How Car Insurance Premiums Are Calculated
Wednesday, April 21st, 2010Several factors are used by car insurance companies to determine how much your insurance premiums will be. The main contributing factors are set out below…
Your car : One of the best ways to get cheaper car insurance is by changing the make and model of the car that you currently drive. Though you might love your current car, it really could be costing you thousands of extra dollars each and every year. You want to choose a car that is less likely to be stolen, for example.. A car with inbuilt safety features will save you money in the long run too, as you will be less likely to be in an accident.
Driving record : Your driving record plays a major role when it comes to determining your car insurance rate, with a good driving record meaning big savings. Having speeding tickets or a history of getting into car accidents means that you are a high risk driver, and you will end up paying more for your car insurance. If you have a poor driving record, then it is definitely worth your while putting the time and effort in to making amends for it. The longer it was since your last offence, the less bearing it will have. Consider also enrolling yourself on an advanced driving course.
Where you live : Your insurance premiums are affected by how an insurance company rates the city you live in, or even the particular street that you live on. Whether your area is classified as ‘good’ or ‘bad’ depends on how many car accidents happen there each year and the statistical likelihood of your car being stolen or vandalized. Moving to the other side of town could literally see you saving yourself a small fortune on how much you pay for insurance.
Your occupation : Believe it or not, your occupation can affect the amount you pay for your car insurance. Anyone who has a job where they are often on the road will end up paying more. On the other hand, those who drive less than average, for example retirees or those who work from home, are likely to get discounts. Changing your job in order to get cheaper car insurance is not, obviously, advisable, but that does not mean there is nothing that you can. You can ask your company to provide you with a company car, or you can ask them to make a contribution to you car insurance premiums as they are responsible for inflating them.
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