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There are lots of tips to help you get the best deal for your car insurance but first its good to understand how car insurance premiums are calculated.

Companies underwrite policies to evaluate the risk given to every insurance applicant. During this process, a person is grouped into a category, such as a high risk driver, low risk, adolescent or elderly. If this risk associated with the applicant is considered too high, the application may be denied coverage altogether.  After the results are calculated, the insurance insurance company subsequently provides a price, which is based on the perceived risk that the driver represents. The insurance company then provides a price, which is based on the perceived risk that driver poses. This is known as a driver rating.

Insurance companies use this rating as a way quantify what it costs to insure an person if a claim is made and how likely claims would occur.  To keep your insurance costs down you should try to maintain a safe driving record and avoid any traffic accidents and speeding fines if possible and this will help keep your insurance premiums down.

Not all Insurance Companies Rate Drivers the same.  Many providers make use of exactly the same general metrics but their own algorithms ultimately determine their insurance rates and can be fairly different in terms of premium cost offered to the insurance applicant.

One the biggest variables that all insurers use in calculating premiums is the frequency of accidents. When a person files a claim, the insurance kicks in and accidents can cost many thousands of pounds, especially if a death has occurred. The more claims a person files, the riskier he or she’s is in the eyes of the insurance company and more likely to file a future claim.

Another variable which impacts insurance premiums is your driving record.  Insurance companies will look closely at your driving record and how many points you have on your driving licence. To keep your premiums down try to keep a good driving record and keep to speed limits.

The location and type of property you live in plays a part in your premium calculation. If you live in a city you can expect to pay more for your insurance than if you live in a rural area. If you live in a property without a garage or off road parking this will also push up your insurance cost.

If you drive a fast sports car then this will also make a difference and usually pushes up the cost of your premium. Vehicle types play an important part in your premium calculation as the type of care you have, engine size and yearly mileage will play a factor in calculating the premium you will pay for your insurance.  If you want to lower your premium, check out the insurance category for your car. The higher the insurance category, the more you will pay.

There are additional factors that can help reduce your premium. Being married is considered as plus point in the eyes of insurance companies as married couples are considered more responsible than single applicants.

One of the last factors which determines your insurance premium is age.  Drivers under the age of 25 will usually pay more for their insurance as they are considered less experienced than older drivers.

After reading the above, your probably thinking its all depressive reading but there is light at the end of the tunnel. There are a few tips that can help all drivers. Never automatically renew your insurance. Always shop around as insurance premiums change so never take your renewal as the best deal around.  Use our comparison search engine as with the help of our insurance partners we search the market for the most competitive quotes using both mainstream and specialist insurance companies. We have saved hundreds of motorists money on their insurance, so what are you waiting for? Compare your car insurance  with MyMoneyComparison.com https://www.mymoneycomparison.com/car-insurance

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