Car Insurance Premiums are calculated according to the perceived risk of insuring you and your vehicle. This is quantified by historical data to identify certain ‘risk factors’. Read on to learn more about risk factors that affect your car insurance premiums.
Postcode
Where you live or where you park your car at night plays a very big part in the cost of your car insurance premium. This helps the insurer determine the likelihood of you making a claim based on historical data about claims and the theft record in that area.
Type of car
Remember that the maximum amount an insurer will pay out on a claim is up to the agreed/market value of your car. This means that what type of car you have and how you use it will affect you car insurance premiums.
- Expensive cars cost more to insure because of their potential write off amount as well as their cost of repair.
- Cars that are more attractive to thieves will be more costly to insure because they are more likely to be stolen and so the risk of you making a theft claim is increased.
- Cars with modifications may be more expensive to insure because their risk or value is harder to determine. Also modifications that enhance the car's performance increase the likelihood of an accident and make them more attractive to thieves.
- Imported or unique cars will cost more to cover because their cost of repair tends to be higher especially if parts are harder to find or must be imported.
- Safety and security devices installed reduce the risk of theft and damage and so discounts may apply.
Listed driver
Insurers use historical data to estimate the likelihood of a particular demographic making a claim. This is why your age, gender, claims and driving records is used to gauge your risk and to price your car insurance policy. Statistically the premium of male drivers will be more than that of their female counterparts and young drivers more than that of experienced drivers.
Mileage
Mileage can affect your costs because if you don’t drive your car very often you are minimising your risks of collision and thus claims. As a result you should be able to get a cheaper price on insurance.
Review online quote estimates from participating providers (though not all may be listed for every quote):
Budget Direct, Virgin Money, Ozicare, 1stforWomen, ibuyeco, Cashback, Retirease and AI Insurance.
Disclaimer
Nothing in this car insurance comparison service should be taken as constituting personal advice. It has been prepared without taking account of your objectives, financial situation or needs. Before you buy a car insurance policy you should consider whether it is right for you. Whilst policy features are listed here, it is only a summary and does not describe all policy details. Be sure to read the insurer's Financial Services Guide and Product Disclosure Statement before deciding to buy. Quotes are estimates of premiums of our participating providers. As with all insurance premiums, these are subject to underwriting and may change. See InfoChoice's Financial Service Guide. InfoChoice Ltd ABN 93 061 105 735 AFSL No. 349445