Why is car insurance so expensive? It's something that we've all pondered before without ever really knowing the answer. If you know why your car insurance is so dear then you can work out how to easily reduce the premium.
There are many things that can affect the price of your Car Insurance. One of the biggest factors influencing the premium you pay for car insurance is your driving record.
If you've been involved in accidents in the past and have claimed from insurance companies because of them, you're deemed to be a risky investment by insurers. This is will significantly push up the cost of car insurance for you.
Similarly, if you've been brought to court for driving offences and had your license endorsed, you'll have to pay more for your car insurance.
On the other hand, if you can prove that you're a reliable driver with a few years behind the wheel and no accidents or claims made, the insurance company is likely to offer you a very attractive car insurance premium.
Your location can also push up the price of car insurance. If you live somewhere with substandard roads and high crime levels, expect to pay more for your car insurance than people in areas with quality roads and low crime levels. It might not seem fair but this is the way car insurance works.
Insurers will also carefully consider your age before giving you a quote for car insurance. The general wisdom is the older you are, the safer you will be on the road. This translates into cheaper car insurance for older people and could be one of the main reasons why your car insurance is so dear.
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