Factors which impact car insurance premiums

IRL/GB

There are many factors which can impact car insurance premiums but what can you do to bring costs down?

Recently a well-known advertisement for a car insurance company mocked the tried and tested method of ringing around a number of firms for different quotes but this is still the best way to get a good deal.

If you do the legwork you can get a much better quote than just leaving it to chance or sticking with your current insurer.

Same car, same driver, same personal details and yet you will get wildly different results when you ring multiple insurance companies.

Simon Moynihan, the Communications Director and founding member of Bonkers.ie said that in the current climate:

“it’s not aspirational for young people to own a car”.

“In our office, all except two people [for which having a car is a necessity] take public transport due to the hassle factor and the cost.

“We’re very fortunate to live close to good public transport links but for people regularly making the rural-urban commute, having a car is a necessity.”

Seven main factors that influence costs

  1. Driving experience (driving licence type)
  2. Age of main driver and additional drivers
  3. Claims history (No claims discount)
  4. Type of vehicle (age, engine size, value)
  5. Where you live – and where you park your car at night
  6. Your profession – but mainly if the car is used for work
  7. Type of insurance (Comprehensive or Third Party Fire and Theft)

Top tips to get the best deal

Another way to reduce costs is to consider a new payment plan. Insurance policies can cost more, for example, if they are paid on a monthly basis. If at all possible you should really consider paying the full amount for the premium up front.

Stay longer with your insurance provider as remaining with the same provider for a number of years could reduce your premium and you will have some bargaining power.

Shop around with multiple insurance companies. If you are not happy with a quote or the service from your existing provider consider taking your business somewhere else. Do not be loyal to a specific insurance provider as most often they do not reciprocate.

Add another driver onto the policy as in some instances, by adding another driver, your premium could be reduced.

Consider the clever technology of a telematics device that allows insurers to understand a driver’s location, driving behaviours and more. If you are a skilled and responsible driver, you may benefit from installing a telematics box.

Consider a higher excess on your policy because by paying a higher excess, which is the amount you contribute towards your claim you could also reduce the price of your premium.

IRL/GB


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