Top

Surprising Factors That Skyrocket Your Insurance Payments

Car insurance is one of those banes of life – it can be confusing, costs you hard-earned money, but you can’t be without it. Not only that, of course, but no one really knows what goes on behind the decision making behind the pricing of your insurance. Well, we’ve done some sniffing around and found some surprising factors that can have a huge impact on the costs of your car policy. Read on to learn more!

Dishonesty

OK, so it shouldn’t come as too much of a surprise that lying on your application form or when you have had an accident can cost you in the long-term. Just like anyone else, insurance companies don’t like dishonesty, and the chances are they will wallop you in the pocket if you don’t disclose the full truth. Be honest, and you reduce the risk of eye watering extra charges on your account, and a black mark against your name.

History

History is also important to insurers. Simply put, people who have had insurance for extended periods of time will get a better deal than those that don’t. Even when you are looking at the , you will save a fortune by having an extended history of coverage. Other historical factors come into play, too, so the higher the coverage you have enjoyed in the past, the more responsible an insurer will think you are.

Car usage

Your car usage is also a huge factor in determining your rate. Is it for work? Do you run your own business? Do you only use your car to go to the shops? Your answer could make a difference in pricing of anything up to 20 percent. Farm vehicles tend to cost less, while tend to attract the highest fees. But – again – don’t lie or you could end up facing excessive fees and a cancelled policy.

Relationship status

Single people are seen as more of a risk than married individuals and couples. Interestingly, if you get divorced, your rates go back to those that are similar in cost to when you were single. It’s also worth bearing in mind that if your partner dies, your rates actually go up. It doesn’t seem fair, of course, but it’s all down to the risks involved.

Education

While an education can certainly cost you in tuition fees, it will . According to insurance providers, people with an education are less likely to be a risk on the road than those who leave school at 16. And it can be an enormous amount of money, too. Someone with a Ph.D. could save a triple-figure sum over the course of a year.

Location

Finally, where you live can also have an enormous impact on your insurance rates. Live in a big city? You are more likely to end up in a wreck than you are in the country. Vandalism, theft, small parking spaces – all of these issues will be highlighted by insurers, and it can quickly add up.

News content images are sourced via www.newspress.co.uk for editorial use.

Leave a comment