Things that will affect your car insurance premium

Policy Type: The type of policy that is taken out will affect your insurance premium the most. Third party is the minimum insurance cover that you can get. Note: It is never advisable to get third party in you have just bought a brand new car.

Age: Statistics show that young drivers tend to have more accidents than older drivers. This is often shown in the high premiums that young drivers have to pays out.

Gender: Although many men would love to differ, it have been proven time after time that women are safer driver that men, as they make less claims expensive claims than men.

Group Rating: Insurance group ratings start from 1 to 20, the higher the group your car fall into, the more you have to pay. So unless you are super rich think twice about that sports car.

Modifications: If you make any modifications to your car it will often raise the price of your motor insurance premium. But some specialist insurance companies will actually reduce the amount of premium that is paid out if the car is modified. The thinking behind this is that if you spend thousands modifying you not going to drive in a dangerous manner and smash the car up.

When the car is kept: If your car is in a drive way or garage, your premium will be cheaper than if you parked the car on street.

Your No Claims Bonus: A full No Claims Bonus (NCB) can be worth up to 60% off your motor insurance premium. So don't claim if it is not necessary.

Location: The area you live can influence the amount of money spent on your premium. If you live in rural area you will tend to pay less than people that live in urban areas. Statistically there are fewer people to crash into and not so many thieves.

Job: People that spend a lot of time on the road will pay a higher insurance premium, as they are more likely to have accident. Builders and delivery drivers will fall into this category.

People that spent a lot of time at their desk tend to pay a little less on their insurance premium.

Security: Immobilisers, alarm, steering locks etc. Will all reduce the amount of premium that is paid.

Policy additions: The less people named on your policy, the cheaper your insurance will be. The reason for this is that you are covering them as well.

Date - 15/09/2006