Do you ever feel car insurance to be something elusive? You’re not alone! New drivers get a jolt as they discover higher-than-expected premiums. Others see an inexplicable rise in their renewal costs. Everything about the pricing of car insurance seems so complicated, really boils down to: oh, “it depends”. Doesn’t the response frustrate you just a little?
In this guide, we will try to explain the various factors that influence car insurance costs in the UK. You will find out what above-average premiums can stem from and what simple maneuvers can take them down. Let’s try to simplify things a little so you can save some bucks.
Factors That Affect Car Insurance Premiums
Car insurance companies know many things that allow them to determine how much to quote you. They weigh risk in comparison to cost. What factors do they look at? These can be grouped as driver, vehicle, or policy-related factors.
Factors Relating to the Driver
Who you are is important when it comes to establishing the cost of an insurance premium. Age and driving experience are important. So are your driving record and occupational character. Your marital status and where you live are even put on the scales of such relevance.
Age and Experience
Young and inexperienced drivers pay higher premiums. Why? Less experience. The insurance companies see them as more of a risk than older and more skilled drivers. In that sense, you might want to look into telematics policies, which track your driving behaviors and could help lower your premium as a safe driver.
Driving Record
With accidents and convictions, premiums become higher. Point count also sort of contributes here– the cleaner the record, the lower the premium as all show you to be more secure of a driver.
Factors Relating to the Vehicle
Your vehicle itself contributes to the frame of reference in determining insurance costs. Car make and model are mainly stirred by influences. The age and condition of the car will matter.
Car Make and Model
The insurance group given is an element that influences the money paid for premiums. Some cars are simply less expensive to insure than others. For example, a small, low-key car is oftentimes the cheapest. A sports car is typically probably going to cost a bomb.
Car Age and Condition
Old might mean cheaper on insurance, but increased risk in case of accidents and collisions due to the absence of modern safety features are an issue. All this combines to affect the risk profile. Newer vehicles with safety technology may even attract lower premiums in some instances.
Policy-Related Factors
This relates to the particular kind of insurance chosen and consequently the price. It’s also important to state what extent one wants such coverage. Certain combinations affect the premium with regards to the amount of excess being decided upon.
Coverage Type
Third-party form coverage is the lowest one, thus serving only the statutory minimum. Third-party fire and theft is another option with additional coverage. The most extensive is comprehensive coverage. Each layer will draw different costs for a policy.
Excess
Any and all excess that might be taken into consideration will, of course, impact premiums. If the amount of excess is set higher, typically that equates to a lesser premium at the outskirt. Consider the excess that will apply appropriately for you. Ensure to carry that amount in case of a claim.
UK Average Car Insurance Costs
What average cost of car insurance can be said? It ranges so much depending on the factors just discussed. Therefore, average costs tell you a lot more in terms of a yardstick, although, in your case, it could be slightly different.
National Average
The average car insurance premium in the UK can be said to hover around the £500 per year mark. This figure comes from famous establishments like the ABI. Beyond this, premiums vary by region. Big cities are usually on the heavier end..
The Cost Depending on the Age Group
The young drivers (17-24) mostly pay much more, say £1200 per annum. Older drivers usually pay lesser limits, according to £300 per year. They are averages; your cost can be high or low.
Affordable Vehicle Insurance Premiums
Would you like to decrease your car insurance premium? Several things can be done. Comparison shopping is essential among the things you can try. Policy optimization helps as well. Improving driving skills would also help in making savings on costs.
Comparison Shopping
It’s true that you must shop around for the best rates; each agent has its own criteria for calculating quote amounts. Do not stick to the first quote you get; ask from different agents so that you can see the best deal.
Utilize Comparison Websites
Trustworthy comparison sites do save time. Find well-known insurance companies to reputedly compare and match from many providers. Thus, comparing prices and coverage will be much more comfortable for you.
Get Quotes Directly from Insurers
Some insurers do not belong to comparison sites. Check direct insurers as well. You might find a better deal this way.
Optimizing Your Policy
Changing your policy options can lower your costs. You can think about your excess and mileage. These are small little changes, but they’ll make a big difference in cost savings.
Increase Your Excess
A higher excess means you pay an even larger contribution towards the costs associated with a claim, but because of this your premium will get reduced.
Conclusion
There are many things which determine an individual’s car insurance costs: driver factors, vehicle factors, and policy choices. At the end of the day, comparing and optimizing your policy is what ultimately gives you the best chance to save money. Car insurance may turn out quite to be an expensive venture, but understanding the factors that constitute its costing and taking proactive steps could mean that you find one that suits your needs.
