There's no avoiding it, we all have to pay for car insurance (fleet insurance if you're a business), but exactly how much should you be paying? That may sound impossible to predict, but there are some constant factors that affect the cost of every premium.
There are companies such as ComparetheMarket.com who are in a position to state what the average premium price is. At the end of 2017 they stated that the average cost of comprehensive cover had actually fallen in comparison with 2016 from £582 down to £574. So what are the risk factors (the probability that you will make a claim) that can make your insurance go up or down?
Car Insurance Risk 1: What Car Do You Own
The make, model, age, security, value and size of the vehicle all have an impact on how much you pay.
Statistics show that sports cars are more likely to be involved in accidents so are higher risk. Repairs could also be a longer and more costly for a rare car as they can be more difficult to source.
Cars are assessed and put in various groups, group 1 being the cheapest to insure and group 50 the most expensive.
Car Insurance Risk 2: The Driver
Your age and driving experience are vitally important. Younger drivers statistically have more accidents so premiums are higher.
You can have a black box (also known as telematics) device fitted which monitors daily driving performance and can mean if you drive safely your premiums could fall. With more experience comes lower risks and premium costs.
Age eventually works against you over the age of 70, as reaction times fall, premiums may start to rise again.
Although due to EU law gender is no longer a factor, your job may be. Some vocations are regarded as higher risk and come with penalties such as journalists, actors and funfair employees.
It's also important to specify how you use your vehicle as if it's used for more than commuting, including business use, this is an extra which needs to be paid for.
Car Insurance Risk 3: Driving History
Driving history is another main factor and drivers who build up a no claims bonus (NCB), which is based on the accumulative years they have not made a claim, will be offered a discount. If a driver is not at fault their no claims bonus is usually protected (thought this is not always the case!).