A Brief Guide To The Cost Of Car Insurance

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

The cost of car insurance is influenced by various factors, with the type of vehicle you own playing a significant role in determining the insurance rates. Different types of vehicles come with varying levels of risk and potential for damage, which in turn affects the insurance premiums. For instance, if you own a 4-seater family car, the insurance cost is likely to be relatively lower as these cars are generally used for everyday commuting and are considered safer in terms of potential accidents or damage, leading to a reduced risk profile for insurance providers. On the other hand, if you own a pickup truck, you may have to incur higher insurance costs because these trucks are often used for transporting heavy loads and are subjected to frequent use, and face increased wear and tear. As a result, insurance premiums for pickup trucks may be higher to cover potential repairs from an American truck repair shop or a similar service center.

Previous claims

Individuals who have filed previous insurance claims within the last five years are often perceived as higher risks by insurance providers. This assessment is based on the understanding that individuals who have recently made claims are more likely to continue making claims in the future, which can result in increased financial liability for the insurance company. When a person has a history of filing claims, it can indicate a higher probability of being involved in accidents or incidents that lead to damage, loss, or injuries. As a result, insurance providers adjust their pricing structure to reflect the increased risk associated with insuring such individuals.

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.