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Top Factors That Could Affect Your Car Insurance Premiums

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While shopping for car insurance one needs to consider various factors that would affect the premium of the insurance. It might look more tempting to opt for a low premium but in that case your deductibles would be higher thus one needs to strike the right balance by considering all the factors and understanding what you need exactly.

Here are top 6 factors that may affect your Car Insurance Rates:-

  • Model and make of your car: One of the primary factor that determines the premium of your car insurance is the model of your car. The fuel type of your car plays a role in this as well because many insurance companies would charge you’re differently depending on whether your car runs on petrol, diesel or CNG. The engine of a diesel car can start to show effects of aging much faster so in case of diesel cars the premium would be higher by default.
  • Safety rating: The manufacturers would test a car to check how safe it is before the production model is rolled out. Based on these tests the cars would get a safety rating and it is obvious that more expensive cars would have a better safety rating. A better safety rating ensures lesser damage in case of a crash or if you are driving through bad conditions. This makes it clear why the car insurance premium would go down with better safety ratings.
  • Registration location: The location where the car is registered plays an important role in determining the insurance premium. Some places are more crowded and thus increasing the chance of your car getting damaged or getting involved in an accident due to heavy traffic. Also many places are more prone to car theft and extreme weather conditions thus affecting the premium that you need to pay.
  • Engine Capacity and horse-power: It is often seen that cars with higher engine capacity and more horse-power would be charged higher premium as decided by the insurance companies. This is especially the case in case of comprehensive car insurance policies and one must take these factors into account. Also based on the model of your car if the spare parts are costlier then the premium goes up by default.
  • Age and Gender: It is seen that the age of the customer as well as the gender matters when the premium is determined. It is seen statistically that the age group of 18-25 are more prone to crash or damage their car due to reckless driving apart from various other factors. People above 50 are charged less premium and younger people with new license are charged the highest. Women are often asked to pay less premium because it is again seen statistically that women are much safer driver, involving in much less accident. In fact in many places even married people are charged less premium as it is considered that married people drive more safely.
  • Anti-Theft Device: There are many anti-theft devices available in the market nowadays. The premium of the insurance also depends on the security system and anti-theft measures that are taken. Cars with advance technologies such as tracking, cruise control and ABS can play are role in determining the premium as all these makes the car safer.
Also Read:  Insurance Mis Selling – Types and Reasons

As you can see, there are several factors that might impact the car insurance premiums that you pay. It’s time you paid heed to these aspects and got your premiums into the more manageable territory.

Shailesh Kumar

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