Five Reasons why your Car Insurance Premium may be High

Across the United Kingdom, it is common to hear drivers talk about the cost of their car insurance premiums. Drivers pay different premiums due to variations in factors like their age, their gender, the value of their car and other related factors. Which factors really contribute to achieving the holy grail of ‘less expensive’ car insurance?

There are five key reasons why your premium may be high. By exploring these reasons in more detail, you may discover ways that you can reduce your insurance cost to save money.

1. You Haven’t Shopped for Rates Recently

Many drivers in the United Kingdom put their car insurance policy on auto-pilot. They may have shopped for new insurance years ago, and since that time, they have been enjoying an automatic renewal feature on their policy. The fact is, however, that shopping for new rates periodically can help you to identify savings on your premium.

2. You Have a Poor Driving History

One of the most significant factors that affects your premium is your driving history. Even accidents and citations from several years ago may be affecting your premium. Because incidents will remain on your driving record for years, it can take time to improve your record. However, there is no better time than today to start driving more safely.

3. You Are Driving a Car That Is Expensive to Insure

Both the average repair cost and replacement value of your car will affect your insurance premium. By choosing to drive a more expensive car, you are essentially choosing to pay a higher premium. The next time you trade in your vehicle, consider how driving a more affordable vehicle will reduce the cost of your car insurance.

4. Your Excess is Too Low

You may be aware that you will need to pay your excess each time you file a claim. Many drivers are concerned about having to pay this out-of-pocket expense after an accident, so they will opt for a lower excess amount. However, a lower excess amount creates a higher regular premium payment. Raising your excess may help you to save money on your premium regularly.

5. You Are Paying for More Cover Than You Need

Both the type of cover you have and your cover limits will affect your insurance cost. If you are paying for more cover than you need, you may be paying a higher premium than necessary.

Each of these factors can affect your premium cost. If you believe that your premium is too high, take a closer look at your Car insurance policy and make revisions as necessary for savings.

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