How much does car insurance cost?

Car insurance prices vary from person to person and from provider to provider. This is one reason for the huge growth in comparison websites. Providing a user with the ability to search multiple insurance companies has given the customer the ability to make an informed decision.

That said, it is also useful to understand what factors are used to assess the risk and therefore determine the cost of car insurance.

What decides car insurance costs?

There are several factors used by insurance companies in determining your car insurance premiums. It should also be said that each insurer has its own formula and applies these factors in different ways. Hence you will often get a higher quote from a one insurance company against another.

These factors include:

• Your age, gender and location;
• Your driving history;
• The replacement cost of the car;
• How much driving you do each year;
• If the car is parked off road or in a garage;
• Whether the car has security devices fitted;
• If the car has been modified.

How can I influence these factors and reduce costs?

There are certain things that you can do to reduce your car insurance premiums. These include:

• Having an alarm or immobiliser fitted;
• If possible, parking the car off road or in a garage;
• Providing the correct replacement value of the car – This will reduce each year so make sure this is reflected when you get your quotes.

Summary

There are several factors that are used to decide what your insurance premium is. Some you will have influence over, others you will not. By trying to reduce the risk your pose to an insurer, the less you will pay for your insurance.