What Influences Your Car Insurance Premiums? - 11 Aug 2009 09:11
While all insurance providers offer different insurance quotes or monthly premiums, they look at similar factors when determining your car insurance policy. From the make of your vehicle to the height of your boundary wall, many factors outside of who you are influence how much you pay. These are what insurers will weigh.
The Car
Not all cars are created equal. If it comes from Germany chances are your vehicle will have higher premiums. Imported cars need imported parts which make them more expensive to repair. If its a sports car, the premiums will be a little higher, not only because statistically they have more chance of being in an accident but they’re more appealing to thieves.
If the make of car has a higher number of service centres available, then the premiums will be lower. More service centres mean better availability of spares and technicians.
The Owner
True to the stereotype, young men are more of a risk than young women. Age and gender play a part when determining your premiums. Under 25 is always expensive, especially if you’re a working under-25. Whether you use your car for business or pleasure will influence your premiums as will where you keep the vehicle at night. Lock-up garages are obviously the best bet.
All areas covered by the insurer have been assessed in terms of the crime-risk, as have security systems and safety precautions taken by homeowners and body corporates. If your area has more instances of crime and fewer safety measures, your premiums will be higher.
The Policy
Whether you get essential or comprehensive cover, influences your quote. More cover is more expensive. The amount of excess, and thus risk you as the owner take upon yourself, determines the premiums as well. If you are the only designated driver, your premiums will be lower - but if someone else has an accident while driving your car, you’re not covered.
While knowing that these factors can influence your insurance quote, being honest with your provider will lead to better insurance in the long run. If for any reason an insurer suspects dishonesty, they can consider the contract void.
While all insurance providers offer different insurance quotes or monthly premiums, they look at similar factors when determining your car insurance policy. From the make of your vehicle to the height of your boundary wall, many factors outside of who you are influence how much you pay. These are what insurers will weigh.
The Car
Not all cars are created equal. If it comes from Germany chances are your vehicle will have higher premiums. Imported cars need imported parts which make them more expensive to repair. If its a sports car, the premiums will be a little higher, not only because statistically they have more chance of being in an accident but they’re more appealing to thieves.
If the make of car has a higher number of service centres available, then the premiums will be lower. More service centres mean better availability of spares and technicians.
The Owner
True to the stereotype, young men are more of a risk than young women. Age and gender play a part when determining your premiums. Under 25 is always expensive, especially if you’re a working under-25. Whether you use your car for business or pleasure will influence your premiums as will where you keep the vehicle at night. Lock-up garages are obviously the best bet.
All areas covered by the insurer have been assessed in terms of the crime-risk, as have security systems and safety precautions taken by homeowners and body corporates. If your area has more instances of crime and fewer safety measures, your premiums will be higher.
The Policy
Whether you get essential or comprehensive cover, influences your quote. More cover is more expensive. The amount of excess, and thus risk you as the owner take upon yourself, determines the premiums as well. If you are the only designated driver, your premiums will be lower - but if someone else has an accident while driving your car, you’re not covered.
While knowing that these factors can influence your insurance quote, being honest with your provider will lead to better insurance in the long run. If for any reason an insurer suspects dishonesty, they can consider the contract void.