6 Mistakes that make you pay more for car insurance
When it comes to what you’ll pay for the king’s car insurance, the actual amount is calculated using a mix of personal details and info about the car you want to insure. These details make up your unique profile, which helps us work out the risk that we’d be taking to cover your car, and this is what we use to calculate your premium.
Look, there are some details that you can’t do anything about, like your gender and age. The fact is, if you’re under 25, you’re going to pay more because you’re considered riskier to insure. But there are other factors that could be causing you to pay more than you need to for car insurance. Factors that you could potentially change to bring your premium down.
How you drive
We look at how you’ve been driving to get a sense of how risky you are on the road. The general rule is that if you’ve been in multiple accidents or claimed a bunch of times within a short timeframe, you’ll pay more.
Added to this, if you drive longer distances or are just on the road more often, it tells us that you’re more exposed to things going wrong because you’re behind the wheel more often. And this can also lead to higher premiums.
There are 2 possible solutions. Firstly, you could take an advanced driving course and bring your risk down as a driver, and secondly, you could drive less by using public transport or joining a lift club.
Your credit history
This may be a bit weird because it doesn’t really seem tied to the car itself, but a poor credit score can make you pay more. A bad score is usually because you haven’t paid your bills on time, you’ve missed payments, you’ve got high credit card balances, and you’ve kept old, unused credit accounts open. That sort of thing. A bad score tells us that you could be an unreliable payer, which makes you risky to insure… Which is why you could pay more.
The good news is that you can improve your credit score by paying your bills on time, lowering your credit card balances, closing unused accounts, and even getting a professional to give you advice on additional improvements.
Your car is expensive to insure
The make, model and year of your car is a huge factor that we use to work out how much you’ll pay. Essentially, if you’ve gone with something that’s expensive to repair or replace, it costs more to insure.
We’re definitely not saying that you should immediately sell your beloved wheels and get something you don’t want to drive just because it’s cheaper to insure. But there are times in life where you may have to relook your choices. You could be in the kind of financial trouble where selling your high-risk and expensive Toyota Fortuner in favour of something similar but less pricey makes sense.
Of course, there’s a less dramatic solution. You could also add safety features to your car to help lower your premiums, like a tracking device, an immobiliser, anti-smash-and-grab, and even window tints.
You’ve gone for the most expensive policy
Some policies cost more than others, which isn’t news. Our comprehensive car insurance policy is the king’s most expensive option, because it covers the most risk, including damage to your own car. It’s also usually compulsory if your car is financed, but if your car isn’t financed and is older, paid off, and cheaper to fix, then you could consider a cheaper policy.
The king’s cheaper car insurance options:
Theft and write-off: You’re covered for the total loss of your car (like if it’s stolen, hi-jacked, or in an accident and written off).
Third party, fire and theft: You’re covered for theft and hi-jacking, plus liability to other people and their property.
Third party only: You’re covered for liability for accidental injury to other people or damage to their property.
The excess amount on your policy
The excess noted on your policy can cause the cost of your insurance to skyrocket, because the lower the excess you choose, the higher your car insurance premium (and vice versa).
We’re definitely not saying that you should choose a super high excess so that you can make your premium the lowest of the low. But you could choose an excess amount that makes your premium more affordable, while still being reasonable to pay if you claim.
The type of driver’s licence that you have
Perhaps this is a strange factor, but the fact is that your driver’s licence can affect how much you pay for cover. For instance, if your licence is new, it says that you’re an inexperienced driver, even if you’ve been (illegally) driving for years. It also tells us that you probably haven’t had continuous car insurance, which again could make your car insurance cost more.
Another detail that can make your cover more expensive is your licence code. You see, a Code 10 (C, C1) licence = higher premiums than a Code 8 (B, EB) licence, which is largely because the Code 10 licence isn’t as thorough as a Code 8.
The king creates a holistic picture
We don’t just look at 1 detail when we create your profile and calculate your premium. This is a good thing, because details like the type of licence you have can’t easily be changed… Thankfully, there are things that you can either change or do differently which can make a difference and make your insurance cheaper.
Ultimately, you can talk to us. We’re not just about the fun. We’re about the (fun)ctional side of car insurance, too, and we can help you get a simple, cheap car insurance quote in minutes.
WhatsApp us on 0860 50 50 50 or click here to get a simple cheap, commitment-free quote.
Summary
Article Name
6 Mistakes that make you pay more for car insurance
Description
Insurance mistakes you’re making that cause your car insurance premiums to be way more expensive. Here’s what to do about it.
Author
The king
Publisher Name
King Price Insurance
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