Why is my car insurance so expensive? Can I bring down the cost of my premium? These are questions we think about a lot, especially when our insurance is up for renewal. Many factors affect the price of your car insurance and these differ from country to country. Every car insurance company has its own algorithms to calculate risk and that is how they come up with a price for each person.
- Driving Record
One of the main things that affect the price of your car insurance is your driving history. If you are a dangerous driver who has been in a string of accidents, even minor ones, you will be deemed an at-risk individual and the cost of your insurance will jump. Experts at rabbit finance car insurance assess drivers on their driving record and if you have had claims made against you, traffic violations, or driving-related offences, your insurance rate will rise.
If you are looking for ways to lower your premium, try some of these ideas:
- Try to stay clean for at least 3 years.
- Take a driving course that reflects well on your character.
- Do not lie about your driving history.
- Driving Habits
We all know that car insurance is essential and when purchasing it, insurance companies will assess your driving habits to see how much your coverage will cost. Insurance companies will want to know how much driving you do on average each year. In addition, they may ask about your reasons for driving – pleasure, commute to work, etc. It makes sense because the more you are on the road, the higher chance you have of being involved in an accident.
The distance and times that you drive can have a major impact on your insurance coverage. If you do not drive a lot, you can sign up for certain programmes that allow you to benefit from discounts for low-mileage drivers.
You must be cautious with some of these apps as sometimes they can analyse your braking frequency and speed and conclude that you are a dangerous driver.
- Age & Gender
If you are a younger driver, your premium is always going to be higher no matter what you try to do to lower the rate. Drivers who are under 25 are deemed riskier than older drivers. This is especially prominent for male drivers who are under the age of 25. Insurance companies increase the premium for younger drivers as research suggests that younger drivers are responsible for a disproportionate amount of fatality-related crashes.
If you are in your teens or early 20s, it is difficult to lower your premium. Age is the single biggest factors affecting rates. Insurance rates for male drivers under 25 are typically higher than females.
Many factors affect your car insurance coverage, and this article has highlighted the 3 most prominent. Your age and gender are always going to play a part. Your driving habits and driving record will also have a major impact on the price of your car insurance.