The Wealth Room

Short-term insurance 101

The more you know about insurance and how the industry works, the better prepared you will be, and the more money you can save. The following are key factors that insurers use to determine the price of car insurance: • Age: If you’re young, your risk of being in a vehicle accident is statistically much higher. You can’t do anything about your age, but some insurers may penalise you less than others. • Claims history: Safe drivers are rewarded with lower insurance premiums. Your history of making claims will directly affect the cost of your insurance. The more you use insurance, the more your insurance will cost. • Credit history: Insurance companies have determined that there is a direct correlation between your credit history and your risk. • Use of vehicle: The