Factors that determine car insurance cost
If you are looking for car insurance, it is good to know what factors are taken into account when the cost or premium of your policy is calculated by the insurance company. It can include items such as age, credit score, car model or marital status.
Demographics play a large role in the calculation of insurance premiums and one of the first factors that is evaluated is your gender and age. Statistically, young males have been found to be in significantly more accidents than young women. Alternatively, older women have a statistically higher chance of being involved in an accident than older men. There has been some evidence supporting a theory that the accidents that older women are in, are relatively minor compared to older men.
The difference in the costs of premiums between older men and women is quite small though. Generally, there is a higher premium on young people as a lack of driving experience leads to a higher rate of accident involvement.
A factor evaluated by insurers that is often overlooked by people is marital status, statistics have shown that people that are married are in fewer vehicle accidents than people that are single. This statistic is more prevalent in men than women. However, your driving history will go a long way towards mitigating these negative effects on your premium if you have a good driving record.
Research has indicated that the large majority of vehicle accidents will happen close to your residence so if you live in an area that has a high density of traffic and/or a high rate of accidents then this will increase the risk of an accident and as a result, increase the cost of your insurance policy.
In addition, certain areas will have higher rates of car theft or damage and higher rates of uninsured drivers. Both of these factors will increase the chance of you having to make a claim so will increase your premiums. Finally, your credit score will be taken into account when determining the cost of your policy.
Will car insurance cost be considered when making a compensation claim?
If you are injured in an accident and making a claim against an insurance company with Accident Advice Helpline, car insurance cost may be a factor that is considered.
Compensation claims can be made with Accident Advice Helpline by calling 0800 689 0500 / 0333 500 0993.
Date Published: 14th June 2014
Author: David Brown