This is a very interesting question and one that is asked all too often. People often wonder which aspects factor into the ultimate premium they have to pay in order to have their car covered by an insurance policy. The answer to this question is certainly not a simple or straightforward one. There are various elements and factors that
come into play when determining the car insurancepremium you will end up paying.
No consumer pays the same amount for car insurance than another. There are different factors that determine the ultimate premium that every consumer needs to pay. Their personal circumstances, history and the type of car they drive all factor into this. Thus, it is impossible for anyone to have the same car insurance premium.
The different factors that go into determining the ultimate premium we pay include the following:
- Age of the driver: The age of the driver will definitely come into play when determining the price of the car insurance premium. Drivers that are under the age of 25 automatically pay more for their insurance than those that are older and more mature. This is simply because of the statistics that prove that younger drivers are statistically more likely to be involved in accidents than older people.
- The type of car that you drive: Naturally this factor will come into play. The type of car you drive, its replacement value and its market value will all factor into the ultimate premium you need to pay.
- The neighbourhood you stay in: As with any type of home or car insurance, the type of neighbourhood that you live in will also impact on your premium. Some areas are more prone to vehicle crime such as breaking ins and theft and this increases the premium. If you lock your car in a garage during the evening or stay in a security complex, this all counts in your favour towards making the premium more affordable.
These are only some of the many types of factors that determine the ultimate car insurancepremium that we end up paying.