Tuesday, 4 June 2013

Factors affecting insurance premium


The car and your usage

The type of car you drive affects your car insurance premium, as cars are rated according to insurance groups. This is set by the Insurance Group Rating Panel and is set from 1 to 20. When buying a new car, it is worth taking these ratings into account before you shop around for insurance for your car.
The number of additional drivers, and their driving history, also affects your premium, as does your occupation and your annual mileage. Put simply, the more you use your car and the further you drive, the greater the risk of incident, hence the higher premium.

Drivers on the policy

Additional drivers don’t have to drive up car insurance costs.  If you need to add another driver to the policy, it’s always worth sticking, say, a parent on your policy and then running an online search, as some car insurance companies might give a discount to acknowledge the experienced driver. However, do not add names of drivers if they will not actually be driving the car. Lying on your policy could result in it being void.

Types of cover

The final variable on insurance for your car is the level of cover you choose. Remember, the cheap car insurance premium may not provide the best level of cover for you. Compare third party only with one company to third party, fire and theft with another – it may only be a small additional investment, or even cheaper in some cases.

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