Every year there are many drivers who try to save on the price of their car insurance, which leads them to compare among the dozens of insurers available on the market. When doing so, it is common to find large differences between them, even though their coverage is similar.
Before taking out a policy, it is important to understand the many factors that the insurance company takes into account when calculating the cost of insurance. In this sense, each insurer has its own methods for determining risk factors, so it is advisable to obtain prices from different companies before making a decision.
To begin with, the age of the driver is taken into account, a very important aspect, since insurers have statistical data within different age ranges. Statistics show that younger drivers are more likely to have an accident, so it is common for those between the ages of 18 and 25 to pay higher premiums.
The place of residence of the policyholder also influences, as there are areas that are more congested than others and, therefore, more likely to suffer an accident. The same will happen if you reside in an area with high crime levels.
On the other hand, insurers assess the occupation of the policyholder, since, in some jobs, statistically, there is a greater risk of filing a claim, as well as the use that will be given to the vehicle. In this way, those who use their car daily to go to work will end up paying more than those who will use it punctually, which is why the number of kilometers traveled planned per year is also considered.
To all of the above we must add the policyholder’s driving history, so that those who have not reported accidents or lost points on their driving license will pay less than those who have. Additionally, depending on the additional drivers added to the policy, the price may increase or decrease significantly.
Vehicle-related factors that influence the cost of car insurance
In addition to the factors related to the driver, we find some aspects related to the vehicle itself that influence the final cost of the insurance. Among them we find the value of the vehicle, since, if it is expensive, it will cost more to repair it, as well as its maximum power. The more power you have, the faster you go and, statistically, the more susceptible you are to having an accident. Additionally, higher speed accidents result in more serious and costly damage.
Likewise, car thieves have a preference for some vehicles over others, and if your vehicle is one of the most stolen, you may end up paying more on the policy, as there is a greater risk of being stolen.
Beyond these criteria, the final import of the insurance policy premium will also depend on whether you opt for insurance with or without excess, as well as the type of coverage that is contracted, since comprehensive insurance is a lot . more expensive than the civil liability modality (third party insurance) that is required, at a minimum, by law to be able to circulate. Likewise, there are some optional coverages that in some cases can be included and that increase the final price.
