10 Factors that Effect Car Insurance Premium

10 Factors that Effect Car Insurance Premium:

Car insurance premiums are calculated using a wide variety of details given by the customer. The most basic information is the make and model of the car to be insured. Each factor can have a considerable positive or negative effect on the premium.In the UK, a scale of 1-20 is used to determine the relative relationship between a car’s make and model and the premium rate that is imposed on the owner of the car.
Newer models earn a higher rating as their value is more. Older cars have a greater chance of needing breakdown recovery services which can raise the rate of the premium.

Cars rated on the lower end of the scale (nearer 1) have a lower premium and cars that attract a higher rating have higher payments. The more powerful the car engine, the higher the rating of the car.

The area in which the car will be kept is another consideration for insurance companies. Areas that have a higher crime rate have higher premiums due to the increased risk of the car being stolen or vandalized.
If you are a female driver, you may be able to get a discount with some companies. Women have been statistically proven to make low cost claims, so they enjoy the benefit of lower premiums to reflect this.

If you are a young driver who has a second-hand car, consider only getting third-party coverage. It might be worth the risk for the amount you will end up saving. Trying to reduce the annual mileage is another way to reduce your premium. The more a car is driven, the higher the risk of it being damaged, and as a result the premium is higher.
Younger drivers suffer due to their lack of experience. The payment scale is very harsh on those who have had little time behind the wheel. One way to balance this biased scale a little is to ensure that, as a younger driver, you have a less powerful car that costs less in insurance. If you are one of a number of people on the same policy (such as a household policy on the same car), consider only allowing those above a certain age to be included in your policy. This will reduce the costs you incur annually.

If you are insuring more than one car, try insuring with the same company. This can earn you some discount. If it is a pool of company cars being ensured, take out a fleet policy to get a better rate.
If your car is expensive, fit an anti-theft alarm or tracker device to it. Approved alarms and immobilizers can significantly reduce premiums. Garaging your car is another way to reduce your premium.
Try to avoid claiming money from the insurance company for low cost repair work. Making a claim may deny you your ‘no claims’ bonuses for the following year (unless you have it protected) which will lead to a rise in your premium rate.
Paying excess is worth the risk if you are confident that it will be unlikely that you make a claim. This is a major cost-reducing factor in calculating premiums.

There are so many factors involved in calculating a premium that it is hard to give a rough estimate of how much car insurance could cost you. It is necessary for each individual to give their details to at least 2-3 insurance companies before they can get an idea of what sort of premium would be expected.
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