Many factors influence the premium for your car insurance policy. Your insurer will have asked you many questions when producing your quote - some of which will affect your premium and some that will not. Below we discuss the key variables that are within the control of the insured.
Location
Where you live has a big influence on the cost of your auto insurance. The risk of your car being broken into or stolen is a major concern for the insurer. More urban areas traditionally face a greater risk of theft and therefore tend to be more expensive than rural areas.
Excess
By agreeing to pay a higher deductible on each claim, you can lower your car insurance premiums. This is because you reduce the liability of the insurer and therefore in return they are able to offer you a lower premium.
Your vehicle
The cheaper and slower your vehicle is, the lower your premiums are likely to be. If you're considering buying a new vehicle, be sure to factor in the cost of insurance - you may be able to buy the car, but can you afford to use it?
Policy consolidation
By insuring multiple vehicles with the same insurer, or by trying to purchase home and life insurance from your auto insurer, you may be able to get a “group buy” discount.
Car park
Where you park your vehicle overnight is also very important to insurers. If it's kept in a locked garage, you should be offered a lower premium than if you left it unattended on the street.
Mileage
You can control your insurance premiums by limiting your annual mileage. However, be aware that if you go over the limited number of miles, then you will become uninsured!
Security
Security devices that prevent or hinder theft can also reduce your premium. Common examples include alarms and immobilizers, however, be aware that as we improve the quality of our security devices, thieves become better at circumventing them.
No claim reduction
Save your claims discount by avoiding making small claims on your policy. After a certain number of years, generally 4 or 5, you will often have the possibility of paying a small additional premium to protect your bonus-malus. This can be very useful if you end up having an accident later on.
Your gender.
Women are statistically less likely to have an accident and, if they do, it is less likely to be serious. Thanks to these statistics, women enjoy lower premiums. It's also worth noting that if you're representing half of a couple, you should consider having the woman as the primary driver and the man as the second driver.
Advanced driving skills
By taking an advanced driving course, you may also be able to lower your premiums. The Institute for Advanced Motorists and the Royal Society for Prevention of Accidents each offer a membership that gives you discounts on both the cost of driving lessons and your car insurance premiums. Two key variables NOT under the control of the insured.
Your age
The older you are, the less likely you are to make a claim. As a result, insurance companies charge lower premiums for older drivers.
One last tip.
A large percentage of auto insurance is now sold over the Internet. This is because it is convenient and inexpensive. Many insurers now give an additional 10-15% discount if you buy online.
