How Does Your Driving Record Affect Your Car Insurance Premiums?

Here are some of the most important elements that new car insurance providers consider when determining insurance rates:

 

Demographic-Related Factors

• Age and gender

Young drivers under the age of 25 typically have to pay more than drivers over the age of 25. Furthermore, young men between the ages of 16 and 25 often pay greater insurance premiums than young women. This is because male teenagers are statistically more likely than female teenagers to be involved in accidents.

 

According to studies, elderly women are more likely to be involved in small accidents than older men. So, providing they have a clean driving record, older males typically receive better car insurance rates. Nonetheless, car insurance price variations are typically not very significant.

 

• Profession

Companies that provide car insurance may make connections between a person’s line of work and the associated risks of an accident, and they modify the rate appropriately. Because they are seen to be drivers who are more cautious on the road, paramedics, insurance underwriters, and police officers are some professionals that frequently earn a favourable rate when they need car insurance.

 

Vehicle safety-related factors and features

• Safety features

Airbags, traction control, carmate seat belts, car alarms, anti-lock brakes, tracking devices, and other safety and anti-theft technologies that make your car somewhat safer, less likely to be in an accident, and harder to steal are used to determine a car’s safety grade.

You pay less for insurance since a car with a high safety rating has a decreased risk of theft, injury, or accident.

 

• Age and Vehicle Size

Larger vehicles are thought to be generally safer than smaller ones. In contrast to smaller cars with comparable safety ratings, many large cars with good safety ratings command reduced premiums.

 

The former is more likely to be totalled in an accident, even though repair prices for older and modern vehicles are comparable. Understandably, necessary repairs on an older car are frequently more expensive than on a new one. As a result, older cars have higher insurance costs than modern ones.

 

• Potential for Theft

The model and manufacture of a car are rated by insurance companies based on actual claims experience. Swanky cars are more likely to be stolen and cost more to fix. Such vehicles draw higher insurance costs, as can be expected. The cost does, however, go down if the car has anti-theft features.

 

• Driving-Related Variables Driving Records

Your insurance rate will automatically increase if you have a history of accidents (often at-fault incidents) or other blemishes on your driving record. Also, if you have previously filed insurance claims and now need car insurance, the insurance company will charge you more since they think you are more likely to do so than a similar driver with a spotless driving record. Some insurance providers outright reject customers with a history of reckless driving.

 

• Driving Practice

Your odds of being in an accident increase as you spend more time driving on roadways. If you reside nearby your place of employment, your insurance premium will probably be lower than it would be for someone who commutes frequently by car or lives far from their place of employment. ##

 

Some businesses adjust car insurance costs based on factors like the distance driven, the car’s intended use, how frequently it is used, etc. The amount, kind, and timing of your driving, as well as whether or not you use your car more for work or play, can all have an impact on your insurance costs.

 

A car insurance calculator is a tool you may use online to determine the amount of coverage required based on your needs.

 

 

## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply

 

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

 

Subscribe to Bajaj Allianz General Insurance YouTube Channel here!