The Unexpected Factors Driving Up Your Car Insurance
Car insurance premiums continue to rise. In addition to fuel and maintenance costs, insurance quotes can be enough to deter people from driving in the first place! However, do you know which factors determine the cost of your premium? Aside from license points and demographics, what do you need to do to avoid unnecessary hikes to your car insurance?
Having multiple drivers insured on the same vehicle will influence the cost of your premium. It is worth bearing this in mind when getting a quote. The age and profile of your additional drivers will influence the cost, but not always negatively.
In some cases (for example, where the main driver is young and inexperienced), adding another, more experienced driver will actually reduce your premium. Ask for quotes with and without the additional driver(s) and see what happens!
Your insurance premium is likely to be higher if you are driving away in a brand new vehicle. This is particularly true for both young, inexperienced drivers and elderly drivers. Buying a brand new car comes with its benefits - the car is customisable and carries no wear and tear from previous ownership. However, the aforementioned age profiles, in particular, are more predisposed to having an accident. They also take more time to adjust to a new vehicle. If someone else in the family could benefit from using the vehicle, adding them to the insurance could help to reduce the cost.
Unfortunately, as soon as a brand new car is driven off the garage forecourt, substantial depreciation occurs. Therefore, if your car is written off, you may not be in a position to buy a new one. However, GAP Insurance covers the difference in value of the vehicle from the date of purchase to the time of the accident. This will help you to bounce back from losing your car.
Are you aware of what car accessories are included with the cost of your insurance premium? Some providers include accessory cover by default and will remove at your request. It may be worth the cost if you have a high-value stereo system or sat nav in your car. Otherwise, you can reduce the price of your insurance by taking away the insurance and being careful to remove expensive accessories from the vehicle when parking.
When calculating your car insurance premium, providers sometimes check your credit score. The presumption is that those with a poor credit score are more likely to make a claim. Your credit history has more financial implications than you previously may have thought!
So often we simply click ‘accept’ when presented with terms and conditions. However, in the case of car insurance, it really is important to check exactly what you are buying. Being aware that there are factors (and more than those listed!) that affect the price of your car insurance premium can enable you to be a savvy buyer. Ask the right questions, and make carefully considered decisions with regards to what you need your insurance to cover. When asking for a quote, ensure you eliminate any unnecessary extras.