What affects your car insurance premium?

Car insurance is mandatory thing in most of the countries. It is important since it covers most of the damage made in the accidents, and they are pretty often. Nowadays everybody is rushing so it is no wonder that once in a while we all get in to trouble. Luckily, our car insurance covers most of the expenses.

Now, let’s see what defines our monthly premium amount. First there is value of the car. Of course it isn’t the same if you are driving Lamborghini or some old Dodge. One tail light of Lamborghini costs more than whole Dodge, so the insurance company has to cover much more potential damage in case you are driving expensive car.

Second important thing is your age. If you are young and beginner behind the wheel, it is more probable that you’ll make the mistake which will result in accident. Also, young drivers are much more prone to some bad things such as speeding or drinking and driving. All of these facts influence the risk level so they increase your quota. Of course, there is nothing you can do about your age, so this factor is pretty much constant. Older people are also risky group of drivers. They don’t lack experience but they don’t have the reflexes and perception they used to have. That gap between expectations and actual capabilities is often perfect ground for making errors.

Men in their forties and thirties will pay the least because they have all prerequirements to be super safe drivers. They have substantial experience and they are on their mental and physical peak. Also, they are mostly all settled down and it’s not likely they will be partying and driving. Some companies are giving even better quotas for women, as they are statistically more responsible drivers than men. In Europe those benefits are ruled out due to gender equality laws.

Another important thing when calculating quota is driving record. If your record is clean and if you don’t tend to make any foolish stuff while driving, your quota will be pretty low. Of course, if there is record of speeding and breaking traffic rules, that signals that you are acting risky and it will increase your quota. Luckily this segment of calculations can be influenced. If you start acting responsibly and stop making errors, your previous strikes will be erased from the record and you’ll have to pay less. Also, taking part in accidents is the thing that can influence these quotas. If you were involved in accidents it will raise the premium, and if you caused the accident it will increase it even more. So, the only thing you can do is to watch and be cautious. These records are also being erased if you improve your behaviour through time.

Some of the companies have some special discounts so you can have discount if your whole family take one joint policy for all the cars you possess. Also, some of them are offering discounts for students and handicapped.