4 factors you may not know that affect car insurance rates
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Have you ever wondered what determines the rate of your car insurance? Here is a list of contributing factors, as well as some bite-sized tips on how you can save on it.
1. Age of car
When it comes to car insurance, most cars follow a general rule of thumb: the older the vehicle, the higher the premiums. That is because older cars have a higher tendency of getting damaged due to wear and tear. On the other hand, newer cars usually have the latest technology and safety features that lower the chances of accidents.
Tip: If you have an older car, consider adding new safety technology such as blind spot sensors and a forward collision warning system.
2. Occupation
For some insurers, the nature of your job matters. For example, a sales agent may have to drive to different locations on a daily basis, thus increasing the risk of accidents and his insurance premium. On the other hand, a HR executive may only drive during off-peak hours, which makes him less likely to get into accidents. As a result, he may have a lower insurance premium.
Tip: If you drive frequently for work purposes, having a company car insured under your company’s name would be your best option.
3. Vehicle type
Some insurers develop their own vehicle safety rankings by using data from customers’ claims and analysing industry safety reports. Flashy and expensive cars are often deemed more susceptible to damage and theft, leading to higher insurance rates.
Tip: Before purchasing a car, do some background research to find out whether it has strong safety ratings by checking with your insurance agent.
4. Driving history
If you have a history of getting into driving accidents, you will likely have to pay a higher rate of car insurance due to perceived bad driving habits. On the flip side, a clean driving record could be useful for getting a discount.
Tip: Develop safe driving habits such as braking, cornering, and accelerating with care. This would greatly reduce the likelihood of getting into accidents. In addition, it is always good to check in with your agent a year after purchasing your car insurance, especially if your record is unblemished. Chances are, you could be in line for a discount.
Get more out of your insurance by having a better understanding of the coverages and limitations. Read on here to find out more about our motor insurance plans.
