There are several factors that affect the rate of your car insurance premiums. Some of these factors are in your control, and others are not…

The make and model of your car : Changing the make and / or model of your car can drastically reduce your insurance premiums. Though you might love your current car, it really could be costing you thousands of extra dollars each and every year. What type of car do you need to change to? Well, for example, one that is less likely to be stolen. A car with inbuilt safety features will save you money in the long run too, as you will be less likely to be in an accident.

Your driving record : Your driving record plays a major role when it comes to determining your car insurance rate, with a good driving record meaning big savings. The reason being that there is less chance of you being involved in an accident, and therefore less chance of the insurance company having to pay out. A poor driving record does not mean that you will always end up paying a lot for insurance though, so long as you seem to be making amends for past mistakes. The longer it was since your last offense, the less bearing it will have. Consider also enrolling yourself on an advanced driving course.

Location, location, location : Some car insurance companies deny it, but it is widely believed that where you live affects how much your premiums are. Whether this works out in your favor or not is a bit of a lottery. The zip code of the area where you live, and the immediate areas around it, is evaluated in terms of the number of accidents that take place there each year and the number of vehicles that were vandalized or stolen. People living in areas classified as ‘high risk’ by insurance companies may well have to pay twice as much as someone living across the other side of the city.

Your occupation : Believe it or not, your occupation can affect the amount you pay for your car insurance. Anyone who has a job where they are often on the road will end up paying more. Those who are retired, work from home, etc. drive less, and so are entitled to discounts. Changing your job in order to get cheaper car insurance is not, obviously, advisable, but that does not mean there is nothing that you can. Using public transport more often is one option and asking your company to provide you with a company car is another.

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