It’s Car Insurance Day! That’s right, car insurance day…
Now whether you have been with the same company since cars were created, or you like an annual swap to try and save some pennies, there are all sorts of things that could affect your premium! Here are just a few…
It’s one of the highest-ranking factors that affect your insurance and unfortunately, there isn’t much you can do about it. Younger drivers tend to be quoted higher premiums due to less experience on the road. But don’t despair youth! As you clock up years (and no claims), your premiums should decrease!
If you live in an area with high theft or insurances fraud areas, chances are your premiums will be affected and not for the better. If you live in a rural area, your premium could be affected due to a high deer accident volume!
Type of Vehicle
You may have guessed now that a lot of these factors are based on statistics and this factor is no different. If people with the same time of car as you tend to have higher accident rates or have filed more claims, your premiums may reflect this. Additionally, features, safety test performance and cost of repairs may also affect your insurance.
A bit of an obvious one but the less you drive, the less likely you are to have an accident. Make sure you keep an eye on how many miles you do a year so you can give a more accurate figure – it could save you money!
Now this one you have a little more control over. If you are a safe driver and adopt good driving behaviours, you could qualify for better rates however, things like accidents, DUIs or multiple minor violations like lots of speeding tickets can hike up your premiums and make you completely uninsurable with some companies. It’s kinder on your finances if you stick to the rules of the road.
Insurers will generally want to know about your claims history going back between 3-5 years. If you have claimed, chances are your premiums will be affected but by how much depends on the claim. If you have lots of claims, or a few in succession, this could increase your premiums so if your car needs minor repairs, it’s worth thinking about covering the cost yourself instead of claiming!
Of course, this list is nowhere near exhaustive and there are many more factors that can affect your premiums. The best way forward is to drive safely and be honest when disclosing information to your insurance provider.
Anything you are unsure about, ask your provider!