Auto insurance is based on your address, gender, age, driving history, profession, engine size and vehicle cost. Young drivers are more accident prone therefore they have to pay a higher car insurance premium. Women are more cautious while driving and hence are offered lower premiums. The more costly your car, the higher your insurance premium will be. If your car has a powerful engine it is more liable to be involved in a serious accident. This can lead to severe damages and result in expensive repair costs, so you have to pay a higher premium. The less you use your car to go to your workplace, the less insurance you will have to pay. Carpooling saves money.
Right for You
You will get your money’s worth with insurance without compromising quality. If it means paying extra pounds with an assurance of quality service, you should opt for such insurance. On the other hand if you have are getting a good deal on your insurance policy along with benefits, you should not hesitate in opting for it. |
