Evertise
22 Nov 2022, 18:54 GMT+10
Car cover is an essential part of car ownership but it's also one of the most expensive. But how do insurers work out the cost of car insurance and is there anything you can really do to find cheap car insurance quotes? With advice and tips on how to save money, here's comparison site mustard.co.uk.
Insurance is ultimately about understanding and calculating the risk of a claim being made - the greater the risk, the more you can expect your insurance to cost. To help them calculate this risk accurately, insurers will ask you all sorts of questions, including:
Your age
Drivers under 25 years of age typically pay significantly more compared to any other age group. This is because young drivers are more likely to be involved in an accident, which increases the probability of a claim being made.
Your address
Areas with higher than average crime rates tend to attract higher premiums as there's a greater risk of your car being vandalised or stolen.
Your job
Some insurers link certain jobs to risky behaviour. For example, professional sportspeople often pay considerably more for car cover compared to nurses or teachers.
The type of policy you choose
There are three levels of cover to choose from. The lowest level is third party only while the highest is comprehensive cover. However, that doesn't mean third party is the cheapest option and in many cases, it can be the most expensive.
This is because figures show that third party policyholders tend to make more claims compared to drivers with comp cover, which is reflected in premiums.
The activities you use your car for (known as 'class of use')
If you use your car to commute to work every day, you can expect to pay more than someone who only uses their car for social or domestic reasons. This is simply down to the fact that using your car on a frequent basis increases your exposure to risk, which in turn increases the chances of a claim.
The number of miles you drive each year
If you cover lots of miles each year, you're again increasing your exposure to risk, and this will be reflected in the cost of your premium.
Your car's insurance group
All cars belong to one of 50 insurance groups. As a general rule, the lower the group number, the cheaper the car will be to insure. So, if you're considering buying a new or nearly new car, it's worth taking a look at what group it's in.
Car security
If your car's hard to steal and you can keep your car in a locked garage overnight, you're likely to pay less compared to someone who parks their car on the street.
Your no claims bonus
For every year you drive without making an insurance claim, you'll earn a no claims bonus (also known as a no claims discount). The more years of no claims you have, the bigger the bonus or discount.
Your driving record
Insurers will usually ask you whether you've made any recent claims or if you have any driving convictions. Having one or both can increase your premium as you'll be considered a 'risky driver' who is likely to make another claim.
The good news is that as there are lots of factors that affect your premium, there are also lots of ways you can balance out the factors that make it expensive.
So, while there will be some elements you can't change, for instance, your age, address and driving record, here's what you can do to get cheaper car insurance:
Get a daily dose of New Orleans Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to New Orleans Sun.
More InformationNEW YORK CITY, New York: With just weeks to spare before a potential government default, U.S. lawmakers passed a sweeping tax and spending...
PARIS, France: Fast-fashion giant Shein has been fined 40 million euros by France's antitrust authority over deceptive discount practices...
PALO ALTO/TEL AVIV: The battle for top AI talent has claimed another high-profile casualty—this time at Safe Superintelligence (SSI),...
FRANKLIN, Tennessee: Hundreds of thousands of Nissan and Infiniti vehicles are being recalled across the United States due to a potential...
REDMOND, Washington: Microsoft is the latest tech giant to announce significant job cuts, as the financial strain of building next-generation...
LONDON UK - U.S. stock markets were closed on Friday for Independence Day. Global Forex Markets Wrap Up Friday with Greeback Comeback...
MOSCOW, Russia: This week, Russia became the first country to officially recognize the Taliban as the government of Afghanistan since...
CAIRO, Egypt: This week, both Hamas and Israel shared their views ahead of expected peace talks about a new U.S.-backed ceasefire plan....
WASHINGTON, D.C.: The Trump administration has made public a visa decision that would usually be kept private. It did this to send...
MADRID, Spain: Liverpool footballer Diogo Jota and his younger brother, André Silva, have died in a car accident in Spain. Spanish...
LONDON, U.K.: An unrelenting heatwave sweeping across Europe has pushed early summer temperatures to historic highs, triggering deadly...
President Donald Trump's plans to build a space-based Golden Dome missile defense shield have drawn immediate criticism from China,...