7 Factors That Affect The Cost of Car Insurance

Millions of people buy auto insurance without knowing why they were quoted the price they received. It’s important for you, as a new driver, to know what affects the cost of your auto insurance to make sure you know what you need or can do to keep your costs down.

These are the key variables insurance companies use to determine the cost of car insurance and the price you’ll pay (in no particular order):

See also: 6 Things Home Buyers Must Know About Flood Insurance | Bankrate

Reading: How high is insurance for a new driver

1. your years of experience will affect the cost of auto insurance

How long you’ve had a full driver’s license affects the cost of auto insurance, simply because less experienced drivers are more likely to be involved in a collision and file a claim.

A simple way to lower the cost of your young driver insurance is to find another driver to name on your insurance.

This works best if it’s someone older than you, like your parents; along with the number of years (or even decades!) they’ve spent driving.

The best checklist to follow for this is:

  • at least 5 years older (older is better)
  • is someone conscientious and happy to be a designated driver (a must!)
  • has 0 points on your license (the lower the better)
  • has failed to claim his own insurance countless times (considered less risky)
  • a warning about insurance fraud

    A word of caution to all of this; Putting someone else as the primary driver and yourself as the designated driver is illegal and will likely result in claims being denied by insurers.

    don’t do it, even if everyone says they are doing it or have done it!

    a survey conducted by gocompare car insurance in February 2019 found that of 1,000 parents, with children ages 17-25 who had passed their driving test, a staggering 10% had insured their child’s car in their name . worryingly, another 34% of parents said they would consider doing the same; called ‘front’.

    ‘fronting’ is actually considered an insurance fraud crime; whose results are extremely serious. again, our advice is don’t do it! it’s just not worth the risk.

    Top tip: You can gain more experience and prove it to your insurance company by taking a pass plus course or advanced driving qualification from the institute of advanced motorists

    2. engine size and its impact on the cost of car insurance

    The bigger your car’s engine, the higher your insurance cost.

    See also: The Complete Guide To Travel Insurance – Forbes Advisor UK

    sometimes the difference between a 1.9 and a 1.6 can be over £1000. The larger the engine size, the more statistically likely you are to have an accident, especially as a new driver.

    Top tip: Get the car you’ve always wanted for at least a year and get a 1.4 liter engine (or smaller).

    Your bank balance will thank you.

    3. where do you live

    If you live in an area with a high rate of auto-related crime or insurance claims, a higher insurance quote will apply.

    For the insurance company, they see you as a higher risk if you live in an area where your car is more likely to be stolen, broken into, or vandalized.

    Top Tip: It would be overkill if we were to advise you to move just to lower the cost of your car insurance, however if you are a student living in an area with a higher crime rate higher than at home, you may want to consider leaving your car at home.

    4. age

    The younger you are, the more risk you run.

    Statistically, you are much more likely to be involved in an accident if you are 18 than if you are 25.

    Important Tip: Unfortunately, there is nothing you can do to address this particular variable, other than being a prudent and considerate driver so that young people for years to come don’t have to pay as much as they do. you did it.

    5. theft of your car

    This variable is evaluated based on the probability of your car being stolen. so this depends on the type of security your car has and how many get robbed or broken into of that type.

    don’t cheat your trip; modifications will most likely increase your insurance

    If you had great ideas about upgrading your car, raising or lowering it, adding bigger wheels, or other cool and trendy things, you might want to reconsider.

    Car insurance companies don’t like modified cars. period.

    One of the reasons for this is because they know that a car runs better when it is left how the experts (manufacturers) built it.

    See also: How long does the borrower have to pay private mortgage insurance?

    They know that modifications people make to their cars, like raising the backrest, are things automakers didn’t do for safety.

    if you have the salary of a rap superstar then by all means modify your car to your heart’s content, otherwise stay sensible.

    Top Tip: Consider investing in additional security measures for your car. Call the insurance companies to see what they recommend and how much this will affect the cost of your car insurance.

    6. profession

    Insurance companies classify people into professions. The most expensive professions to be in auto insurance include soccer players, delivery men, and street vendors.

    Important advice: Do not, under any circumstances, lie or spread the truth about your profession. inaccurate information when discovered will void your insurance.

    7. car safety features

    The more safety features your car has (especially for comprehensive insurance), the cheaper your insurance will be.

    a greater number of security features makes it less risky for the insurance company.

    Top Tip: Carefully consider which car you get with regard to safety features. Not only will this save you money, it could save your life.

    organize your car insurance for free

    We all need a little help from time to time to organize all our car documents, especially if you change providers regularly! That help is even better when it’s free!

    We created the my driving pal app as a free download to help all drivers manage their car and personal safety by:

    • save all documents related to insurance, taxes, mot, maintenance, etc., with reminders;
    • offers a searchable advice center (with English voiceover) covering everything from tire safety, motorway driving, refueling and much more.
    • a co-driver in a road collision: the app guides you through the steps you need to take. you can even take photos on the scene and store them securely within the app!
    • a section on penalty points – and how to avoid getting them!
    • a checklist mot;
    • tips for taking out insurance
    • Take our quiz to test your driving skills!
    • available on ios and android, just click the image and download today!

      reduce the cost of car insurance within the app

      See also: 6 Things Home Buyers Must Know About Flood Insurance | Bankrate

      Reading: How high is insurance for a new driver