Car insurance is a different cost for every person, everyone will have a different auto insurance quote. No two policies will have the same premium unless by total coincidence. This is because it is not only dependent on the type of vehicle but the risk a driver poses in terms of the claim’s history of all drivers on the road that fall into their category.
If you are looking for insurance right now, one sure insurance is an insurer that will look for methods to reduce your premium, such as considering the amount of excess that can be applied to a policy and whether there are security measures you can incorporate to lower the theft risk of your vehicle. It is never a good idea to stay with one insurer forever, but it can work out cost-effectively to have all your insurances with the same one.
Vehicle Groups
Where a car is positioned in terms of its insurance grouping will make a significant difference to your insurance premium. Whether it ends up nearer to Group 1 or Group 50 is the indication as to how much of an insurance risk it is viewed by all insurers. There is that general agreement among insurers to use the system, for instance, a vehicle with a higher engine size, so higher performance, or one of luxury value will be in a higher group than average and so nearer to Group 50, the highest group of all. Many cars will end up in the middle of the range.
You might be surprised by some of the vehicles that are considered higher or lower risk and so fall in a lower or higher insurance group, but it can be down to the cost of repairs for a particular model or brand and the level of built-in security.
It is never a good idea to mix young drivers and performance vehicles as this scenario will be deemed extremely high risk by insurers and will severely impact the cost of insurance. The only option then, because insurance is still possible, will be to opt for a higher excess to mitigate the significant cost. This means paying more in the event of a claim. Not too much more in terms of excess, or that would be defeating the object of insurance.
The Driver
The age and experience of drivers will impact an insurance premium. Young drivers, as mentioned, will pay more for insurance. The driving experience that comes with being older can also mean that you have built up many years of no-claim’s bonus because of driving claim-free. This will then, of course, mean that a significant discount is allowable off an insurance premium. Generally, the saving will mean:
- One claim-free year – 30% discount
- Two claim-free years – 40% discount
- Three claim-free years – 50% discount
- Four claim-free years – 60% discount
- Five or more claim-free years - 60/65% discount
Occupation will also have an influence on insurance premiums because certain professions are considered higher risk by insurers. Those where an insured is working irregular or long hours and where a job means a vehicle is exposed to situations where damage may occur, for instance. Our research has revealed a list of the top five that are deemed a higher insurance risk, in terms of premiums paid on average. The occupations that will cost you more in terms of your motor insurance premium include recruitment consultant, designer, social worker, counselor, and physiotherapist.
Level of Vehicle Security
Vehicles fitted with Thatcham-approved alarms/immobilizers are considered less insurance risk. They have already been approved by insurers. This is a guide to knowing, without getting down to specific brands, which alarms will automatically attract a discount in respect of their insurance premium.
When a vehicle is kept in a locked garage overnight, as opposed to on the roadside, it can attract a small discount with many policies.
Cameras fitted inside vehicles can assist in proving driving fault in the event of an accident and so can also mean lower insurance premiums. Insurance companies also like them because they encourage drivers to drive more responsibly when they know that they are on camera.
Those detailed above are the main reasons why insurance premiums will differ for different people. Primarily it will be down to the choice of vehicle and then be adjusted further by driver credentials. The age of the driver does matter, and those who have been driving for 5 years claim-free will be on the maximum no-claims bonus. This can mean up to 65% off the premium in some cases. Then if we can make our vehicle more secure because of an insurance-approved alarm or immobilizer system and by locking it securely away inside a garage at night, it can mean a lower insurance premium still. Onboard cameras are trending and finding favor with insurers. Check out the prices online with the above in mind and see how competitive they can be compared to your current insurer.
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