There are over a million car thefts every year in the United Kingdom so it is worth investing some time into keeping your vehicle as safe as possible. There are many different ways you can minimise the probability of your vehicle being stolen or damaged, which in turn helps to lower the costs of your insurance policy.
Ever wondered how the cost of your car insurance is calculated? There are many contributing factors, from age and gender to annual mileage and your existing no claims bonus. Find out all about how the cost of car insurance is calculated to help keep your own premium down.
If you need some clarity on how the cost of your car insurance is calculated then keep reading to find out more about some of the main factors contributing to your premium:
Age
Age is a significant contributing factor to the cost of car insurance. New drivers and those aged under 25 tend to pay the most as the younger and /or less experienced a driver is, the more of a risk they are perceived to be. Once you have been on the road for a while you can expect your driving history to be taken into consideration.
Driving History
If you do have a driving history, this will play a part in the cost of your car insurance. The longer your no claims bonus is, the cheaper car insurance tends to be. Existing claims can cost extra as it makes you a higher risk to your insurance company. Having penalty points on your license will also increase your premium.
Car Insurance Group
Cars in the United Kingdom are placed into one of 20 groups when they are manufactured. These insurance groups are assigned by the Group Rating Panel, which consists of members from the Association of British Insurers (ABI) as well as Lloyds Market Association (LMA). Cars in the highest groups are most likely to cost more to insure, with one being the lowest and 20 being the highest. If you are thinking of buying a new car then remember to look into the insurance group and think about how this will affect the overall cost of your insurance.
Annual Mileage
The more miles you cover each year, the more it costs to insure your car. This is simply because the more you are on the road, the higher the probability of being involved in an accident or of your car sustaining damage. When organising, don’t give a rough estimate of annual mileage, try to work out the most accurate figure possible. Distance from your place of work can also have an effect on the cost of your car insurance policy. Commuting every day during rush hour is perceived as a risk and the further away your office, the more risky the prices are calculated accordingly.
Where is your car parked?
Where your car is parked overnight has a bearing on how much your insurance policy will cost. Keeping your car in a locked garage overnight is generally perceived to be safer than parking on a driveway or street. The Association of Chief Police Officers Vehicle Crime Intelligence Service (AVCIS) report that 40% of UK drivers have been a victim of car crime. Keeping your car safe and secure not only prevents loss and damage but can help to keep achieve cheap car insurance by reducing the likelihood of having to make a claim on your policy.
The first step to keeping your car safe requires little effort and just a spot of common sense. Where possible, park your car in a safe and secure area, preferable with CCTV. At night-time, try to park in a well-lit space. Always make sure you lock your car, close the windows and sunroof every time you park. Satellite navigation systems and car stereos are among some the most common items to be stolen so you should always remove each if possible when out and about and take these items with you as opposed to hiding them under seats or in the glove compartment. Remember to take any valuables such as wallets or mobile phones when you leave your car. Where possible, park your car with the back end reversed against a wall as this makes it more difficult for thieves to break into your boot and steal any items you might have there.
Install an Alarm
Installing an alarm system not only deters thieves but attracts attention if someone does try to break into your car. Make good use of the stickers that come with alarm systems and stick them on windows where they can be easily viewed and therefore prevent theft. Never assume that because your car has a remote control means it also has an alarm fitted as this is not always the case. Some insurance companies will only offer reduced premiums if specific types of alarm are used so it may be worthwhile investigating this before having one fitted. Thatcham alarm systems are often preferred by insurers.
Immobiliser
Your car may have a factory added immobiliser or you can choose to add one yourself. An immobiliser is simply an electronic device fitted to the car which prevents the engine from running unless a specific device, like a key or fob, is within range of the immobiliser sensor. Immobilisers usually work by restricting fuel to the pump or locking the ignition circuit.
Steering/Brake Locks
Using a steering wheel and/or brake pedal lock can prevent thieves from making a getaway. These items can be easily picked up from high street stores and are easy to use. They are also visible when in use so may even prevent thieves from breaking into your vehicle in the first instance. Putting the above preventative measures in place will stand you in good stead when getting car insurance and could save you money in the long term.
Jennifer Adams is a part of a blogging team who write for Cashzilla, a site that reports on finance and topics like insurance for a number of clients about topics. For more and similar posts, check out Cashzilla.co.uk or head to our Twitter account, @cashzilla.