What sort of things impact your car insurance quote?

While we all love our motors, one thing that can be a little bit annoying is all of the added expenses that are associated with running them. Insurance is a prime example. When the time comes to renew your insurance, do you find that you are often disappointed with the quotes that you receive? You are not alone. A lot of people feel the same way.

The key to getting a better quote is to understand what influences your car quotation in the first place. Once you know this, you will be able to make proactive changes that can help you to get a car insurance quote that you are happy with. So, with that being said, let’s take a look at some of the different factors that can play a role when it comes to the cost of your insurance. 

  • Whether or not you have been in any accidents – There is only one place to begin, and this is whether or not you have your no claims bonus. If you have been in an accident and you have made a claim on your insurance, you will be deemed as a higher risk for making a claim again. Of course, some car accidents are purely unavoidable, especially if you were not the guilty party, so this can seem very harsh, but it is how the insurance industry works. 
  • How long you have been driving – Aside from whether or not you have made a claim in the past, one thing your insurance providers will think about is how long you have been driving. If you have only just passed your driving test, you will be deemed a greater risk than someone who has been driving for ten years. As you get older, you should find that your insurance quotes get cheaper with every year that passes by if all other things remain the same in regard to your circumstances. 
  • When you try to renew your insurance quote – A lot of people do not realize this but the date that you try and get a new insurance plan makes a difference. Experts recommend that you look for an insurance quote about 21 days before your current one expires. By doing this, you have time on your side, which means lenders will typically offer you their best deal. If time is running out, prices get more expensive because insurance providers know that you are in a rush and do not have a lot of options. Try it out next time you need a new car insurance quote and we are sure you will notice a difference.
  • The make and model of vehicle you own – Aside from the points that we have mentioned so far, another factor to consider is the type of car you own. Some makes and models of vehicles are more expensive to insure than others. The age of your car and whether or not it is secondhand will often come into consideration as well. Remember, insurance is all about risk. If a car is more expensive or the parts are limited, the risk is greater, and the costs are higher. If a vehicle is very old, the risk of a problem occurring is also higher, so again you can expect the insurance to cost more.
  • How secure your car is, including where you park your car overnight – Finally, another factor that is going to have a big impact on your insurance quote is the security of your vehicle. Insurance providers will want to know where you park your vehicle overnight so that they can assess the risk of it being stolen or any damage occurring to it. A locked garage is typically the best place for a car to be parked in insurance terms. You then have driveways, which are better than street parking. If your car is parked somewhere out of sight, this will typically be deemed a bigger risk. 

What to do when your car insurance goes up?

Now that you understand some of the logic that goes into an insurance quote it might be easier to determine the best course of action to take when your car insurance goes up. If your premium has increased then first and foremost you should try to determine the cause behind that rise. It could be an obvious answer in that you were involved in a road traffic collision and as such your premium will inevitably rise. Or it may be that it is due to factors you cannot do much to avoid, such as a change in address and the crime rates at that new address, for example. That said, there are some steps you can take to limit the impact of car insurance increases and they are as follows; 

  • Shop around for the best deals. Do not feel obliged to stick with your current provider, there may well be much better deals on the market, especially for new customers. 
  • Similarly, do not allow your policy to auto-renew. A quick phone call to your insurance provider to discuss better rates (or the potential of leaving to find better rates) may be all it takes to benefit from better premiums. 
  • Estimate your mileage accurately, if you allow for mileage that you will not use you will be costing yourself more money. 
  • Increase your deductibles. Agreeing to a higher deductible should decrease your overall policy price. 

So there you have it: some of the different factors that can influence how much you are quoted when it comes to your car insurance. From applying ahead of time for a new insurance quote to making sure that your car has a safe parking spot overnight, there are a number of different steps that you can take to increase the chances of you being offered a more affordable insurance quote. Use the advice and suggestions that have been mentioned above and we are confident you should get some better quotes next year once your renewal date starts to approach. 

Photo Credit: Lexus

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