The insurer will always like to know about your past
Claims History. Generally they ask for the details of any claim in the last 3 years whereas some may ask to provide you details for the last 5 years.
The premium will increase with the number of fault claims made in the past. It may sound a bit harsh but insurers generally presume that people with higher fault claims in the past are more liable to make driving errors in the future. And therefore are charged higher premium.
Drivers
Drivers also play an important role in the cost taken by the
Car Insurance company. If you are adding a driver who is under 25 years of age and has been convicted and is driving a group 15 rating vehicle and all these points will lead to a bigger amount taken up by the insurance company. On the contrary if you added a driver who can be defined as safe risk then only an administration fee will be included. So, insurance company generally asks for the conviction details for the previous 3 to 5 years of the drivers before providing the individual with insurance.
Driving Convictions
Generally convictions are of many types which are taken into account by the insurance companies. These are driving without having a license, reckless driving, driving under influence and many more. The fact is that more serious the nature of conviction more will be the premium charged by the insurance companies. Sometimes insurance companies may offer lesser cover or add some alterations to the policy if the conviction is more serious in nature.
Medical Conditions
Medical conditions also play a vital role in
Car Insurance policy. Obviously an individual having any type of problem interfering with the driving will influence the premium. In fact any such disability should be brought in to the notice of the Drivers and Vehicles Licensing Agency (DVLA). For getting more information on medical problems related to driving you can log on to DVLA website to clarify your queries and questions.
Car Mileage
The insurance company also takes into account the mileage you cover. The truth is that more you are on road, more will be the chances of having an accident, and hence more will be the premium taken by the insurance company.
Occupation
Apart from the mileage, insurance company also withdraws greater premiums from those people who are into special occupations. For example occupations in which an individual carries large equipment worth £2000 will pose bigger possibility of his vehicle theft or being damaged and not recovered. Some of these occupations include entertainers, sportspersons, chefs and those related with licensed property.
Security
One of the ways which has reduced the
insurance premiums and has reduced insurer’s costs is the installation of quality security systems in your cars to protect them from thieves. These security devices may include steering locks, alarms and immobilizers. Earlier in 1900s there was a hell lot of news regarding stealing of vehicles and damage caused to the vehicles. Keeping this consideration in mind a scheme was introduced in 1996 which got extended in 1997 to include light commercial vehicles and heavy commercial vehicles and to motorcycles in 1999. Insurance company believes that if your car is fitted with a quality security system then it’s less likely to get stolen thus demands less premium for the insurance policy.
Car Value
Insurance premium also depends upon the value of the vehicle as a car worth £7,000 or £70,000, involved in a serious accident will surely fetch higher premium to cover everything in the policy. Also the insurance company believes that a large sum of money will be required to repair that vehicle in case it gets damaged. In other words your insurance company will pay you the book price for your vehicle in the event of a
claim or sometimes will not pay more than the figure advised without giving respect to the book price.
Car Age
The costs of your premium also depend on the vehicle age. If you car is a new one then its value is higher and naturally the premium amount will be higher. On the other hand, if you wish to insure an old vehicle then the premium amount will be lower. However, it doesn’t apply for classic and vintage vehicles, whose value increases with time.
Car Use
The ways you use your vehicle also have a dominating effect on the costs of the premiums. If you use your car for private use such as for driving your family or to other such personal uses then you will have lesser mileage and hence lesser probability of accidents and therefore claims. However, if you use your vehicle for business usage then you car will run extra miles which will increase its probability of getting damaged or meeting an accident. This will increase the risk of the insurer who will pass it on to you in the form of extra premium.
Your policy document and certificate of
Car Insurance will substantiate accurately your coverage:
- Social, domestic & Pleasure – S, D&P allows cover for driving your family and friends for shopping.
- Business use - This allows cover for driving your car in connection with your business or profession.
- Commuting - This allows cover for driving to workplace from home.
- Commercial travelling - This allows cover for the car to be used for commercial activity.
Your Address
The place where you live is also an important factor in calculations of premiums to an insurance company. Driving in urban areas is little difficult as compared to countryside as there are increased traffic and congestion leading to higher probability of accidents. Also people living in areas with higher crime rate are also charged more by the insurer. Also if you leave your car in a locked garage then you will be charged less premium in comparison to somebody who leaves it outside in the night.
It happens that many people registered their car at one address but the car is kept or driven at different location due to professional and personal reasons. For such people it is advisable that they convey this to their insurer otherwise your
claim may be rejected for suppressing material facts.
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