Learn More About What Contributes to Your Policy Premium

Have you ever wondered what factors contribute to the cost of your car insurance? It may seem like a complex equation, but let's break it down. Insurers consider various elements related to your vehicle, personal details, and driving habits to calculate your premium.

 

Vehicle Details

The characteristics of your car significantly influence your insurance premium.

  • Make, model and age:

Newer or high-value vehicles often come with higher premiums due to increased repair or replacement costs.

  • Insurance group:

Cars are categorised based on factors such as price, performance, and safety features. Safer vehicles with advanced security measures may qualify for lower premiums.

  • Modifications:

Alterations such as custom exhausts or tinted windows could impact on premiums. Conversely, safety enhancements such as Autonomous Emergency Braking might reduce costs.

 

Driving Habits and History

Your behaviour behind the wheel and your driving history are crucial determinants of your premium.

  • Annual mileage:

Higher mileage can lead to increased wear and tear, raising the likelihood of claims and, ultimately, of your premiums.

  • Driving record:

Previous claims, penalty points, and convictions affect your perceived risk as a driver.

  • Location:

Your home base influences premiums due to factors such as crime rates and accident frequency in your area.

 

Policy Details

Various aspects of your insurance policy structure can affect premiums.

  • No claim discounts:

Accumulating claim-free years earns discounts, reflecting your history of safe driving.

  • Excess:

Opting for a higher voluntary excess can lower premiums, but it means you'll pay more in the event of a claim.

  • Add-ons:

Additional options such as cover for personal belongings impacts on the overall premium.

 

Credit History and Insurance Record

Your financial and insurance history can impact on premiums.

  • Credit record:

Maintaining a good credit history demonstrates financial responsibility and can lead to lower premiums.

  • Insurance history:

Having a consistent insurance record may result in more favourable premium rates.

 

Take control of your insurance costs and drive with peace of mind knowing you're making informed choices. Remember, a proactive approach to managing your insurance can lead to significant savings over time.