No-one enjoys paying their car insurance. It’s a heavy burden, and the premiums are often sky high. In fact, insurance premiums are currently on the rise. As drivers, our bank balances are tighter than ever, and we’re always looking for new places to save money. Is insurance one of them? Well, to a degree, yes.
It is possible to lower your insurance premium with a few minor changes. In order to figure out how to lower your rates, you need to understand what factors affect your quote. Insurers use a variety of factors to determine how much you’ll pay. Once you understand them, you can learn how to lower it. Let’s take a look.
The car itself
The car you choose has an enormous impact on your insurance quote. Every car falls into a particular insurance bracket that determines its cost. This bracket is based on any number of things. First and foremost, the engine size. Naturally, the more power your car has, the more dangerous it is. Insurers measure their rates based on potential risk factors. So, bigger cars with bigger engines incur a bigger insurance cost. It’s also worth noting that used cars incur a significantly lower insurance premium.
Insurers use driving statistics to help them calculate their quotes. All driving figures point to a more dangerous driving culture among young people. Young drivers are involved in accidents more often than their older counterparts. For that reason, they are considered more hazardous. Their premium will go up as a result. Of course, you can’t change your age! But, it’s worth understanding the facts.
If your car is stolen or broken into, your insurers are liable to pay out a large sum for the replacement. Naturally, the insurance premium increases as the security threat increases. That’s why insurers offer a discount to vehicles that are kept in a locked garage. They also take into account the crime rates in your area of residence. Its also worth investing in immobilisers and additional alarms for your car.
Your driving history is an important part of the insurer’s decision. If you’ve driven for ten years without a single hiccup, insurers are likely to offer you a bonus or discount. They can assume that you’re a safe driver who takes care on the road. On the other hand, if your driving history is littered with crashes, repairs, and break ins, your rate will go up.
Car insurance companies have recently started including the driver’s profession on their premium process. Some professions are considered more hazardous than others. The simple reason is that some professions require more time on the road. If your career involves lots of driving time, your premium will rise. If you’re working from home, however, you stand to get a discount on your car insurance.
Now that you understand the key factors behind your insurance premium quote, you can make subtle changes. It all starts with the correct choice of car. Choose something that is safe, reliable, and second-hand. Then address the security of the car. Follow these tips, and your insurance won’t be such a burden.