We all want the best car insurance price possible, but finding very cheap insurance companies isn’t always easy. What sort of factors do insurers take into account when they provide you with your quote?
1. The car’s value
Of course, a prime consideration is the vehicle’s value. An older, less valuable car will likely not cost so much money to repair, and the threshold for writing it off altogether will be lower. Many people fall into the trap of overvaluing their cars when searching for an insurance quote – be sure to get an independent valuation before you apply.
2. The vehicle’s engine size
Car insurance quotes are calculated based on your risk of having or being involved in an accident, or the likelihood of your vehicle being stolen. If you have a powerful, desirable car it’s going to be more of a target for car thieves, and you’re simply far more likely to lose control of it when driving – as such, they’re usually expensive to insure.
3. Where you keep the vehicle
Another key element of the quote is where the vehicle is stored overnight. If your vehicle is outside on the street, it’s far more likely to be broken into or damaged than a vehicle that is kept in a secured garage. Finding somewhere safe to put your car at night not only keeps it in better condition but will potentially make it cheaper to insure.
4. How many miles do you drive a year?
When you get your car insurance quote, you’ll be asked what your annual mileage is. Again this is to calculate the statistical odds of you being involved in an accident – if you’re on the road more, you’re more likely to be involved in an incident. So someone who does 2000 miles a year is much less likely to claim someone who does 10,000 miles.
5. Have you made a claim on your insurance before?
The so-called ‘no clams bonus’ can be a great way to save money on a quote, as it shows you have a proven record of safely driving as you haven’t needed to claim. The longer you don’t claim, the higher the bonus will be.