Calculating an insurance premium is a complex endeavor that takes into account a variety of factors. Although the color of your vehicle and how many doors it has have often been considered important factors, the fact of the matter is that what really matters is the driver, his or her experience, and the cost of the vehicle.
In other words, it’s not that hard to figure out what variables will drive the cost of your insurance premium up or down. And, unfortunately, most of the factors you cannot control. You are therefore left to wait it out.
Experience plays an important role and so does the age of the driver. Obviously, younger drivers will pay more for their insurance because they tend to be involved in more accidents. Male drivers also happen to get into more accidents than woman. This leads to a well-known phenomenon where insurance for young male drivers is quite high, sometimes prohibitively so.
Back to experience, it also plays a key role. Experience is measured by how long you have had your driving permit. Drivers with less experience will pay more than other drivers.
Then comes the car. Although some models have a history of being involved in more accidents than others, the reality is that it is more than likely the price of the car that will increase or decrease your insurance premium.
“Obviously, a more expensive car will be more expensive to replace or repair than a more affordable model, so you can expect a more expensive car to have a higher insurance premium”, says a finance and insurance specialist at Alkier Motor Sport Group.
Where you live will also play an important role in determining your insurance premium. Cities tend to have more car-related crimes like vandalism and theft than country areas, so owners living in the city should expect to pay more.
In the end, what really matters is risk. The greater the risk of the driver getting into an accident, the higher the cost of the insurance policy.