If you are a car owner then you will know that the price of car insurance can vary wildly, often seemingly without reason. We know that each and every car insurance provider will charge a different fee, that is the same with businesses all over the world, but what is it exactly that affects these prices, and are we getting a raw deal on our car insurance prices? Let’s have a look at exactly what can affect the cost of car insurance.
Age and Gender
Whilst it may sound rather unfair, your age and gender are taken into consideration when discussing car insurance prices. This assessment from insurance providers is simply based in facts, given that younger drivers have more accidents than older drivers. Between men and women, it appears that more men have accidents than women, which also can change the car insurance cost.
Geography
Another important factor in determining how much your car insurance will be, is where you live. The reason for this is that most accidents take place not too far from home, so your immediate location has a large bearing on your insurance price. For example, a densely populated neighborhood will have a lot more activity and a lot more cars within it, living here will mean that you pay more for your insurance than someone who lives in a quiet town.
Credit Score
Car insurance providers will also do a credit check and they can often be found to bump up quotes on car insurance for people who have a poor credit history.
The Vehicle
The vehicle which you are driving is also going to have a huge impact on how much you are paying for your car insurance. Again, this is based on data which looks at which cars are more prone to crashing, and which have the potential to cause great damage, or to be damaged heavily. Your car’s power, performance and safety rating have a impact on your overall car quote, with more powerful and faster cars costing much more. Another aspect of this will be the value of your car, insurance companies will charge more because if something happens they will need to shell out a large sum.
Another item to consider in terms of your vehicle is how likely it is to be stolen. The insurance company will look at how secure your car will be, as well as looking at which are the cars that are most popular in terms of car theft.
Driving History
Finally, a car insurance provider will look at your driving history, to make an assessment as to how much of a risk you pose. If you have been driving for 40 years without making a claim, you can count on a lower quote than someone who has made 2 claims in the last 10 years. Driving safely can greatly reduce your car insurance costs.
Always compare prices with different providers before you decide which company you plan to use.