What affects you car insurance premiums
There are three main factors that affect your car insurance premiums. Here we will give you a breakdown of them and a little bit of information on each one
Age and gender of the driver
Younger drivers are statistically more likely to have an accident that older drivers and young men are even more likely to claim from their insurance company. Car insurance premiums generally reduce as you get older but when you near statutory retirement age you may see your premiums start to increase.
Driving History
Insurance companies reward those who do not make claims on their car insurance via the no claims discount (NCD) which means the less you claim the less you pay for your car insurance. If you make a claim then your no claims discount will be reduced or cut altogether. If you change insurance provider, you can sometimes take your NCD with you to the new insurer. If you incur penalties on your licence then insurers may also increase your premium for these.
Where you live
Your post code will affect your car insurance premium either positively or negatively. If you live in a rundown neighbourhood then your car is more likely to be broken into or vandalised this will make your car insurance policy more expensive. This is simply because the risk to your car is higher, therefore the likelihood of you making a claim is higher and that makes your premium higher as well. You can reduce your premiums by parking in a garage or off the street.
Make and Model of Your Car
The more valuable your car the more repairs and replacement will cost and in turn this makes your car insurance premium more expensive. Small cars with low fuel consumption are in general the cheapest cars to insure, whereas high performance or modified cars are expensive to insure properly.
Other Factors
There are a lot of other factors that affect your car insurance rates including your annual mileage, whether you use your car to commute, and if you have additional drivers on your policy.
