CAR INSURANCE EXPERT EXPLAINS SIX THINGS THAT MAKE YOUR PREMIUM MORE EXPENSIVE

Car insurance costs have soared recently, leaving drivers shocked when renewing their policies. Some motorists have seen their car insurance payments double, struggling to find cheaper quotes on comparison websites.

Experts suggest there could be key reasons why drivers are being hit with such high charges, and possible changes that could help reduce these costs. This is something drivers might want to consider when sorting out their insurance, BirminghamLive reports.

Important factors include where you live, your job and your driving history. Insurance experts at Zego have provided more insight.

Location

Insurance companies often look at local statistics for your area, like driving behaviour, crime rate, and the average number of both legitimate and fraudulent claims made by other drivers, say experts. Living near an accident hotspot could mean more claims are made in your area.

Where you park your car is also taken into account by insurance providers. Cars without protected parking or overhead cover are more vulnerable to damage compared to those stored in a garage, although some insurers also view garages as potential damage risks.

Job

When you search for a car insurance policy, your job title plays a key role in determining how likely insurance providers think you are to make a claim. A recent report from MoneySuperMarket shows that hospital consultants and car salespeople received the highest car insurance quotes between November 2022 and January 2023.

This is likely because hospital consultants often work long and irregular hours, while car salespeople spend lots of time on the road. Both situations can increase the risk of being in accidents. MoneySuperMarket's Car Insurance Job Picker tool shows that making small tweaks to how you describe your job can help bring down those insurance premiums considerably.

Insurance company Zego gives an example: If you're not working and usually pay an annual premium of £500, you could save £100 just by changing your job title from 'Unemployed' to 'Not in employment'. For those unable to work due to health reasons, the same insurance quote could drop to £318 if you list your employment status as 'Not employed due to disability', or even fall to £161 if you say you are 'Retired'.

Age

Your age also plays a significant part in determining your car insurance premiums. Younger drivers, who are viewed as less experienced and therefore more likely to have accidents, often face higher premiums. But older drivers can also end up paying more, as they are statistically prone to accidents and seen as 'higher risk'.

Zego advises: "Installing a black box can help lower these costs by showing that the individual willing to prove that they are a safe and responsible driver."

Vehicle profile

Your car's insurance group matters when it comes to your insurance cost. The group depends on things like how much the car costs new, repair prices, and safety features like locks and alarms, according to Zego.

The AA says that insurers look at how safe your car is, based on its security features. How old your car is also affects your insurance because newer models might cost more to fix.

For example, a new, pricey car usually costs more to insure than an older one with lots of miles. Zego advises: "Ensure that your car has alarms and immobiliser installed to keep your locks and alarms up to date, and opt for small cars with less powerful engines, whether old or new, for cheaper insurance options."

Mileage and driving history

How much you drive can change your insurance price too. If you drive a lot, you might pay more because there's a bigger chance of having an accident.

So, make sure you guess your yearly mileage right to avoid overpaying. Zego suggests: "If the amount you use your car is unlikely to change from the previous year, an easy way to calculate your annual mileage is to look at your most recent MOT certificates."

"You can calculate the difference between your last two tests, to determine your annual mileage. Alternatively, you can make a note of your vehicle's mileage when you take out a new policy and again when it comes to renew it, to accurately calculate how much you are driving."

Insurance companies look at things like suspensions, convictions, or points on your licence when they decide how much you pay for insurance. They use your past driving to guess if you might need to claim in the future.

Claims history

Most drivers know about no claims bonuses. If you've made an insurance claim before, it can change the price you pay for insurance.

Even if the accident wasn't your fault, you still need to tell the insurance company about any claims. They usually check your no-claims record for up to five years to give you a discount.

Sign up for our daily newsletter here for all the latest news about Coventry.

2024-02-12T10:32:16Z dg43tfdfdgfd