Car Insurance Price
Lower Car Insurance Price - 5 Considerations To Computing Your Car Insurance Premiums
By Justin Koh
Have you ever wonder why car insurance costs vary from one car insurance company to the other? This is due to the different type of computation factors that car insurance companies use to derive the car insurance cost. Based on the answers that you replied to the car insurance company, they will add or discount the cost before arriving at a final price for your car insurance. Thus, it is important for you to shop around first before you commit yourself to a particular car insurance company as different companies take a different view of the various high risk factors. We will look at some of the factors that car insurance companies take into considerations.
1. Having a clean driving record.
Without a doubt, car insurance cost would increase if you have been convicted of a driving conviction. Thus, it pays to be a safe driver so that unnecessary costs won't be incurred.
2. Adding additional drivers to the policy
By adding additional drivers to the policy, extra premiums will be added. Thus, do not add in drivers into the policy just because you think that this person might be using the car in the future. Consider carefully whether it is necessary to add this person into the policy.
3. The age and gender of the driver
If the driver is under the age of 25 the rate will mostly likely be fairly high. This is due to the lack of driving experience. Usually, you will need to have over three years driving to be quoted a lower rate. Also, a single male driver rates higher than a single female. This is because males are rated as a higher risk to car insurance companies.
4. Your credit report history.
Most car insurance companies take into account of your credit history. Paying your bills on time and maintaining a good credit history will allow you to enjoy lower car insurance cost.
5. Anti-theft alarm
Fix up an electronic central locking and alarm on your car. Discount could be given by insurance companies when you have anti-theft devices install in your car.
January 21, 2011
7:57 pm
How Do I get a reasonable car insurance price for a seventeen year old boy in the UK?
I’m sixteen at the moment, but I’m looking at insurance prices and they’re ridiculous! (I got a quote of £5000 at one point :l) Have you got any tips for how to get a lower premium. Thanks.
A really comprehensive list would be great because I have no idea!
I have tried looking at insurance group one cars, but the prices are still really high.
February 13, 2011
9:17 pm
1. Opt for a larger excess – only if you can afford to pay it if you have a crash
2. Move to a safer area for car crime – difficult
3. Do not do a higher risk job like bar work, avoid unemployment and being a student
4. Keep the car off road at night and preferably in a garage
5. Be older
6. Get a small motorbike instead like most used to when I was your age
Unfortunately the insurance for teens has gone up even more than that for everyone else this year. It is not realistic for many teens to expect to be able to run a car now.
February 15, 2011
8:10 pm
what is the estimated price of being added onto a parents car insurance?
i am 16 sorting out the finances of my future car and have noticed the unreal car insurance price for a little car such as a nissan almera and am thinking of going onto my parents car insurance.
February 11, 2011
9:42 am
Could cost a bomb if they have a car bigger than what a new droivwer would normally have.
If you mean getting a car yourself and one of them being the declared main driver when you really are this is a criminal fraudulent act and as the insurers are now on to it they price the insurance on the youngest driver so it does not save anything anyway.
You parent will have no claims bonus – this is useless to you as they cannot use it on an additional policy.
Insurance for you on an old car which costs maybe £2000 or as little as £500 to purchase will be £3000 to £4000 a year.
February 22, 2011
8:09 pm
How much does gender affect car insurance price?
I’m writing an essay on seemingly biased car insurance charges.
Does anyone have any facts or statistics involving car insurance? Thanks!
February 28, 2011
6:00 pm
All insurance rates are decided upon by information gathered and guys have more accidents and more speeding convictions than the girls.
http://www.car-accidents.com/teen-car-accidents.html
Male Versus Female.
The car accident death rate for teen male drivers and passengers is more than one and a half times female teen driver (19.4 killed per 100,000 male drivers compared with 11.1 killed per 100,000 female drivers.
February 26, 2011
8:08 pm
What is the average car insurance price for a new driver?
I have my driver licence almost eight months ago in NH. Now I moved to Mas and I pay about $ 210 per month for car insurance. I want to know if I can find cheaper or this not too bad for a new driver. I own a 2000 ford Taurus since two months. What do you think guys?
February 19, 2011
3:24 am
the cheapest insurance i could find when i first started driving was nationwide but it was still just over 200$/month. So it looks like your right in the ball park of it all for full coverage.
February 27, 2011
10:53 pm
Does where you live affect your car insurance price even if you’re only third party/fire/theft?
I recently moved to a city from the countryside. I guess I need to inform my car insurance company of this, but I’m worried they’ll want some more money off me and tbh I don’t have any whatsoever! Do you think they will? I only have third party/fire/theft cover.
February 25, 2011
11:26 pm
Unfortunately in most instances the car insurance rates for urban areas are higher than suburban or rural. There several factors that cause this: 1) more vehicles on the road in a city setting increases the probability of crashing, i.e. kind of like bumper cars, 2) higher crime rates in cities can lead to more incidents of vehicle vandalism and theft, 3) there is more probability of a crime ring that sets up accidents leading to more claims and increasing the costs for everyone in the area as a result, 4) in most cities people have even more access to lawyers, i.e. ambulance chasers that subconsciously or consciously encourage people to claim and sometimes inflate injury claims, 4) overall costs of all claims tend to be higher in cities due to increased labor, material and even medical costs, etc.
Regardless though you do need to bite the bullet and inform your insurance company of the change. It might not be as bad as you think too since the difference in rates in some areas is not as drastic as you might believe. Further if you are closer to your job and your mileage is lower that might compensate since many insurance companies also base their rates on mileage both to commute and annual. Also consider quoting and maybe purchasing renters insurance with the same company that writes your auto insurance since you will probably get a multi-policy discount for this. I have seen some instances where the cost of a renters policy not only ends up being free but the client still ends up receiving an additional amount off the auto policy premium.
The other piece of advice is that if the rate is too high — take the opportunity to shop around. You just might end up saving some money. One word of caution though make sure that you have or purchase higher than the minimum limits of liability, uninsured and underinsured motorists limits as trying to save in these areas can come back to bite you.
I hope this information helps. Good Luck