Moolr.co.uk | Short term loans

Factors That Affect Car Insurance Rates

Car insurance is one of those costs that we could really do without. An extra cost that can be huge, and really push up the costs of running a vehicle. There are many factors that determine how much you will need to pay for insurance. We took a look at factors that affect car insurance rates.

Factors That Affect Car Insurance Rates – Gender and Age

You will probably be well aware that young people attract the highest rates. And the reasons will be fairly obvious. But across the gender divide, even less surprising is that men will be charged more on average than women. However, older men have better rates than older women. Make you own conclusions as to whether this is fair! Presumably, the statistics of claims and accidents back up these rates and drive what people are charged. The variety in rates in older drivers is not that big we should point out.

Marital Status

It may be strange to learn that single people have more accidents than married people. I’m not sure why to be honest, unless it is a false statistic. False in that young people are less likely to be married, and the rashness of youth is the real reason here. Either way, being married could see you obtain a lower rate than if you were married. Worth spending £20,000 on a wedding? Possibly not! Obviously your previous driving record is also highly important in what rate insurance companies will offer you.

Location

Nost accidents happen close to home. And naturally some areas suffer from crime more than others. So where you live can have a big effect on what rates a company offers. Heavily populated areas, so within a big city, are also prone to accidents more than a rural retreat. An additional issue in some poorer urban areas is other drivers lacking insurance. The costs incurred by this issue will be passed on to those that do have insurance.

Factors That Affect Car Insurance Rates – Credit History

Many but not all companies will take your credit history into account when deciding a rate for your vehicle. So for those that do, ensuring your score is as healthy as possible will help your cause.

Employment Details

This may seem like a strange criteria, but insurers may consider those on the road more due to their job more likely to be in an accident. After all, someone who uses their car once a month is highly unlikely to be in an accident. Certain professions can be linked to being more careful drivers too. Such occupations may include paramedics, police officers and even monks!

The Car Itself

Some cars are more at risk from a thief stealing them, or causing accidents, and more. Its safety rating can affect the quote for insurance

Car-Related Factors

The car you drive significantly affects your rate, since some cars are more likely to be stolen, lack safety features that prevent accidents, or cost more to repair. As can vehicle size – larger vehicles tend to suffer less damage in crashes, for obvious reasons.

Larger cars are generally safer than smaller cars in an accident. Therefore, many larger cars with good safety ratings have lower premiums than smaller cars with otherwise similar ratings. However, cars with larger engines relative to body size tend to have higher rates – for instance, insurance for a sports car with a V8 engine costs much more than a small car with a V4 engine. Older cars are more likely to be beyond repair after an accident. Newer cars are more likely to have strong security features.

Factors That Affect Car Insurance Rates – You

Needless to say, you are a big factor in what rates you may get for insuring your car. Are you a careful driver, do you have a history of accidents? How old are you, what cars do you prefer? Have you made a claim before? Where do you keep your car when not driving? How much do you drive for your job? 

These are all big factors. Just remember to shop around, and get the best quote possible, as quotes can vary wildly from one provider to another.

 

  No Obligation Application