why does the place where I live cause an increase in the price of car insurance?
In order to calculate how much you have to pay for insurance, insurers must calculate how much risk is involved in your policy. this is determined by a number of risk factors.
There are many risk factors that insurers take into account when calculating the price you pay. From your age to the car you want to insure, these risk factors help insurance companies get an idea of the possible risk you face.
Your address is a risk factor that many drivers don’t take into account when taking out insurance. Insurers consider your address for a number of reasons, including population density and the safety of the area.
Living in the center of a busy city like London or Birmingham can cause the price of car insurance to rise and your premiums will be more expensive than in other areas of the country. This is because large cities attract more cars and more traffic, which increases the chances of having an accident.
It’s not just big cities that are risky areas for car insurance, if you live in an area with a high crime rate, insurers are likely to jack up your cost assuming your car is more likely to be vandalized , damage or theft. .
If you consider that you spend most of your time driving in your local area or parked at your address, you can understand why your location has such a big impact on how much you pay for insurance.
make sure you enter the correct information
When getting an insurance quote, no matter what you want to insure, it’s important to be as open and honest as possible. Not only could a mistake on your policy cause your cost to skyrocket, but something as simple as knowingly entering the wrong address could void your policy. this means that if you have an accident, you will not be covered and you will have to pay all the costs involved.
Not only would the insurer refuse to pay if you file a claim, but your policy would be marked canceled, meaning you’d be classified as an uninsured driver and could face an unlimited fine.
You will also need to state the fact that a policy was canceled when you obtain insurance in the future. this can increase your future premiums and could even prevent you from getting coverage.
A little white lie may seem harmless at the time, but not only could it end up costing you a fortune, it causes insurance premiums to rise for all drivers to cover the cost of paying for fraudulent policies.
reduce the cost of insurance in my location
There are several ways to lower the cost of your insurance premiums without resorting to fraud.
If you live in a city center or an area with a high crime rate, ensuring your vehicle is parked off the road, preferably in a locked garage, can lower the price you pay for insurance.
You should also make sure you have a working car alarm and immobilizer installed. As you reduce the risk on your vehicle, you should see the premiums you are quoted begin to decline.
There are a number of general things you can do to lower the cost of your insurance, these include:
- drive a smaller vehicle in a low insurance group
- be honest about the primary driver of the vehicle
- increase your voluntary franchise
- choose the level of coverage you really need
- be clear about how you will use the vehicle.
It’s also important to only pay for the insurance you really need. annual insurance is not always the best option for drivers. If you’re borrowing a car for a day or a few weeks, then you don’t need to pay for a year’s worth of coverage.
Term insurance is a great alternative for many drivers and can save you time and money. It is a flexible policy available from just 1 hour to 28 days. If you don’t want to pay for coverage you don’t need, then short-term coverage is the best option for you.
Getting a quote is simple and straightforward, takes a couple of minutes and then you’re covered instantly.