Top 5 car insurance factors that affect your premiums

Many things can have an effect on your car insurance premiums, here are five factors

17:35 18 November 2012

Some people are not aware of some of the things that can affect car insurance prices, even though they may know quite a bit about car insurance.
So, here are our Top 5 car insurance factors.

 

These can play a part in what car insurance premium a person ends up with:

 

1.    A persons age

 

2.    Bundle insurance

 

3.    Collision coverage

 

4.    Deductibles

 

5.    Each minor damage claim

 

Car insurance and age related factors

 

Everyone knows that teenagers have it hard when it comes to getting car insurance. But youngsters are still surprised by the high premiums when assessing car insurance policies.

 

A reason for high prices relates to the age group being mostly inexperienced drivers. Car insurance companies assess accident rates, and can see young drivers as being more of a risk on the roads. This is why car insurers charge them higher premiums.

 

To avoid high car insurance premiums, it may be worth a young driver looking at adding themselves to another person’s policy until the age of 25.

 

Insurance bundles

 

When it comes to insuring multiple cars, there can be car insurance discounts for people to take advantage of. Individuals can also ask their home insurance providers about any discounts that may be available if car insurance was to be bought with through them also.

 

It’s also worth noting if there are any other discounts to help reduce car insurance premiums, such as low mileage or having installed security on a car.

 

Cover for collisions

 

Sometimes it works out cheaper to replace a car than it does to fix it if it’s been in an accident. Consider this factor if you have an old car that isn’t worth much and it needs fixing after an accident – it may not be worth using your cover. This could be a way to save you money on your car insurance premium.

 

Deductibles

 

What are deductibles? Well, they help reduce a person’s premium rates to some extent, as the higher a deductible is, the lower the premium works out to be. So if you don’t want high car insurance premiums, don’t lower your deductibles.

 

Pay for minor damages

 

Although having cover in place for minor accidents is all well and good, it might help reduce car insurance prices by solving a problem independently rather than using car insurance cover. This also relates to bumps and scratches than can easily (and cheaply) be fixed.