According to the insurance laws of United Kingdom, it is mandatory for new as well as old car owners to purchase car insurance. Car insurance offers the basic coverage against damages incurred at the time of an accident. It provides coverages like personal injuries, damage to the car, damages to the car or property of the other party involved in the accident etc. Car insurance quotes online UK is a great way to learn about the rates being offered by the car insurance companies in UK.
There are multiple factors that can ultimately influence car insurance premium. By knowing these factors, one can very well get a clear understanding of how car insurance rates are determined and how it can secure lowest insurance rates. Some of these factors are being pointed below.
Factors that influence car insurance premium
Age, Gender and Marital Status:
Car insurance firms determine auto insurance rates on the basis of certain personal factors such as age, gender and marital status of their customers. Age matters most in case of people who are less than 25 years or who are leading a retired life. Both these categories of people have to pay higher car insurance rates because they are considered to be more exposed to driving dangers compared to other age groups. Nevertheless, senior drivers can seek discounts through car insurance quotes online UK on the basis of their driving experience and previous driving records.
As far as gender is concerned, women get lower rates because they are statistically found to be exposed to lower risks of severe auto accidents compared to men.
Type of Car:
Model, make and year of the car can also influence auto insurance rates and this can be easily seen while getting car insurance quotes online UK. Insurance rate will be higher if the car is the latest or expensive version in the market. Also, the risk factors that are involved with a car can also affect the rates. If a car is well equipped with safety features, discounts can be expected.
Home or geographic location is another factor that is taken into consideration by the insurance firms while calculating the rates. Auto insurance pricing vary from one city to another. Since the chances of auto accident and theft are higher in cities, city dwellers have to pay higher premium amount on their car insurance. However, if a person living in a rural area is in a region which is exposed to dangerous weather conditions, then he or she may also have to settle for a higher rate.
Of all the factors, this one occupies a prime position when it comes to determining car insurance pricing. A history of car accidents, traffic rule violation, conviction, etc, can lead to higher auto insurance rates.
Use of car:
How much and how frequently a car is used can also affect auto insurance premium. The more a car is driven, the more it is exposed to the dangers of road accidents and damage which have to be compensated by the car insurance firm. This detail needs to be mentioned while seeking car insurance quotes online UK, so as to get an accurate quote.