10 things that affect your car insurance

There are plenty of factors that affect your car insurance costs - here are the key ones...

1. Policy Type:

Third Party (the minimum the law allows) will always be cheapest.

2. Age:

The young crash more often and pay more for insurance.

3. Group Rating:

You will pay more all round for an expensive car.

4. Modifications:

Modifications often cost you more in insurance.

5. Location:

Cars usually parked in a garage or off the road incur lower premiums.

6. Your No Claims Bonus:

Don’t claim if you can afford not to. Probably one of the biggest factors affecting your premium, you are awarded this bonus annually, to a maximum of five or six years. A full bonus can be worth a 60% discount to what you would normally pay – well worth having.

7. Location:

People in the country pay less than in urban areas. There are fewer people around, so fewer people to crash into; also, there are fewer people around, so fewer crooks about, statistically speaking.

8. Job:

Statistically, if you drive to work you’ll spend much more time behind the wheel, so your chances of being involved in an accident increase significantly. Also, those with ‘safe’ jobs – doctor, solicitors and policemen pay the least. Workers in other industries do not prosper so well. People involved in the entertainment and media industries will pay higher premiums, as will those working in industries that involves lots of evening work – casinos, night-clubs, circuses and so on.

9. Security:

Use an immobiliser, alarm, steering lock, and detachable stereo, assuming you have them. All will contribute to lower premiums.

10. Policy additions:

If you have a number of people named on your policy, you are also covering their risk as well. To reduce your premium you can restrict the number of people on your policy.

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