What drives the cost of car insurance?

f you’re interested in saving money on your car insurance (and, let’s face it, who isn’t), it’s worth getting a handle on the various factors that affect the price of your car insurance policy.
The price of your car insurance is dependent on a number of factors:

     
• Your personal details, such as address and driving history
     
• What car you drive
     
• Who owns and drives your vehicle
     
• How you use your car
     
• The type of cover you choose

First, let’s talk about you. Your age, gender and how many years you have been driving are all crucial to insurers to help them give you a competitive quote for cheap car insurance.
Building up a healthy no-claims bonus (NCB) is crucial to reducing car insurance premiums. It varies from company to company so it’s well worth comparing various car insurance quotes. It doesn’t matter that you’ve built up your NCB with a different company – sometimes it will be taken into account in your new insurer’s quote.
An NCB of five years or more, for example, can entitle drivers to a 70 to 75 per cent discount, even on cheap car insurance premiums.
Your address will also affect your quote so be sure to shop around for cheap car insurance every time you move. In general, city centre or rundown areas are considered higher risk, and make the premium higher. Parking in a garage or off the street may help this.
Other security measures, such as alarms and immobilisers, are often taken into account.