Life is constantly changing. You may, however, find that as your personal circumstances change your insurance premium could also be impacted, positively or negatively. There are many factors that influence this and we have partnered with car dealer John Clark Motor Group to learn more about how you can reduce the chance of your insurance premiums increase over time.
Many motorists will likely see their 2021 premiums rise this year as we return to how life was pre-pandemic against what they paid last year. This is due to car insurance costs declining in 2020 with fewer drivers on the roads.
Of course, there are many other reasons why your insurance premiums could rise this year. A few of the main factors include, how you drive your car, geo and demographics, safety features your car has, and your driving record.
The Type of Car you Have
First up is the type of car you have. This might seem obvious but let’s cover it anyway as it will impact your insurance payment.
If you were to change your car to a new larger or more powerful car your insurance can go up. A good rule of thumb here is looking at the insurance group your new car is in.
One factor to consider when buying your new car is the number of safety features it has. Vehicles with a higher focus on safety features could see a benefit in insurance premiums. Having anti-theft devices or premium features like lane keep assist can see discounts. The reasoning here is very clear. Safer cars have far fewer accidents which in turn results in fewer insurance claims. On the other hand the existence of these features on a car would mean that it would be more costly to repair in the event of an accident.
If you are planning to purchase a new vehicle and are curious about the impact it would have you should call your insurance company.
Where you Live
Where you live can also impact what you pay for car insurance. Does your neighbourhood have a high rate of auto accidents? Or perhaps there are more cases of theft, vandalism, fraud, or other issues deemed important insurers. This means that moving home could see your insurance premium increase. Areas with higher crime rates, in general, will also impact your premium.
Where do you Keep your Car?
Along with your geographical location, there is also the consideration of where you are leaving your car. Insurers care a lot about this, arguable as much as any other factor on the list.
Insurers want to know exactly where you leave your car day and night. These can be different locations. Also, don’t feel like you have to park in the same location every time. Just answer where you will most frequently park and you shouldn’t impact your ability to make a claim. Fortunately, there are a few options to choose from and you have a reasonable degree of control over it. On the street, on a private driveway, or in a garage are the main options you will come across at home. Of these options parking on the street will result in the highest insurance premium given the increased risk of damage.
Garages are also not without their issues, unfortunately. Driving in or out does cause the possibility of the car being scratched or bumped as you drive it or out. The other option is using your driveway. Out of the above options, this one will be the most attractive to insurers. Surprising that it beats a garage, right? Driveways are off-road and offer a low chance of accidental damage.
These different options for parking your car have different levels of risk factors. That implies the likelihood of you making a claim.
New Driver on the Policy
Adding a new driver to your policy is another factor that can send that premium up. This is especially true if that driver is young and new. This is, of course, due to their inexperience and odds of having an accident.
Age of Vehicle
We all know vehicles depreciate over time. But on the other side of the coin older vehicles can be cheaper to insure. Now, we are not talking decades-old but if you pick up a car that was created a few years earlier you will be pleasantly surprised about the savings you could make against a newer model. There are cases where you can even get a cash settlement in place with older vehicles.
How you Drive
This one is an important factor. The way your drive can have an adverse effect on your insurance premium.
Have you Been in any Accidents?
Factors that can impact the cost include how many accidents you’ve been in. If in the past you have found yourself involved in a few collisions there is a decent chance you’ll be paying more since the risk it happens again is higher than the average.
Do you Have any Points on your Licence?
Another aspect that can make a difference is the number of points on your license. Of course, a clean license will be the one you want. But if you begin to accumulate points on your license you will gradually increase the impact on your insurance premium. As a very general view in broad strokes, you can expect a 5% rise, six points will see it rise to 25%, and nine could see it rise as much as 50%. Of course, these percentages will vary grossly depending on a wide range of factors.
How Often do you Drive your Car?
How many miles do you drive per week? The further you are driving the more exposure to risk you have. As a result, people with longer commutes are more likely to pay more for insurance.