The Car Insurance Calculation Explained

When you get an online insurance quote, different companies will apply various factors to the way they finally arrive at a premium for your specific quote.

Generally speaking though, the concept is the same. This involves collecting various bits of information from you and feeding it through a computer system which adds or takes away money depending on the answers you give. The value put on these answers is decided by the individual insurance company.

For example, some companies may believe that having a speeding conviction increases your chance of having a personal injury accident in the future – therefore they may add money to your price if you have such a conviction.

Similarly, some underwriters may decide that because you have a lot of No Claims Bonus Years then you are less likely to claim – therefore they may discount your price.

Your age is one of the more significant factors affecting your quote. Young drivers in particular will be hit hard with higher costs due to their lack of experience and the overall industry statistics which show increased claims for this age demographic.

All in all there are around 30 different factors that may affect your final premium. Now you can see why you get such a difference in the price of your Car Insurance by going to various companies.

Each company will have it’s own view of what they believe should be assigned to each answer you give. The Car Insurance quote you get through our website looks at over 100 of the leading providers in the market, ensuring you get the lowest price for your particular circumstances.

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