Car insurance costs vary from company to company basically because the different type of computation factors they use to derive the car insurance cost. Based on the answers that you replied to their questionnaire, they will add or discount the cost before arriving at a final price. Thus, it is important for you to shop around first before you commit yourself to a particular insurer as different companies take a different view of the various high risk factors.
First of all, insurers prefer a person with a clean driving record. This is because car insurance cost would increase if you have been convicted or fined due to rash and negligent driving. Such persons are prone to cause accidents, and there is a great risk to the company, so they will not incur unnecessary costs. The costs of insurance will be higher for a persons having higher rate of accidents. Secondly, if you want to include another one or more drivers to the policy, extra premiums will be added. Thus, the cost will increase according to the number of extra drivers you add to the policy.
Thirdly, while determining the cost the company will take into consideration the age and gender of the driver. If the driver is under the age of 25 the rate will mostly likely be fairly high. This is due to the lack of driving experience. Usually, you will need to have over three years driving to be quoted a lower rate. Also, if you are a single male driver then the cost will be higher than a single female because males are rated as a higher risk than single females. Another factor is your credit report history. Paying your bills on time and maintaining a good credit history will allow you to enjoy lower cost because the insurers too are assured of getting their premiums on time from you.
Additionally, you will be offered more favorable terms if you install security systems in your car. These measures include installing reliable anti-theft alarm and electronic central locking systems. Also, most insurance companies will give you a discount up to 20% if you shop online for you car insurance. One reason you can get that kind of savings is that you are dealing directly with the insurance company and they don't have to pay a monthly commission to an insurance agent. So they pass that savings to you in a form of a discount.
Another great discount you can get even if you are a bad driver is by raising your deductible. If you go from a 100 to a 500 UK pounds deductible that can save you 10% but if you raise your deductible up to 1,000 pounds that can save you up to 25%. In case you are unable to raise your deductible to big amount, you can achieve the same by opening a savings account and start making payments to yourself until you get to the desired deductible.
Some insurers will give you a discount just for transferring your account to them. Other discounts you can expect are multi-car discount if you have more than one vehicle, or if you are a student driver with B average or better, a senior citizen, and so on. But you need to check with the company to know what types of discounts they give.
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