According to the Association of British Insurers, the average cost of car insurance premium is $471 per year. This is a total of $39.25 per month. According to research, car owners have little information concerning Car Insurance policies. Well, car insurance premiums depend on several factors.
Factors that determine the amount of premium you pay for your car
The type of car you have. Insurers usually set a premium that is equal to the risks you face as a driver. The firms work out the risk and determine the amount of premium you should pay. The make, model, age, security, value and size of the car also affects the price you need to pay for your cover.
The driver’s experience and age
Young drivers suffer the difficulty of acquiring a suitable insurance quote since they are more likely to be involved in accidents. For people between ages of 17-19 suffer the most since they do not have the experience to prove they are valid drivers.
More experienced drivers
More experience results in cheaper insurance costs. People between ages 40-70 have the cheapest insurance quotes. However, after 70 years due to old age, the price becomes higher.
Black box Car Insurance
Notably, younger drivers can lower the costs by going for driving courses. Also, you can get the black box car insurance which is fitted into your car and ratings on how you drive and accelerate are recorded. If you are a good driver, your premium will be lower.
The Claims you made before
Car Insurers will take into account the claims you had made before to determine your premium. Customers who have made no claims over the years will receive more discounts rather than those who make frequently.
If you make insurance claims regularly
Once you make a claim, your insurer believes that there is a high probability for you to make a similar claim. Notably, there is no certain amount of premium that will be added to your car insurance. It mainly depends on the Company.
What to do
If you made an insurance claim five years ago, it is important to disclose the information to your insurer so that they can know how much premium to charge you.
Types of Car Insurance Policy
They are a wide range of policies which you can pick from. They include Young drivers Insurance, Multi-car insurance when you have more than one car and Family Car insurance if you have many drivers in your household, Classic Car insurance which is expensive to repair.
Other types of Car Insurance
Car insurance for people who are over 50 years which are for drivers who are more experienced and are aged 50 years or over and Business Car Insurance for people who use their cars for work so that you are covered fully.
To know more about car insurance, you can visit a money expert, and they will be able to provide information on an insurance policy that will be suitable for you and your budget. Moneyexpert.com have the cheapest car insurance rates available.