7 Things That Affect The Price Of Your Car Insurance

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Car insurance is an important item in your budget if you have a car. But is the expensive insurance always the best? And are there other things to look for when choosing insurance?

The price of your car insurance is personal, but it can be difficult to see how the cost of your car insurance is calculated. A large number of individual factors influences the price.

Here we give you an overview of 7 of the most common factors that insurance companies consider when calculating the cost of your car insurance.

  1. Which car to insure

The price of your car insurance will be significantly influenced by which car you want to insure. If you have a large vehicle, it may be cheaper to insure, as larger cars are often safer in the event of a traffic accident. However, the opposite applies to the engine size of your car, as vehicles with a larger engine will have more horsepower and, thus, also a greater risk of injury or a higher replacement requirement for your company. There may also be a correlation between the age of the car and the cost of your car insurance. Older cars can be more expensive to insure as they break down more often and thus also more often need to go to a workshop.

  1. Your deductible

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Your deductible is one of the factors that affect the cost of your car insurance, which you can very quickly affect yourself. Your deductible is the amount you must pay if you report an injury to your insurance company. The higher a deductible you choose, the cheaper a car insurance you get as you take on a higher financial risk yourself.

  1. Your age

Your age is also one of the factors that significantly influence the cost of your car insurance. Previous studies by General.com show that especially new drivers are offered relatively expensive insurance, due to their lack of seniority. Your age at some companies also affects whether you can become an elite driver. 

  1. Your seniority

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Your seniority is one of the factors that have the most significant impact on the price of your car insurance. The reason for this is that your seniority matters a lot to how experienced a motorist you are. It is assumed that the more experience you have, the less risk there is of you doing injuries, and therefore you are more attractive as a customer. However, be aware that insurers measure your seniority differently.

  1. Your address

Your address also affects the cost of your car insurance. A study by General.com shows that buying car insurance is more expensive if you have housing in the city than if you have housing in the outer areas. 

  1. How far you drive a year

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How far you drive a year also affects the cost of your car insurance. The more you drive, the higher the risk that you are involved in a traffic accident or the car breaks down. Therefore, you will also find that the vast majority of insurance companies ask you to state how far you drive each year.

  1. Injury history

Your injury history is also one of the factors that can mean a lot to the cost of your car insurance. Your injury history may be saying something about how well you drive as a motorist, and therefore, some companies raise the price if you have previously reported injuries.

However, be aware that it is different from company to company how the cost of your car insurance is calculated. To get an overview of where you can get the cheapest car insurance for your car, you can compare the car insurance market.

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