Any insurer will take all the facts into consideration when providing you with an auto insurance quote. This includes age, type of vehicle, model of vehicle, where you live and if you have a no claims bonus. How long you have held your driving license also plays a significant role.
The aim of using all this information is to determine how much of a risk you are to the insurer. While they provide you with a level of cover, they don't really want you to claim, which is why so many people enjoy discounted premiums due to their no claims bonus.
Those falling into the twenty to twenty four year old age group will pay considerably more for their auto insurance than those that fall in the twenty five year old and higher bracket. The reason for this is that it has been proven that younger drivers are inexperienced and take risks on the road, resulting in a higher number of road traffic accidents.
All insurers take your no claims bonus into consideration. From the day you take out your first insurance policy you start gaining a bonus, as long as you don't claim that bonus continues to grow. Anyone with four years or more in no claims can benefit with discounted premium rates.
As a younger driver, chances are that you won't have enough of a no claims bonus to benefit you. If you have claimed, this bonus falls away and you need to start again. For many younger drivers, they will claim within their first year, which makes them such a high risk to the insurer.
Not only that, but because you are a relatively new driver with limited experience on the road, you are automatically considered a high risk. High risk people are those that are seen by the insurer are more likely to claim during their policy term. As you get older and wiser, your risk is reduced, especially when combined with a no claims bonus.
There have been changes to how insurers categorize genders when it comes to providing auto insurance. Women have always been seen as less of a risk than men, so a man under twenty five would pay considerably more on their auto insurance than a woman of the same age, yet they would both pay more than someone in their fifties, for example.
The new ruling has put men and women closer together when it comes to their premium, even though men are seen as a higher risk when out on the road.
Taking all of this along with your age into consideration, anyone younger than twenty five is expected to pay around seven per cent more in premiums than someone that is twenty five or above.
The insurer works in categories, twenty to twenty four, and then twenty five to twenty nine and so on. As you age, your premium reduces. This is then combined with your no claims to give you an accurate premium amount.
Bear in mind the vehicle you choose will also play an important role in your overall premium amount. If you choose a smaller vehicle that isn't considered a sports car and doesn't have major work done to it, then you will pay less than someone who pays to have alloys fitted or a sport exhaust, for example.
To keep your costs as low as possible, ensure you park your vehicle off the street, you don't have any work done to it and you keep it as genuine as possible. Be careful on the road to reduce the risk of accident, thereby building your no claims bonus for the next year.