Your car insurance premium is calculated on risk and your likelihood of making a claim in the future. It also takes into account lots of other factors like the value of your car, your age, your personal circumstances and several other factors. Below we try to explain how it is all worked out. Here’s how!
Car insurance companies classify all cars into what is called car insurance groups. These groups are based on lots of different factors such as repair costs for the vehicle, the engine size, top speed of the car and the likelihood of that vehicle being stolen.
All cars are placed into a specify car insurance group and range from between 1 and 20. 1 is seen as low risk and 20 is very high risk. So depending on what type of car you drive can depend on which group it is placed into. Sports cars are generally placed into a high car insurance group between 15 and 20. But smaller cars like the Ford Focus are placed between 1 and 10.
Your likelihood of making a claim in the future is your no claims status. Motorists that have built up there no claims over many years and been claim free, are less risk to the insurer and would therefore apply a no claims discount to the premium. Your no claims history information is one of the biggest factors that are used to work out the costs. If you have more than five years no claims you should see a reduction in your premium. Individuals that only have a few years no claims will pay a higher car insurance premium.
Modifications on your car are a big no in terms of insurance. Insurers see than as ways to attract thieves and statically they seem to be involved in more accidents. High performance cars will attract a high more expensive car insurance premium.
Depending on how you drive your car can also play an important part on contributing to the costs. If you are a safe and reliable driver that has a clean driving licence with no driving convictions then you would be classed as a low risk driver. This information is used by insurers to ascertain your risk factor, and the information is applied to the cost accordingly.
The amount of money that you pay in voluntary excess can make a different on the costs. By increasing the excess contribution you can reduce the premium. The higher the excess the lower the premium should be in theory.
For all your motor insurance needs take a look at our car insurance comparison and find the best car insurance deal for your circumstances and vehicle.