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.

How much does car insurance cost?

The cost of car insurance boils down to the value you put on your car as a driver.

The drivers at one end of the scale are those who have a modest budget and can only afford a ‘pre-loved’ car.
These drivers tend to buy basic third party insurance because if the car is damaged or stolen, they know it’s not worth repairing or replacing.

Many of these drivers do not intend to make any insurance claim, but just want to stay within the law. They are looking for the cheapest car insurance that can legally put them on the road and are not willing to pay a penny more than they have to for it.

• Third party only is the cheapest option and only covers damage you cause to the third party’s car and any injuries to other drivers, road-users and passengers, including those in your car.
• The policy also covers you against the costs of any emergency treatment you need as a result of the accident.
• Third party fire and theft is a leg up, covering you for the same as third party only but also fire, theft and attempted theft.

At the other end of the scale are drivers who take pride in their car and love driving.

These drivers tend to buy comprehensive insurance with lots of add-ons because they want to keep their car in as near to showroom condition as possible.

• Comprehensive insurance is the most expensive type cover and comes with lots of optional add-ons like courtesy cars, cover for personal possessions in the car and legal cover. Both you and your car are protected, as is any third party.

The rest of us tend to fall somewhere between the two, depending on our budgets.

Providing you have the minimum third party cover as a driver, you comply with the law.

The next big factor that affects the cost of your car insurance, well, we’re sorry to say, it’s you again.
Complacency is another key reason why too many of people tend to pay more for their car insurance than they need to. When it comes to renewing car insurance, too many people just accept the existing insurer’s quote without bothering to look around and see if they could get a better deal elsewhere.

Using an insurance comparison web site for example, means, they might find a deal that offers the same or similar cover for less money.

The car insurance market is competitive and lots of insurers will offer incentives for you to switch cover to them.

By now, you should see that the biggest factor affecting the cost of your car insurance is probably you.
The price you pay for your car insurance is the consequence of your choices as a driver over the car you drive, your attitude towards your car and the expectations you have as value-for-money from your insurer.
If you want to save money, you may have to change the way you think about your car