What is direct car insurance? It is car insurance that you purchase directly from the car insurance company rather than through a mediator, which is generally called a broker. Depending on your needs the direct car insurance can be a good option and as they also cover the physical injuries, collisions, and damages to cars due to different factors that would include theft. However there are certain things that you should keep in mind before you buy direct car insurance.

There is a myth that buying car insurance from companies saves lot of money and premium rates. However, this is not always true. The premium rates depend on a variety of factors. These factors ultimately decide the cost of policies you buy directly from a company instead of approaching a broker. The factors that influence direct car insurance are as follows:

The model of your car and its price are important factors to determine the cost of premium of direct car insurance. Expensive cars are more prone to theft. Hence this makes a risky proposition and insurance companies would hike the premium price even if you buy directly from them.

Where your residence is located. If your locality is prone to numerous accidents or theft, it could seriously hike up your rates. The traffic conditions, locality and accidents in the area help companies calculate the premium rate and the probability of claims that you may make.

It may seem funny but the marital status too determines the premium of direct car insurance. There are statistics which show that singles tend to be more reckless than married individuals. Therefore the insurance premium of singles tends to be higher.

The credit history plays a role in determining the premium rate but not to that extend as in the United States and the United Kingdom. Drivers with a bad premium payment history are often seen as risks and they are charged higher premiums even if policies are purchased directly from the company.

Driving records are another factor that would determine the premium. Drivers with a history of wrecks and reckless driving are charged higher premiums than those having a good driving history.

Claim record is another vibrant factor to determine the cost of the premiums of direct car insurance. Those who drive safely do not file claims frequently and they are at a low risk of doing so. Those with a poor driving history who make frequent claims for repairs are charged higher premiums.

Car driving distance is something that also determines the premium rate of direct car insurance. If you drive long distances, the probability of accidents is more, so high premiums are levied on your vehicle.