Baby child seat car. A beige teddy bear is fastened with seat belts in a car seat. Travel by car.

Car insurance is a legal requirement, meaning that it is illegal to drive a car without a policy in place. Learning more about the intricacies of how car insurance works can help to ensure that you are getting the best deal possible. This is why we have put together the following list of FAQs, so let’s take a look.

How is the Policy Priced?

The cost of your car insurance premium is typically priced using a few different metrics. One of the biggest influences on the price of your policy is the make and model of the vehicle; newer, more high-end models are more expensive to insure. You can find providers who specialise in providing coverage based on the model of the car. For example, you could get insurance for a Peugeot 107 from Quotezone.co.uk.

Other factors that affect the cost of your insurance tend to depend on you. Your age affects the price, with younger drivers being more expensive. People who live in high-crime areas can expect to pay more. Those with driving convictions or points on their licence can also expect to encounter higher premiums. A no-claims bonus can help to bring the cost down. Finally, your mileage will also affect your premium.

How Can I Save Money on My Car Insurance?

There are a few ways that you can help to make your car insurance cheaper. Firstly, pay your car insurance annually if possible. Park your car off the road on a driveway or garage where possible. If eligible, you should also opt for a telematics policy. Installing a dashcam can also save money. Estimating your mileage correctly can also help to save you money. Finally, remember to protect your no claims bonus.

Is There a Link Between Your Credit Score and Your Car Insurance Premium?

Your credit score is beginning to become more and more relevant; it is being factored into a lot of purchases. In recent years, a lot of car insurance providers have begun to see a correlation between a low credit score and the odds of a person making a claim on their car insurance. This could explain why if you have a low credit score, you might struggle to find affordable premiums. Not all providers take your credit score into account.

Do Engine Sizes or Transmissions Affect the Price?

As mentioned above, the make and model are taken into account when calculating premiums, so in that respect, the engine size has already been considered. Different engine sizes do not require different forms of insurance. The same is true of the transmission. Environmentally friendly cars are not necessarily any cheaper to insure, although you could save money when it comes time to tax your vehicle.

The Takeaway

There are several elements that are taken into account when it comes to the insurance company working out your premium, including a number of personal and professional factors. Luckily, there are several ways that you can make your insurance cheaper, like installing a dashcam or a black box. Your credit score shouldn’t necessarily affect your premiums, nor will your engine or transmission.

About Author

I have always had an interest in travel and now I have My two boys I want them to see more than just the UK. I hope to give advice and tips to other parents who are anxious about travelling with their children.

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