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Factors affecting the Cost of Car Insurance

Nowadays many external and internal factors affect the buying of car insurance. With so many car insurance policies available, it is wise to know what all is included in the policy. In fact this information makes any particular car insurance policy expensive or cheaper. Let us discuss on which factors your Car Insurance Cost depends and have greater influence on it:

1. Litigation - The cost of litigation is at its peak nowadays. Generally in this the car insurance policy provides protection to you in the event you cause an accident and hurt somebody else, or damage property. In case of serious accidents, drivers often claim an amount for personal injury which usually is much bigger than it used to be few time back. And the adverse part for the insurers is that courts handling such claims often favour the claimants with significant awards.
2. Uninsured drivers - According to one research carried out by pollsters Mori it has been found that there are more than one person in every 10 drivers who is not insured which definitely adds discomfort to an uninsured driver involved in a major accident, leading to an annual premium of around £30. It has been estimated that accidents caused by uninsured drivers last year have cost the Motor Insurance Bureau about 500 million. Usually you have to face a long battle to have your costs paid when you get involved in an accident with an uninsured driver. In that situation your premium gets higher because you become desirous of using your car insurance policy.
3. NHS costs - Nowadays it has been seen that the accident and emergency departments of National Health Service (NHS) can also claim for the cost of treatment including the ambulance costs from the insurance company. Also in case you get involved in an accident in which you are being guilty then all the bills will get paid by the opposite party’s insurer. However your Car Insurance company will be required to do the formalities in case you are found to be guilty, which would be quite an expensive affair.
4. Stock markets - You might be wondering what the role of stock markets is in Car Insurance claim. Well few people believe that insurance companies usually put the money garnered as premiums in the stock market which acts as an investment tool for them. This practice by the insurers is often visible in case of home insurance where any calamity or tragedy can lead to huge claims. Because the insurer is required to provide the money to the victim at the time of accident which happens very rarely, so it gives an opportunity to them to invest the money in stocks.

AA Insurance	Admiral	AIG	Argos
Asda	Atlas	AXA	Barclays
Bell Direct	Bradford and Bingley	British Gas	Budget
Churchill	CIS Insurance	Classic	Cornhill Direct
Diamond	Direct Choice	Direct Line	EasyMoney
Egg	Elephant	Endsleigh	Esure
Express	Fortis	Halifax	Hiscox
HSBC	Key Connect Insurance	Kwik Fit Insurance	Ladybird
Lancaster	Legal and General	Liverpool Victoria Insurance	Lloyds TSB
Marks and Spencer insurance	MG	More Than	Motor Quote Direct
Motor Trade	Nationwide	Natwest	NHI Services insurance
Norwich Union Direct	Post Office	Privilege	Prudential
Quinn Direct	RAC	Saga	Sainsburys Bank
Scottish Widows	Screentrade	Standard Life	Swiftcover
Swinton	Tesco Insurance	Virgin	Yes
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