What can impact your insurance premium?
There are a number of factors that can affect your car insurance premium, some of these you can change and others are completely out of your control.
Your credit score
As with almost everything today your credit rating or score plays a part in your insurance premium. Your credit rating can impact any discount you are offered and thus it makes sense to get your credit record in order to bring your premium down.
The history of you driving behaviour is one of the key factors that determines your premium. If you have a history of speeding tickets and accidents (even those for which you were not at fault) you may end up paying a higher premium. If you have been accident free for a period of time, some insurance companies say 3 years some 5 years, and then you may be able to ask for a discount on your premium.
What you do
Some occupations are considered a higher risk for insurance than others, especially those in jobs that keep them on the road more often such as travelling salesmen. There are a number of occupations that have been determined to be less risk such as paramedics, airline pilots, nuns and even insurance underwriters.
Having a baby
If you are about to become a parent some insurers offer a discount for this life changing event. If you have a life changing event it is often wise to contact your insurance company.
Rent or Own your property
Owning your property often makes a big improvement on your premium, for one it can improve your credit score and then some premiums come down just because you have bought your home. It is also worthwhile considering using the same insurance company for your home and car insurance as a discount is often given for this.
You are completely in control of this. What you drive makes a huge impact on your insurance policy as insurance companies can obtain so much information to help them determine your premium. They will consider the car itself, its safety rating, how likely it is for the car to be stolen, the age of the car, the engine size and the value. A rule of thumb is that the more expensive your car is the higher your premium will be.
How old you are
This is not the most fair of factors but it is nonetheless one that does make a difference. Insurance companies know that people at a certain age are more or less likely to have an accident or claim on the policy. Young drivers who lack experience often pay a higher premium as do older drivers over 70.
What do you use the car for
If you only use the car to drive from home to work and to do normal family things you may pay a lower premium. If, however you use for vehicle for work or use the road a lot you will pay more.
One thing that can make a difference to your premium is to save the insurance company money. If you still receive your statement and other communication in hard copy on paper in your mailbox you may be paying a higher premium. Switch to a paperless billing and communication and you may see your premium drop.
Where you are
Where you live or where you work, if your car is left there during the day, both make a difference to your premium. It has nothing to do with how good a driver you may be where you live makes a difference and insurance companies know that most accidents happen close to home and they also know about crime levels in the area that include break ins and car theft. All these things can put a premium on your monthly or annual payment.
These things impact your insurance premium and there a good number that you can change. If you want to reduce your premium then take a close look at these points and if you can make some changes then do so.