There are several factors that affect the cost of premium that you must pay to have your car covered under a certain car insurance policy. Some of the most common factors that are responsible for what you ultimately pay are as follows. The type of vehicle owned by you – It is obvious that a large and luxury car will entail higher costs as compared to a small and yet serviceable car. An expensive car has its drawbacks and these are what that give rise to an increase in the policy rates. If you were to make a claim for a luxury car, the insurer would have to dish out a hefty sum and so the cost of premium would automatically go up. Also an expensive car is always under danger of theft and vandalism.
The area in which you live will considerably affect premium rates. Areas prone to theft and vandalism are not taken lightly by the insurers. If you happen to live in such an area, then be prepared to pay more, as car insurance companies do not take kindly to this risk.
Age – Your age makes a lot of difference too because a young driver has to pay comparatively higher premiums than their older and experienced counterparts. If you are a new driver or a driver below the age of 25, you will have to pay more than a driver who is over the age of 25. The older and more experienced you are, the less will be your cost of premium.
Car insurance companies have a points rating system and they rank you accordingly after considering certain factors such as the type of vehicle and its cost for repairs or replacement, you’re driving history, security installations and similar factors. However there are several ways in which you can keep down your premiums, such as
Enrolling for a driving course that is recognized by the insurance companies
Keeping your driving record straight, which means that you must try to maintain a no claims policy?
Install proper security devices that will protect your car from thefts
Try to park in a garage if you have one instead of parking in the streets
The last but not the least, you must shop around for car insurance quotes. Make your decision only after comparing car insurance quotes that you have collected from several companies. This will help you find a policy that is reasonable and within your budget, but also offers you the cover you seek.