Car insurance can be an annual headache for many of us, shopping around for the best quote or battling over the phone to stay with your current cover for a cheaper price. Insurance companies will create an insurance premium that judges how much of a risk you pose to them as a customer. If you are lower risk, you’re likely to have a lower premium.
Take a look at the Healthy Hideout’s top 8 factors that will affect your car insurance bill:
- Profession – Some insurance companies will treat certain professions with more caution, so if your travelling long distances, working anti-social hours or carrying passengers your premium is bound to be higher than normal.
- Job title – Without pre-judgement about your work environment heirachy, it’s important to note that certain job titles will equate to a higher premium. People who are more inclined to stay indoors with less travelling are bound to have lower price tags.
- Driving History – One of the most important factors – If you’ve been involved in many accidents or convicted for a serious motor offence you’ll almost certainly have to pay a much higher price for your cover. No-claims bonuses can really play importance with situations such as this.
- Drive time – The more time you spend driving your vehicle, the more chance you’ll be involved in an accident. If you can commit lower mileage on your policy, your premium will of course be lower.
- Car type – Many people don’t seem to realise that the type of car they drive actually effects the price of your policy. Brand new, popular or even classic cars can usually cost more to insure as they are considered more vulnerable to theft or repair. Engine size and power also affects your policy negatively.
- Where you keep your car – If your car is secure over night, your insurance cost will be greatly improved. If you keep your car locked in a garage, you’ll pay less than someone who parks their car on the street.
- How you pay – If you choose to pay your annual insurance policy in one lump sum rather than monthly installments, it will cost significantly less. Insurance providers will charge you interest for the privilege of spreading payments.
- Credit rating – Your credit rating will almost certainly come into play when purchasing an insurance premium. If you are in any way a liability for the provider to take on board your business, it’s more than likely that you’ll charged for the luxury.