A Brief Guide To The Cost Of Car Insurance
Sep 21
In this short car insurance guide you will find information on the way insurance companies determine the price they charge along with some tips on finding cheaper car insurance than your current policy.
Type of car
All cars are groped for insurance purposes into one of fifty categories. The higher the group the more expensive is the insurance. The groupings take account of a number of factors including the cost of repair, the time of repair, the value of the car when new, performance and security. Tip: by choosing a car from groups 1 or 2 will reduce insurance costs.
Previous claims
People who have made previous claims in the last five years are considered to be higher risks and they will be charged more.
Driving offenses
If you have any points on your licence then this will be used against you, even if it is for a minor speeding offence. More serious convictions carry steeper penalties. Tip: stay on the right side of the law.
Your annual mileage
The more you drive the more likely you are to have an accident. If you restrict your mileage to say less than 10,000 miles you can often reduce your premium. Tip: drive less, walk more.
Your job
Some jobs are associated with a higher risk of making a claim. Publicans, chefs, entertainers, and professional sportsmen and women along with builders are considered to be high risk. Tip: change your job if you must.
Improve vehicle security
Certain security devices such as trackers can reduce your premium. Tip: check out if it is worth the cost of having one installed (though probably it isn’t).
Value and age of your car
The more valuable the car, the more expensive it will be to insure. Tip: buy a cheaper car.
What you use your car for
The car usage categories are ‘Social, domestic & pleasure’, ‘Social, domestic, pleasure and commuting’ and ‘Use in connection with your business’. The first is the cheapest, the last the most expensive.
Where you live
If you live in somewhere like Birmingham or Newcastle where car crime is high expect to pay a lot more than if you live in a more rural location. Tip: move to the sticks.
Where you park
If you leave your car on the road at night then you will have to pay more that if it is locked away securely. Tip: get a garage or if you have one clear out the junk and use it for parking your car.
