There are a number of factors that go into calculating your premium, and each company will weigh these factors differently. That’s why it’s important to shop around and compare rates before you decide on a car insurance policy. In this post, we’ll take a look at the top five factors that affect your car insurance premium.
Make, Model & Variant
When you’re looking for car insurance, one of the first things your insurance company is going to ask for is your car’s make, model, and variant. This is because the make and model of your car can affect your premiums. For example, a high-end sports car is going to cost more to insure than a family sedan. Your insurance company will also take into account the age of your car, as newer cars tend to be more expensive to insure. If you’re driving a classic car, expect to pay a bit more for coverage than you would for a regular vehicle.
Age of the Car
Your car’s age is one of the top factors that insurance companies consider when determining your premiums. The older your car is, the more expensive it is to insure, because there’s a greater chance that it will be in an accident. Insurance companies also take into account the make and model of your car. Some cars are just more expensive to repair, so your premiums will be higher if you have one of those cars.
No Claim Bonus
Your car insurance premium is partly based on your driving record. In other words, the better your driving history, the lower your car insurance premium will be. One way to improve your driving record is to maintain a good No Claim Bonus. What is a No Claim Bonus? It’s simply a discount you get for not making any claims on your car insurance policy. The more years you go without making a claim, the higher your No Claim Bonus will be. And that means a lower car insurance premium for you. So if you’re looking to save money on your car insurance, try to keep your driving record as clean as possible.
Anti-Theft Device
While all of the factors mentioned so far are important, one of the biggest ones is your choice of anti-theft device. Insurance companies love to see that you’re taking measures to protect your car, and that you’re not just leaving it vulnerable to theft. The most popular anti-theft devices are immobilizers and alarms. An immobilizer prevents the car from starting without the key, while an alarm notifies you (and the police) when someone is trying to break in. So make sure you choose an anti-theft device that’s right for you and your car. It could end up saving you a lot of money on your premium.
Where You Live Will Play a Role in Your Car Insurance Premium.
It’s no secret that where you live will play a role in your car insurance premium. The closer you are to a big city, the higher your rates are going to be. This is because of the increased risk of accidents and thefts. But it’s not just proximity to a city that matters. Your Zip code also has a lot to do with it. Certain areas are known for being more dangerous than others, and if your home is in one of those areas, your car insurance company is going to take that into account when setting your rates.
Conclusion
Your car insurance premium is affected by many different factors, some under your control and some not. By understanding what these factors are, you can work to control the ones you can and hopefully see a decrease in your car insurance premium.