If you’ve ever wondered why you pay more for your car insurance policy than a friend or family member, then hopefully this article will help you understand.
Don’t forget that every insurer is different, so it pays off to shop around when it’s time to renew your policy. You may be able to save hundreds of pounds by using a comparison website or insurance broker, such as chill.ie.
There are a range of factors that affect your car insurance policy and how much you have to pay. Here are five of the most important:
- Your age
Young drivers are generally considered to be higher risk, so if you’re in your teens or early twenties, you’re going to be charged more by insurers. As you get older, you should find that your premium drops.
- Where you live
Insurers look at the car crime rates in the area where you live, so if you’re based in an area where break-ins or incidents of vandalism are higher, you can expect to pay more for your cover. Having to park your car on the street is never ideal, so if you can keep it on a drive or in a garage overnight, this might help lower your premium slightly.
- Your profession
You should never twist the truth when you’re applying for insurance because you could find your policy is invalid if you ever needed to make a claim. Insurers want to know what you do for a living as some jobs are classed as being higher risk than others. For instance, mobile DJS, footballers, students and nightclub owners are classed as higher risk, whereas nurses, teachers and pilots are classed as low risk.
- How much your car is worth
Before you upgrade your car, you should always check to see how much your insurance is going to be. You might be able to afford to buy the car, but insuring it could be another story. Insuring a car that’s worth £20,000 is obviously going to cost a lot more than insuring one that’s worth £3,000 because the insurer would have to pay out a lot more if it ever had to be replaced.
You should try to steer clear of cars that have been modified as insurers will charge more to cover these.
- Your experience
The longer you’ve been driving for the better, especially if you’ve got several years of no claims bonus and no points on your licence. After all, insurers want to see that you’re a good driver.
We hope that this article has helped open your eyes to some of the factors that insurers take into consideration before they give you a quote for car insurance. Please remember to shop around and get the best deal you can.