Vehicle owners may have often noticed that their prices for cheap car insurance are not the same as their parents or friends pay for policies. They might have also observed that even though they have the same car and similar personal usage and several other conditions, the premiums still vary across insurers. There are various factors an insurer considers while fixing the premium. Some most common factors are known to vehicle owners. However, many other factors affect car insurance policy prices and are known to the specific insurer alone.
You would benefit a lot from knowing the essential factors that affect your vehicle insurance premium. Having this knowledge may help you lower the premiums considerably. It also helps you while making a comparison of various policies of car insurance online. However, you still need to give accurate information about what an insurer asks you in order to receive an accurate quote. Then, compare car insurance quotes and purchase an affordable policy.
This article highlights a few of the common factors that potentially affect your policy premiums that are worth considering while you make buying decisions.
If you are a young driver below the age of 25, you may have to pay more. Young drivers belong to a high-risk category of drivers, according to insurers, which is why buying a policy may be a relatively costly affair for them. Experienced and older drivers are usually charged less.
As you cross 25 years, the insurers may reduce your premiums, as then you will be seen as a much more experienced driver than when you were in your teens.
It is a fact that young drivers need to shell out more money on their vehicle insurance premiums. And if the young driver is a male, they may have to pay even more. The reason for this is that males are statistically more likely to get into car accidents. In carrying a higher risk of an insurance payout, the insurer fixes premiums appropriately.
The area where you live is one of the determining factors of your car insurance premium. Suppose the place you live is classified as a zone popular for vehicle theft or enormously vulnerable to natural disaster events like floods, bushfires, and storms. In that case, a policy may cost you more. Also, if you don’t park your vehicle in the garage or have no security features incorporated in your car, then expect high premiums. A comprehensive insurance cover will most likely suit your needs.
Replacing a classic/customized car is difficult compared to the regular cars readily available in the market. In the former case, purchasing an agreed value policy makes sense. However, in the latter case, buying an agreed value or market value policy may make little difference. Your policy premium will be impacted depending on what option your choose.
Some insurers offer a “pay as you drive” policy, so vehicle owners who rarely drive can make use of it. Check with the insurer if they have an offering like this.
If you share your ride with your family members or friends and want to list them as additional drivers on your policy, then your vehicle insurance premiums may go up. Mainly if you list a young or an inexperienced driver or someone who has made claims in the past.
While these are the common elements that may affect your cheap car insurance premiums, there are many other factors an insurer considers, like your own claim history, including the general pattern of claiming etc. With third party car insurance everywhere these days, the entire process of comparing and purchasing a vehicle insurance policy is hassle-free.