Written by Graham Cutbill-White
To work out how much you have to pay for insurance, insurers must calculate how much risk is involved in your policy. This is determined by a number of risk factors.
There are many risk factors that insurers take into consideration when calculating the price you pay. From your age to the car you want to insure, these risk factors help insurance companies paint a picture of the possible risk that you face.
Your address is a risk factor that many drivers don’t consider when purchasing insurance. Insurers take into consideration your address for a number of reasons including how densely populated it is and how safe the area is.
Living in a busy city centre like London or Birmingham can cause a car insurance price increase and your premiums will be more expensive than in other areas of the country. This is because large cities attract more cars and more traffic which increases your chances of having an accident.
It’s not just big cities that are car insurance risk areas, if you live in an area with a high crime rate, insurers are likely to increase the cost on the assumption that your car is more likely to be vandalised, damaged or stolen.
When you consider that you spend most of your time driving in your local area or parked at your address, you can understand why your location has such an impact on how much you pay for insurance.
When getting an insurance quote, no matter what you want to insure, it’s important to be as open and honest as possible. Not only could a mistake on your policy see the cost shoot up but something as simple as knowingly entering the wrong address could see your policy voided. This means that if you’re in an accident, you would not be covered and would have to pay for all costs involved.
Not only would the insurer refuse to pay out if you make a claim but your policy will be marked as cancelled, which means you would be classed as driving without insurance and could face an unlimited fine.
You will also have to declare the fact you’ve had a policy cancelled when getting insurance in the future. This can bump up your future premiums and could even stop you from getting cover at all.
A little white lie may seem harmless at the time but it could not only end up costing you a fortune but it causes insurance premiums to go up for all drivers to cover the cost of paying for fraudulent policies.
There are a number of ways you can reduce the cost of your insurance premiums without having to resort to fraud.
If you do live in a city centre or area of with a high crime rate then making sure your vehicle is parked off the road, preferably in a locked garage can reduce the price you pay for insurance.
You should also make sure you have a working car alarm and immobiliser installed. By reducing the risk to your vehicle, you should see that premiums you’re quoted start to fall.
There are a number of general things you can do to lower the cost of your insurance, these include:
It’s also important to only pay for the insurance you actually need. Annual insurance isn’t always the best option for drivers. If you’re borrowing a car for the day or few for a few weeks then paying for a year’s worth of cover is unnecessary.
Temporary insurance is a great alternative for many drivers and can save you time as well as money. It’s a flexible policy available from just 1 hour up to 28 days. If you don’t want to pay for cover you don’t need then short term cover is the best option for you.
Getting a quote is simple and straightforward, takes a couple of minutes and then you’re covered instantly.