5 Factors That Can Affect Your Car Insurance Premium

When you’re shopping for your car insurance, one of the most important factors you’ll consider is the cost. But did you know that your premium can be affected by a variety of factors?

Make, Model & Variant

When it comes to car insurance, the make, model, and variant of your car all play a role in how much you pay each month. For example, if you drive a flashy sports car, you can expect to pay more for car insurance than if you drove a sensible hatchback. And if you have a luxury car, you can expect to pay even more. On the other hand, if you drive an old banger, you can expect to pay less for car insurance than someone who drives a new Ferrari. It’s important to keep this in mind when you’re shopping for car insurance, because the cost of your premium could vary significantly depending on the type of car you drive.

Age of the Car

When you’re looking for car insurance, one of the things that your insurer is going to take into account is the age of your car. The reason for this is pretty straightforward—the older your car is, the more likely it is to have problems, and the more expensive it is to fix. So if you’re looking for a lower premium, try to keep your car as new as possible. This isn’t always possible, of course, but it’s something to keep in mind. And if you do have an older car, be sure to let your insurer know, so they can factor that into their calculations.

No Claim Bonus

Imagine this: you’ve been driving for years without making a claim on your car insurance policy. Suddenly, you’re in an accident and have to make a claim. Believe it or not, your car insurance company is going to take that into account when they set your premium for the next year. In fact, they may even increase your premium, because now you’re considered a higher risk. That’s why it’s so important to maintain a good driving record—the longer you go without making a claim, the more of a “no claim bonus” you’ll receive, and that will translate into lower premiums down the road.

Anti-Theft Device

When it comes to your car insurance premium, one of the things that can have a big impact is whether you have an anti-theft device installed. Most providers offer discounts for those who do, and the savings can be pretty significant. But not all devices are created equal. Some are more effective than others, so it’s important to do your research and choose one that’s going to give you the best bang for your buck.

Insured declared value

When you’re looking for car insurance, one of the things you need to decide is your insured declared value. This is the maximum amount your insurance company will pay out in the event of a claim. It’s important to get this figure right, because if you choose too low, you might not be fully covered in the event of a crash. But if you choose too high, you might end up paying more for your premium than you need to. So how do you work out what’s the right figure for you? Well, it depends on a few factors, like how much your car is worth and how much cover you need. Talking to an insurance advisor can help you get a better idea of what figure is right for you.


Your car insurance premium is determined by a number of factors, including your age, driving history, and the type of car you drive. It’s important to shop around for the best car insurance rates, and to be aware of what factors could increase your premium.


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