Things Which Affect Your Car Insurance - Finance - PersonalFinance

All drivers know that many things affect the cost of your insurance premium. The area you live, your age, and even where you keep your car can cause your policy to be more expensive. Often, even if you have no claims, your insurance could still go up the next time you renew your policy for reasons that you might not be aware of...

* Even though it seems pretty obvious, if you commit a motoring offence, such as speeding or running a red light, your car insurance renewal will increase; the more points on your license, the higher your car insurance. Many do not realise how much the premium will be increased by. On average, a policy with someone who has had points added to their license will be increased by 10% (or more if offences are repeated). It is easier said than done, but by avoiding driving convictions as best as you can, will keep your insurance low.

* It has been illegal to use a mobile phone while driving since 2003, and if you are caught using a mobile while driving you are likely to have 3 points added to your license. Phone insurers see people who use their mobile phones while driving as a bigger risk, and assume that they are more likely to claim on their insurance. Therefore, if it is known that you have been convicted of this, your car insurance premium could rise by more than a third when you come to renew. Make sure you invest in a hands free kit for your car, as this would be a lot cheaper than it would be if your premium was increased as a result of using your mobile while driving.

* Your career may well have as much to do with your insurance as the area you live in or where you keep your car at night. If you have a job where you use your car a lot, and are likely to carry expensive equipment with you, insurance providers may see this as a higher risk, as your car is more likely to be broken into or stolen if expensive equipment is on view. An example would be a photographer, who uses his car as transport in his job, and would leave his equipment in his car. His insurance would be higher than say, an office worker, who drove their car to work and parked it in a secure car park. Even though the nature of your career cannot be helped, make sure you explain the nature of your job to your insurer, which could significantly lower your premium.

When renewing your policy, make sure you shop around and get a number of car insurance quotes. Compare car insurance online to make sure you find the cheapest deal. Don't go with the first provider that you come across, by searching the market you are more likely to find cheap car insurance.

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