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Ever wondered how insurers calculate that all-important price? Curious as to how to cut the cost of your car insurance?  The following factors all have an impact on the premium you pay:

What you drive

Your vehicle will be assigned an insurance group based on claims trends and costs. Typically, the higher the value and risk, the higher its insurance group and the higher the premium.

How much you drive

If you’re on the road all day every day there’s a greater chance of you having an accident. It’s all about opportunity and exposure to risk when it comes to insurance. On the other hand, if you have low annual usage, it’s considered you’ll have less chance of having an accident, making your car insurance cheaper.

What you do for a living

Your occupation can have an influence on the premium you pay. Some jobs are considered less of a risk than others (office-based jobs for example) and therefore result in cheaper premiums. This is particularly relevant if you use your vehicle for work too!

Where you live

what many don’t realise is that where you live can affect your car insurance. Insurance works on trends and if you live in an area that has experienced a reported low claims frequency & cost, this could result in lower rates & lower premiums. This is due to a number of factors but safety of your vehicle whilst it is parked up is one influencing element.

How old you are

This is one time you’ll wish you were older because older drivers typically pay much less than their younger counterparts!

How you drive/your experience

It’s common sense that experienced drivers with a low or no claims history will typically pay less than drivers who have made multiple or expensive claims or new and/or young drivers as they are considered to be a lower risk.

Stay within the law

Penalties imposed by contravening traffic laws and regulations now only cost you in fines by increase your premium too!

Whether it’s just you driving

Do you share a car with a spouse or family member? If so, they could actually reduce your premium! Adding them to your policy if they’re an experienced, careful driver with a history of low or no claims could see you paying less for your policy.