10 Factors That Affect Your Car Insurance
Vehicle insurance is a legal requirement and driving uninsured is a criminal offence. But the level of insurance that you can choose varies. Generally, it is not worth scrimping on vehicle insurance; it is, after all, there to protect you and others. We look at the factors that affect your insurance premium and what you can do to help reduce the costs.
Age, Gender and Marital Status
There is no gender and age equality when it comes to vehicle insurance! Young drivers are stung with insurance premiums more than twice that of older ones, and males get hit harder than females. The logic is that young males tend to be more reckless than females. Whether or not we agree, the stats speak for themselves. It’s not all bad news for the men; older women tend to have more minor incidents than men, so their premiums tend to be marginally higher.
Location, Location, Location
Insurance premiums are all about the statistics. Most traffic collisions happen within a 3-mile radius of home. Therefore, the more densely populated your home area, the higher your insurance premium. As unfair as it seems, this is based on facts: if more people live near you, you are more likely to be involved in a collision or subject to theft.
How Far, and Where, You Drive
This may seem unfair, but when you think about it, it’s pretty logical. The more miles and hours you are likely to spend on the road, the more likely you are to have an accident. Likewise, if you commute using your car, you will be driving at rush-hour, when there is more traffic and, you guessed it, a higher probability of being involved in a prang. Some insurers take your annual distance and car use into consideration, meaning lower rates for social drivers, but higher premiums for commuters.
Everything about a car is considered when calculating insurance premiums. Make, model, age, engine size, safety, fuel, transmission and value all impact on - you guessed it – the statistical probability of being involved in a collision, as well as the average pay out. If your car costs more to repair, your premium will be higher.
Your Driving History
Points on your licence, previous claims, driving convictions and no-claims bonus will all be considered when you are quoted for insurance. It goes without saying that, the more angelic your driving history, the lower your premium will be. For that reason, if you do have a no-claims bonus, it is worth protecting it.
By driving carefully and responsibility you can not only help to reduce your insurance premium, but you can keep yourself, your passengers and the public safer. If you want to refresh your driving skills, why not consult a driving instructor for a booster? You will drive more safely as a result, and it could even help to reduce your insurance.