Your car insurance premium is not an arbitrary figure – the amount you pay to insure your car depends on various factors. So, if you are about to renew your car insurance, what could be the reasons for your car insurance going up? Let’s take a look!
Assessment of your risk factors.
When calculating your new car insurance premium for the coming year, your insurance company will assess your risk factors. You will be asked to inform them if anything has changed in the past year. This would include a change to where you live, where you park your vehicle, changes to your vehicle and how many miles you drive per annum. It is not a good idea not to disclose any changes as failure to mention them could result in your insurance company not paying out on a claim.
Were you involved in a car accident?
If you were involved in a car accident in the past year, your insurance premium will be likely to increase. A sad fact is that even if the accident wasn’t your fault, your premium will still likely go up. If you caused the accident, however, your increase will be even higher.
Drivers licence points.
Have you accumulated points on your drivers licence over the past year? If so, they may remain on your licence for a while and cause your car insurance premium to go up as they indicate that your driving style is risky.
Your job.
Insurance companies view certain jobs as being riskier than others. When you complete your profile with your insurance company, you will be asked to provide details of your occupation. Since some occupations are considered to be riskier than others (even if they don’t actually involve any driving), what you do for a living can affect your insurance premium.
Changes to your vehicle.
Thinking of sprucing up your older car with a new lick of paint? Or perhaps you want to lower its suspension or add a nifty, new spoiler? Sadly, any modifications to your car can mean an increase in insurance premium as your car would then be considered to be a greater target for car thieves. If you have made any modifications to your car recently, be sure to let your insurance company know so that they will pay your claim should your car
get stolen.
Insurance fraud.
Every year, countless individuals make fraudulent claims with their insurance providers. This includes fake claims and providing false information. Although the vast majority of insurers have sophisticated systems to help combat fraud, car insurance fraud is still a massive problem. Sadly, when there is an increase in insurance fraud, this pushes up premiums to compensate and everyone ends up paying more.
Criminal convictions.
If you have been convicted of a crime (regardless of its nature), you will need to inform your insurance company. Even if your conviction has nothing to do with driving, it is important that your insurer is informed so that they can determine the risk to them.