There are multiple factors that will affect your car insurance premiums, some are obvious and others are not. We've listed the top 10 factors that can affect your car insurance premium which can help you understand exactly how the insurance companies will either lower or increase your premium.
- AGE OF THE DRIVER
One of the biggest factors when assessing your insurance premium is the age of the drivers who will be driving the vehicle. It is more likely that the younger you are, the higher your premium. This is due to the fact that younger drivers generally have less experience in driving than someone who is older.
- YOUR NO CLAIMS HISTORY
Drivers who have more years of driving without making a claim on their insurance usually benefit from what is known as a "no claims discount". The more years you have driving without having claimed for any accidents, the lower your premiums will be.
- YOUR AREA
The area you live in also contributes to the assessment of your car insurance premium. Areas with a low crime rate are likely to be beneficial to your premiums by making them lower. This is the opposite for areas with a high crime rate as there is an increased risk that there will be damage to your car, therefore your premiums will likely be higher.
- YOUR CAR AGE, MAKE & MODEL
The more expensive and modified your car is the likelihood your premiums will be higher to compensate for any claims made. An expensive car will likely cost more to fix in the event of an accident, whereas a cheaper car will be less expensive and may reduce your premium costs.
- WHERE YOUR CAR IS PARKED OVERNIGHT
You can save a huge amount on your car insurance by parking your car in a locked garage overnight. This is the safest option and will likely reduce your premiums. The next best thing would be in a driveway and then on the road outside your home.
- YOUR ANNUAL MILEAGE
Obviously the more you drive your car, the more chance you have of being part of an accident. Your annual mileage will play a significant role in determining your insurance premium price. The lower your annual mileage the lower your insurance and vice versa.
- HOW YOU USE YOUR CAR
When assessing your insurance premium you will be asked how you use your car. Using your car for social purposes and a low annual mileage will likely result in a lower premium. Whereas if you use your car to commute to work each day will likely increase your premium.
- ADDITIONAL DRIVERS
You may not be aware of this but adding additional drivers to your premium may actually reduce your overall insurance costs. Adding a driver with more driving experience to your insurance policy will likely reduce the costs and is a common way to reduce the price for teenage drivers.