There are a great number of factors that influence the price of car insurance.
Being aware of these factors will enable you to make a more informed decision when shopping for the right car insurance to suit your needs. However please be aware that these are not the sole factors, for example, in Ireland since a gender equality law came into effect, one insurer showed that 87% of men in Ireland could save by switching to them.
Here are the main factors that you should know about before requesting a quote from an insurance company.
It is a fact that the majority of accidents occur near home and this is one reason why the area in which you live may affect your premium, as densely populated areas increase the risks of accidents, including injury-causing traffic collisions.
Another reason why your postcode affects your premium is the crime rate in that area. If you live in an area with a high level of criminal activity, your car will be more at risk of theft or damage, which will, therefore, increase the cost of your car insurance.
1. Safety Rating
If you own a car with a high safety rating, this decreases your chances of an accident and, therefore, you will be subject to a lower rate of car insurance than those cars with a lower safety rating.
The presence of things like airbags, traction control and anti-lock braking systems (ABS) will increase your safety rating and decrease your premium in the process.
The smaller the engine in your car, the less your car will cost to insure. This is because smaller engines are generally less powerful than big engines and are slower as a result.
Speed is often to blame for accidents, so cars incapable of excessive speeds will inevitably be subject to lower premiums.
3. Security features
Any make of car that is on the list of the most stolen vehicles will be subject to higher rates of insurance than those models not on the list. If your car has an alarm and/or a wheel lock, this will significantly lower your premium.
If you have been in road accidents, been fined for speeding or you have previously made car insurance claims, your premium will almost certainly be higher than normal.
In fact, if there are too many blemishes on your record, you might find it impossible to find a company willing to insure you.