Planning to buy a car insurance to protect yourself from future car related expenses? Apart from making sure the insurance provider offers impeccable post-sale customer service, paying attention to factors that contribute towards premium calculation is of utmost importance.
Talking about that, below are the 5 factors that affect car insurance premium.
1. Location of registration of the car
Cars in locations with higher population and congested roads attract higher insurance premiums due to higher chances of road accidents.
2. Age of the insured
Older drivers are more likely to run into an accident compared to people in their 30s and 40s. On the contrary, younger drivers in their 20s are charged higher premiums.
3. Your marital status
Married couples have been historically found to be more careful when on the road, are less distracted by gadgets and pay more attention. Hence, insurers are more likely to offer married couples better deals on car insurance.
4. The type of car being insured
Insurance rates are also affected by the historical accident data of the car. If other drivers having the same car as yours have been in an accident, the rates will be decided based on this data. That said, opposed to the myth, insurance premiums are decided based on the cost of repair of car instead how safe the car model is.
5. Your previous driving record
Many factors go into determining your driving record including previous claims you have made, safety features installed in your car etc. If you have a bad driving record, the car insurer has potential risk in insuring you and hence they would rather charge a very high premium or not offer you an insurance at all.
Read Also: 7 Factors That Affect The Premium you Pay For Car Insurance
Alisha Antil is your best financial helper for insurance. She has a vast experience in finance and insurance and provide to you the expert advise in insuring your property and health. She has in depth knowledge and has written more than 1200 blogs on topics related home and car insurance. She also provide you with knowledge about home improvement and cooking.