Unknown Factors Affecting Your Car Insurance Premium

By Author: Danny Aaron
Total Articles: 67
Comment this article

Car insurance is somewhat of a taboo subject. Everyone has their own claim horror story, and there are always stories circulating about the exorbitant cost of premiums. The truth of the matter is, armed with the right information, you do not be afraid of car insurance. Doing the correct research is probably one of the best things you can do, as you will be on top of the game and able to make wise choices.

Most people think that getting car insurance is just a standard affair involving informing the insurance company of your age and what vehicle you drive, and then signing on the dotted line. The truth is that there are many things affecting that premium, and some which are actually under your control!

A lot of people are not aware of the fact that the actual car they drive can affect the cost of their premium. Some cars are higher theft risks, and others are more notorious for being involved in collisions. Cars which have passed certified safety tests and are approved by the insurance companies as being safer vehicles to drive will normally be awarded a lower premium. This may or may not be something which you ...
... can control, as you will usually have already chosen your vehicle and bought it before you seek out your insurance.

Another disconcerting factor which could affect your premium is the location that you live and work in. Some car insurance companies will take this into consideration, especially if your area of residence is seen as being more likely to be targeted by car theft. People who live near sports stadiums, shopping centers or industrial areas could find that they will pay a higher premium. In some cases auto insurance companies have car theft hot spots, which are areas that have had a lot of theft claims in the past. This is also another factor which you cannot really control, as it is highly unlikely that one would move home to obtain a lower premium!

Another car insurance factor pertaining to your location is the likelihood of natural disasters occurring in that area. If your area is infamous for having frequent natural disasters such as floods, hailstorms, tornados or earthquakes, your car insurance premium could be higher. This is because the insurance company knows that there will be a higher chance of you having to claim on damages to your vehicle caused by natural disasters.

As detailed above, it is clear that there are certain factors which you cannot control. Although this can be upsetting, feel safe in the knowledge that there are some which you can work on. This is mainly the security systems you have in place for your car. A car with a good alarm system and tracker will be treated more kindly by an insurance company, as well as driving as cautiously as possible to prevent a bad driving record from piling up. You can also have your car revalued yearly. If you are lucky, as the value of your depreciates, so shall your premium lower.
Danny Aaron manages Hollard Pay As You Drive's site http://www.payasyoudrive.co.za where you can obtain car insurance quotes and other information on auto insurance.