There can be a very large price difference between the most expensive and the cheapest auto insurance. But why? What determines the price of auto insurance? Can your premium get much higher overnight? What if you can’t find non owner sr22 insurance that fits your budget?

What determines the price of an SR22 Bond insurance?

The price of auto insurance depends to a large extent on the coverage chosen. A comprehensive insurance is naturally much more expensive than a car RC simple. But the price of auto insurance also depends on many other factors that you may or may not influence. Here is a summary.

Displacement and weight of your car

Large displacement cars, like sports cars, are much more powerful and can, therefore, cause more damage than small city cars. If you opt for a smaller car, your premium will be lower.

Private or professional use

Age

As young people are more often involved in accidents, many insurers charge a higher premium to young drivers than to experienced drivers.

Home

In a busy city, where the number of accidents is much higher, you generally pay more than in a village with little traffic.

Bonus Malus

The principle of the bonus-malus works as follows: if you drive for a year without causing an accident, your degree drops.

Previous claims

If you change insurers, your new company generally takes up the bonus-malus degree applied by the old one. This indicates the number of accidents you have had in the past 5 years.

Number of kilometers per year

The number of kilometers driven each year can influence your premium. Some insurers will give you, for example, a reduction if you drive less than 10,000 km per year. Other insurers offer insurances per kilometer, the premium of which is calculated on the basis of the exact number of kilometers traveled.

Insured value

The price of omnium insurance in addition to the content of the guarantees also depends on the insured value. This value determines the amount of compensation in the event of total loss. You have the choice between compensation in real, conventional or approved value.

Payment period

Do you prefer to pay your car premium annually, quarterly or semi-annually? Some insurers will charge you extra for this service.

When does my car premium decrease or increase?

Increase in your premium after an accident

If you cause an accident at fault, your bonus-malus degree increases, generally leading to an increase in your premium and a not very cheap SR22 bond attached. This increase varies from one insurer to another. With some insurers, the price is multiplied by four after an accident. Find out about the system applied by your new insurer before signing a contract. The cheap premium that prompted you to change insurers could, in the end, prove to be very expensive.

Lower your premium after one year without an accident

You drive for a year without having an accident at fault, your bonus-penalty decreases and so in principle your premium too unless you are already at the lowest level.

Rate increase after indexation

Auto insurance is not indexed annually. The prices are nevertheless regularly adjusted. If you do not agree with the change, you have the option of terminating your contract.

What happens if the insurance premium is too much high?

Can’t find affordable auto insurance? First consider why your premium is so high and whether you can change it. So replacing your sports car with a city car can be a good idea. If you cannot take out third party auto insurance with any insurer due to extremely high prices or if you have been refused three times, you can contact the Pricing Office.

How does non owner sr22 insurance work?

First, the hiring of non owner sr22 insurance must be done through an insurance broker, who will help you choose the most suitable service for your profile. The auto insurance is built from the profile informed by the customer, based on car use behavior, characteristics of those who drive and what kind of coverage you wish to hire.

Basically, insurers offer these types of auto insurance:

• Basic coverage
• Comprehensive coverage
• Additional coverage
• Optional civil liability of vehicles
• Personal passenger accidents

In auto insurance, for the definition of the “profile”, some questions are asked.

Answered the questions, each insurance proposal represents a risk, which can be higher or lower depending on the characteristics of the person who wants coverage. That is, the profile refers to the size of the risk that that proposal offers and that will be accepted or not by the insurance broker.

However, the value is directly linked to the definition of the profile, because the greater the statistical risks, the higher the insurance price can be. Normally, it is possible to divide the total amount in some installments, but only after the payment of the first installment does the vehicle begin to be insured. Thereafter, the insurer will be committed to paying you compensation if the insured asset, your vehicle, suffers one of the claims provided for in the insurance policy.

Insurance policy is the name given to the insurance contract. The insurance policy is the name given to the contract. There, the contracted coverage is recorded, as well as the value of the “premium”, the details of the insured and the insured, in addition to other information.

In addition to the payment of the “premium”, the insured must also fulfill other obligations: in claims with partial loss, there is the payment of the insurance deductible, for example. In addition, there are a number of obligations of the insured, which is a set of conducts that ensure that the insured will not take more risks than normal and, thus, does not lose the right to his indemnity.

It is essential to know each of its clauses before signing the contract. In case of doubts about the price and coverage of the insurance policy, it is very important to talk to your insurance broker. He is the professional dedicated to offering the best proposal, with the profile best suited to your needs and lifestyle.

The types of SR22 Bond coverage and services

There are several types of Certificate of Financial Responsibility (also called SR22 Bond) and services, which are in different modalities aimed at different audiences, and it is up to the customer to decide which type of protection is most suitable for their profile and use of the car.