How do they calculate our car insurance in the UK?
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Have you ever wondered "how do insurance companies calculate our car insurance in the UK for a year?" Knowing the answers to this question can help save you hundreds of pounds if not more on your car insurance each year. Below are the main factors that influence what your premium is to be for a year.
- Driving History - Let the company know about any previous driving experience you have. Whether you were previously a named driver on a policy or have a no claims discount, you will be entitled to reductions. You can even save up to 85% off your insurance with a high no claims bonus. If you have no bonus, try a Pass Plus test which can save you 30%.
- The car - The size of the engine is a big factor. Sticking with a 1000cc car will be much cheaper than a 2000cc turbo engine. Also any modifications to the vehicle will increase your premium. Add an alarm or immobiliser to save extra.
- Your Driving - Your annual mileage, which licence you hold or any previous claims will all influence your premium. Also if you have penalty points on your licence you can expect to pay extra.
- Where you buy - Buying your insurance from a comparison site lets you see the different prices of different companies easily. Many companies also offer a 10% discount for purchasing online.
- Personal Details - Where you live and your gender can also affect the cost of your car insurance
So now that you know how an insurance company will calculate your car insurance in the UK, you can start saving!