What factors are taken into account when getting car insurance

If you know what signals the insurance companies are using to determine what your quote would be, then you can use those to your advantage.

• 1. Comprehensive, Third Party, Fire and Theft or Third Party only?
     As the name suggest, Third Party Only covers any damage you do to another vehicle and NOT your own, which is why this type of insurance is the cheapest of all. It is most appropriate if you have an old car. However if you want to protect your car against fire and theft as well, you need to take Third Party, Fire and Theft insurance which will cost more than Third Party only. On the other hand, if you want your insurance to cover everything about your car, then you need to go for Comprehensive cover. The latter is the most expensive type of insurance as it covers for all damage to your car and others. So if you bump into the wall while reversing, you will be able to get it repaired through your insurance company with the comprehensive cover.
• 2. Are you a new driver without any no claims bonus?
     If you have just passed your driving test and are looking for cheap car insurance, chances are that you will not get any. But if you take the Pass-Plus Scheme, you can get upto 35% discount on your premiums. Note that there's no test for Pass Plus Scheme! It's only a few more lessons – driving on the motorway, countryside, different weather conditions and that's it. Most new drivers pay around £2000 for their car insurance but if you take the Pass Plus, you make at most a saving of £700 on the premium. It’s worth the hassle, don't you think?
• 3. Do you have another car registered at the same address?
     Some insurance companies like Churchill or DirectLine will give you a really good discount if you insure a second car at the same address with them. There are people who have received the equivalent of 4 years no claims discount for insuring a second vehicle with the same insurance company. Take my word for it, it's a massive saving!
• 4. Which area do you live in?
     Depending on the area you live in (and assuming the car will be kept at the same address), your car insurance can either increase or decrease. Areas with higher crime rates are considered more risky for insurance companies since the percentage of claims is much higher and the chances of robbery are greater. Due to these concerns, you will be quoted you a higher premium. Nevertheless, if you live in a quiet and calm neighbourhood, you can expect lower premiums though.

Other factors which also affect your car insurance quote are your age (25's and over usually get cheaper premiums), driving offences (the less driving violations, the better), years of no claims (the more no claims bonus, the less you're going to pay), number of years you're been driving (this shows how experienced driver you are) and last but not least what you are going to use your car for (eg social, business or work purposes).