Factors Affecting Your Car Insurance Premium

First-time car insurer: Factors contributing to your premium

Summary:

It's not debatable — you need insurance for your car. There are a number of factors contributing to your car insurance premium; here's all you need to know when taking out car insurance for the first time or when considering a new insurance provider.

Your car insurance premium is dependent on various factors which fall into three groups.

Personal Factors

Personal factors affecting your car insurance premium include your location, age, marital status and finances. Young, single people are deemed more irresponsible and therefore higher risk compared to people who are older or married. People who are older and married are also seen as more financially stable. Location is also a major influence on your premium because, naturally, living in a high crime area will increase the risk of your car being stolen.

Your driving experience is also a major influencer. More years behind your driver's license equates to more experience and a lower risk of getting into an accident. Your car usage is another factor used to determine your premium; business use tends to be insured at a higher premium than personal usage.

"While you may not be able to change your age, you can adopt habits like locking your car in a secure location to help keep your car safe and reduce your car insurance premiums."


The profile of the regular driver comes into consideration as well. Their demographics and risk factors are able to influence the premium. For example, if you insure your second car for primary use by an older woman (provided that she is the regular driver), your premium is likely to drop in price.

History and Habits

Your habits play a role in your insurance. Driving frequently through high-risk areas will increase your premium, but locking your car in secure, gated premises in the day and at night will likely lower it.

If you've had accidents previously or filed claims recently, your premium will increase because it indicates to your insurer that you are a high-risk client. The fewer accidents, the better – for you and your insurance provider.

Car Factors

Whether your car is high risk or not will influence your insurance providers and the premium they are willing to offer you. Make and model play an important role here, with certain cars being stolen more frequently than others. More expensive cars are also insured for more because it costs more to repair or replace if stolen.

Installing a tracker or having an alarm system are just some of the security measures that will ensure the safety of your car and reduce the premium you pay. These types of systems will deter people from stealing your car and increase the likelihood that it is recovered if it is stolen.

While you may not be able to change your age, you can adopt habits like locking your car in a secure location to help keep your car safe and reduce your car insurance premiums.

Complete the form below to get a quote comparison and make sure you are getting the best premiums for your lifestyle.

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