How much is car insurance?

Car insurance premiums vary from driver to driver and insurance provider to insurance provider. This is due to a number of factors used by the insurance company to create a risk profile. This risk profile is then used to determine what it will cost to have you insured.

While this sounds like it is dictated to you, you are able to have some influence over how your car insurance premiums are calculated by understanding the various factors used.

These factors include:

• Age, gender and driving history;
• Car value;
• Your location;
• Security devices fitted…and more

By using some of these factors you are able to reduce your insurance costs.

Decide how to buy insurance can reduce costs

There is also another factor that can influence how much your car insurance will cost. You can reduce your insurance costs by shopping around and getting multiple quotes before making a purchase. As mentioned above, different insurers will apply a different risk to you and therefore some insurance companies will insure for less than others.
Buying online also usually means a discount typically of up to 10% dependent on the provider. This reduction is passed onto you, as web customers cost less to service.

Always shop around when you receive your renewal notice. Determining factors and costs change, meaning that spending a short amount of time on a price comparison site could help you to make savings.

Summary

• Car insurance costs are made up of a number of variables;
• Some variables you can influence, others you can’t;
• Deciding on how to buy your insurance can provide a saving;
• Always shop around and don’t automatically accept your renewal as being the cheapest option.