What Causes Your Insurance Premiums to Increase

May 31, 2021

Your insurance premium is impacted by several factors and some of these won’t be in your control. However, you can get a lower insurance premium by shopping around for the best deal.

car insurance

Here are some factors that can increase your insurance premium.  

Trying to Find Insurance on Your Own

You can find insurance on your own, but if you use an insurance broker to help then you will probably get a better deal. If you plan to go it alone then use an insurance comparison site that will source multiple insurance quotes from top providers for you.

Taking the Wrong Excess Amount

If you need repairs, are in an accident or your car is stolen, then the excess is the amount that you will need to pay upfront. If you opt for a low excess amount then your insurance premium will be higher. A higher excess amount will reduce the monthly premium, but you need to make sure that you will be able to pay the excess if you need repairs or if your car needs to be replaced.

Past Claims

An insurance company will look at how much you have claimed in the past, which will be used to determine your premium. You will benefit from lower premiums if you haven’t claimed often. If you ever need repairs to your vehicle, you need to make sure that it is worth claiming for. Minor incidents might be best to pay for out of pocket instead of claiming.

Comprehensive Insurance Costs More

Comprehensive insurance is the most expensive insurance and with this, you will need to pay higher premiums. However, comprehensive insurance covers all eventualities and if you have financed your car then the bank may require you to have comprehensive insurance.

Driving Luxury

The more luxurious and expensive your car is then the higher the premium. This is due to the costs of repairs and replacement being a lot higher for these vehicles.

Where is Car Spending its Nights?

Your insurance premium is impacted by where you live and where your car is parked at night. If you live in a high risk area or if your car is parked outside at night then the premium will be higher. If you park your car in a locked garage and have adequate security plus a car tracker and an alarm installed then the premium will be lower.

Using Your Car for Work

Your insurance premium might be higher if you use your car all day for work because the risk is often seen as higher.

Age and Gender 

Younger drivers will usually pay more for car insurance as they are seen as a higher risk. Also, men are seen as a higher risk than women, which means that male drivers may pay more for insurance.

If you are looking for car insurance then shop around for the best deal that offers you the cover you need at the right price.

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