The Factors That Affect Your Insurance Premiums

The scariest thing about driving is finding the right insurance quote. It doesn’t matter whether you are an experienced driver or a teenager because insurance companies don’t care. Some will quote you a massive amount even if you have years of experience and no claims bonuses. As the waters are so muddy, it is a good idea to analyze what factors affect your policy. Then, you can avoid them to get a cheaper rate on your next deal. If you want to find out more, continue reading.

Your Age

The reason teenagers get quoted so much is because of their age. Rightly or wrongly, the companies assume that they are too immature to drive. That is to say, they are more likely to speed and more likely to have an accident. As such, if you are under the age of twenty-five and a first-time driver, your quote won’t be cheap. Unfortunately, you have to find the money if you want to start building your policy up so that the price drops.

Your Experience

It doesn’t matter if you are twenty-one or fifty-one if you have never driven a car before. In the eyes of the insurance company, you are a liability due to your lack of experience. Because you have only just passed, you are more susceptible to hazards and not driving carefully. As such, you need to show them that you are capable of driving without incident. Sorry to be the bearer of bad news, but you can only do that if you have the years on your license. Otherwise, it is like trying to get blood out of a stone.


Previous Accidents

One sure-fire way to boost your premiums is to have an accident. To the insurance company, an accident shows them that they are more at risk. As such, they are more likely to spend money covering the cost of your accident. With that in mind, they bump up the price to cover the difference. The web page says that they will even try and shirk responsibility. What you have to do is to try and avoid an accident at all costs, even if it wasn’t your fault. You can also talk to a lawyer to clear your name so that it doesn’t show up on your record.

Credit Score

Believe it or not, they also take your credit score into account. You might be wondering what your score has to do with your driving ability. And, you are right to be skeptical. However, it has nothing to do with your driving. In this case, it has everything to do with your ability to pay your monthly premiums. They are a business after all, and they want their money. Thankfully, this is an aspect you can change if you go to The tips they provide are brilliant at increasing your score. Not only will that help your insurance costs, but it will also help with bank loans and mortgages.
As you can see, there is a range of factors that affect the cost of insurance. All you can do is try and manage the ones within your control.


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