The price of your car insurance is personal, but it can be difficult to see how the price of your car insurance is calculated. The price is influenced by a large number of personal factors.
Here we give you an overview of 7 of the most normal factors that insurance companies consider when calculating the cost of your car insurance.
1. Which car to insure
The price of your car insurance will be greatly influenced by which car you want to insure. If you have a large car, it may be cheaper to insure, as larger cars are often safer in the event of a traffic accident. However, the opposite applies to the engine size of your car, as cars with a larger engine will have more horsepower and thus also a greater risk of injury or a higher replacement requirement for your company.
There may also be a correlation between the age of the car and the cost of your car insurance. Older cars can be more expensive to insure as they break down more often, and thus more often need to go to a workshop.
2. Your deductible
Your deductible is one of the factors that affect the cost of your car insurance, which you can very easily affect yourself. Your deductible is the amount you must pay if you report an injury to your insurance company. The higher a deductible you choose, the cheaper a car insurance you get as you take on a greater financial risk yourself.
3. Your age
Your age is also one of the factors that greatly influence the cost of your car insurance. Previous studies by Samlino.dk show that especially new drivers are offered relatively expensive insurance, due to their lack of seniority. At some companies, your age also affects whether you can become an elite driver.
4. Your seniority
Your seniority is one of the factors that have the biggest impact on the cost of your car insurance. The reason for this is that your seniority matters a lot to how experienced a motorist you are. It is assumed that the more experience you have, the less risk there is of you doing injuries and therefore you are more attractive as a customer. However, be aware that insurance companies measure your seniority differently.
5. Your address
Your address also affects the cost of your car insurance. In fact, a study by Samlino.dk shows that buying car insurance is more expensive if you have housing in the city than if you have housing in the outer areas.
6. How far you drive a year
How far you drive a year also affects the cost of your car insurance. The more you drive, the greater the risk that you are involved in a traffic accident or the car breaks down. Therefore, you will also find that the vast majority of insurance companies ask you to state how far you drive each year.
7. Injury history
Your injury history is also one of the factors that can mean a lot to the cost of your car insurance. Your injury history may be saying something about how well you drive as a motorist, which is why some companies raise the price if you have previously reported injuries.
However, a survey done by Samlino.dk shows that far from all companies are raising the price if you have just one injury.