10 Things You Didn't Know Affect Your Premium

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Earlier this year, a vicar in Wales was told that the stickers she’d stuck on her car could invalidate her insurance policy. The insurance company’s argument was that the stickers were classed as modifications which Reverend Wena Parry hadn’t declared, thus jeopardising the validity of her policy. The insurer did, eventually, pay out, but what other more unusual factors affect our car insurance premiums? Here are eight to be aware of…

Credit score

One of the factors insurers consider when deciding whether to offer you insurance or not is your credit rating. They use this information to gauge your future ability to pay for your policy. If your financial history shows a low score then insurers will be less inclined to offer you a monthly payment plan.

New job

If you change jobs during the course of your insurance policy it is important to notify your insurer. Different careers come with different risks and each occupation is rated accordingly. If you come to make a claim and you are no longer doing the job your insurer has listed this could result in your policy being nullified.

Speed awareness course

Many of us opt to complete a speed awareness course rather than getting points on our licence, which is fair enough. However, some insurers want to know about this and you may find it has implications on your premium.

Mileage

It’s sometimes tricky to gauge your average annual mileage when applying for a new insurance policy. Be aware that insurers take all information seriously and the more miles you travel the higher your premium will be. Be careful not to over-estimate your mileage to prevent your premium creeping up unnecessarily.

Usage

If you only use your car for social purposes be sure to make that clear on your application. Cars used for business can rack up the mileage, whereas purely social-use cars are more likely to travel shorter distances. Either way, your premium will be affected.

Accidents

If an accident takes place for which neither party accepts responsibility the claim remains in dispute. Regardless of whether the accident was your fault or not, if your insurance comes up for renewal during this dispute period you may pay a higher premium. Therefore, once a claim is resolved it is essential you notify your insurer so they can calculate whether you are due a refund.

Medical conditions

If you are diagnosed with a medical condition that could affect your driving, it could affect your premium as well. Always let your insurer know of any such conditions to ensure your policy is not declared invalid if you come to make a claim.

Forgetting to shop around

Life is hectic, and when our car insurance comes up for renewal, many of us end up staying with the same provider simply because we run out of time to shop around. While understandable, this could be costing us serious amounts of money. 

Virtually every insurance expert out there cites shopping online for new cover as the most effective way to reduce your premium. Comparing policies also makes sure you are getting the right cover to suit you at every stage of life.

Computerquote Insurance searches for premiums from a wide range of insurers to get you the best deal, and can save you up to 20% using our quick and simple online motor quote.

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