Car insurance, it’s one of those costs that just keeps coming back around. It seems like as soon as you make a payment, the next one is due. It’s a regular expense that many of us have to deal with and since it’s inescapable (in the UK it’s illegal to drive without it), the best we can hope for is finding a good deal for the lowest price.
So what is the secret to a low premium? Well, it’s not so much a secret as a science. Car insurance providers use ‘big data’, mathematical algorithms and psychographic factors to work out the ‘risk’ level you pose, i.e. how likely you are to make a claim (and cost them money). Often, on the hunt for a good deal, customers use several comparison sites in a rush, filling out multiple customer profiles with differing information. This data is captured by insurance companies as part of their risk assessment and can sometimes makes a customer appear risker than they actually are…
So the secret / or science to getting yourself the lowest car insurance premium – is correctly describing yourself in the profiles you submit to insurers. Focus on getting the information right and not missing out some of the things about yourself that insurers look upon favourably… As with most things in life honesty is the best policy as conflicting information in quote attempts can actually count against you.
Here are some of the factors that insurers to asses risk:
Location: The more populated your area the more you pay
Age: Younger drivers are in more accidents (riskier) – senior citizens also get into scrapes more often and are considered riskier.
Married?:Apparently married people are safer. Men save the most when they marry.
Gender: Sorry lads, you’re more risky.
Job / Driving Habits: A job or lifestyle that requires you to use your car more often increases your risk level and insurance costs.
The Car: Newer models of car with a better safety rating reduce your insurance as the provide better protection for you in the event of a crash (this would mean the insurer would have to pay less in a claim).
Credit History: Insurers also use credit history data to see how well you manage your expenses – to asses how likely you are to pay on time. Bad credit means higher premiums.
If you are new to the UK or already live here and haven’t got yourself a personal current account yet, why not open a Monese account now, from your mobile device. It only takes 2 minutes and will help you manage your money more easily – including making those all important car insurance payments on time.