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Factors that may be affecting the cost of your car insurance

1 day car insurance can be a costly expenditure, and there are many factors that influence just how much of a drain it puts on your bank balance. It is an essential outlay, but when you are aware of what is driving up the cost, it makes it easier to try and change those factors.

Here are three major factors that could be driving up the cost of your new driver car insurance:

It’s a postcode lottery

It might seem unfair that your driving safety standards are measured against the parameters of other drivers in your neighbourhood, but this is a common factor that insurance companies use to set your premiums. The logic behind this is that if you live in a neighbourhood where there are fewer accidents and less vandalism, the chances that you will need to make a claim are smaller. The lower risk results in lower payments and vice versa.

Your car defines the terms

Insurance is calculated in a variety of ways, but the age and model of your car are both decisive factors in generating the price of your car insurance. More powerful cars tend to elicit higher quotes for car insurance premiums. Certain models are also automatically designated to a higher band of insurance. Companies will tend to look at any modifications made to the car as well when they calculate your costs. Features such as a dashcam, tinted windows and Autonomous Emergency Braking can impact positively or negatively on your overall insurance charges.

Your driving prowess

It might have been a moment of madness, but speeding past a camera or mobile unit can impact the cost of your car insurance premiums for years to come. Although the points only remain on your licence for three years, insurance companies tend to ask for details of any penalties that have occurred in the last five years. The more points that are on your licence, the higher the cost of your car insurance is likely to be.

Luckily, insurance companies also take other features of your driving into account, such as your annual mileage and whether or not you have built up any time period without making a car insurance claim. The longer you keep a no-claims bonus going, the bigger the reduction you are likely to see in your insurance payments.

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