Car Insurance PremiumsA number of factors are used to guage the risk involved in insuring a driver and their car. The higher the risk, the higher the premiums. Factors commonly used are:
Age
Your age is one of the main factors. Expect your car insurance premiums to be high if you are a male driver under 25 years old. It is still best for younger drivers to take out their own car insurance policy, instead of being insured as named drivers on a parent's policy. The young driver can then start to earn a valuable no claims bonus on their own car insurance premiums.
Car Insurance grouping
The insurance grouping of a car indicates how the insurers rate how big a risk the car is. Group 1 is the lowest and group 20 the highest. Most family cars, with the exception of high-powered variants, fall into groups 6 to 12. A lower group rating will reduce your car insurance premiums.
Endorsements / Convictions
Convictions for dangerous driving or drink-driving offences will significantly increase your car insurance premiums. Endorsements for speeding and other offences will affect the premiums you pay.
Engine size
The size and power of your engine are important factors. The faster it goes, the bigger the risk for the insurer. A Citroen 2CV is less risk being a Group 1 car than a Porsche 911 Carrera which is a Group 20 car. Your own vehicle car is probably somewhere in between.
Health problems
If you have health problems you may have difficulty obtaining a policy Some illnesses must be declared on the proposal form.
Occupations
Some occupations are more associated with a hazardous lifestyle and risk. Publicans and journalists are two of the more risky occupations.
Parts and Labour costs
The costs of labour charges and parts play a significant part in your car insurance premiums as they influence how much it will cost to repair your car after any accident. Parts for a specialist sports car can be very expensive.
Safety features
Vehicles fitted with airbags, crumple zones, side impact beams and other protective features which may reduce the effects of an accident are considered in the car insurance group ratings.
Security features
Security features are a major factor. Modern cars with strong locks and effective immobilisers usually qualify for a lower rating than older designs. Fitting after-market security systems to a car that does not have security fittings as standard may help to reduce your premium.
Type of use
How the car is used is a consideration. Domestic use and commuting are a lower risk while use for commercial purposes will be more expensive eg. a self- employed person using the car for work will have higher car insurance premiums.
Where you live
Because different parts of the country have different risks associated with car crime and accident rates, where you live is important and this risk is rated by postcode. If you keep your car in a locked garage overnight your car insurance premiums can be reduced.
Find out how you can reduce your car insurance premiums
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