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5 Factors That Have the Biggest Impact on Your Comprehensive Car Insurance Premium

Your insurance premium isn’t determined at random. A large part of it depends on your own choices – often the ones you may not pay much attention to at first.

At the same time, it’s important to understand that the vehicle itself also affects the cost of comprehensive car insurance. The make, age, value and intended use of the car all provide the insurer with important information about the level of risk.

The good news is that, in addition to the car itself, there are several factors you can influence through your own choices and use to manage your insurance costs.

Let’s take a look at the five most important factors affecting your premium.

1. Vehicle characteristics and usage

One of the biggest factors affecting your premium is the vehicle itself. The car’s make, model, age, market value and intended use (e.g. everyday driving or business use) directly affect the level of risk and, consequently, the insurance premium.

Newer and more expensive cars generally come with higher premiums, while simpler, lower-risk vehicles are often less expensive to insure.

2. Choice of additional cover

Additional cover gives you greater peace of mind, but you may not need every option available. For example, replacement car cover may not be necessary if you already have access to another vehicle.

The more additional cover you choose, the higher your insurance premium will generally be. Making informed choices helps keep your premium under control without giving up the protection that matters to you.

3. Deductible amount

The deductible has a direct impact on your insurance premium. The lower the deductible, the higher the insurance premium will usually be.

For example, comprehensive car insurance with a €200 deductible may be noticeably more expensive than a policy with a €500 deductible, with the difference potentially amounting to several dozen euros per year. Choosing a slightly higher deductible can often help reduce your monthly premium.

4. Reviewing your policy regularly

If you don’t review your policy regularly, you may end up paying for cover that no longer reflects your actual needs.

Life changes – and your insurance should change with it. Reviewing your policy helps you find the right balance between cost and protection and avoid unnecessary expenses.

5. Claims history

Your claims history is one of the key factors affecting your insurance premium. The more claims you have made, the higher your assessed risk may be – and this can also result in a higher insurance premium.

Each claim may affect your premium in future insurance periods. A claim-free history, on the other hand, can help keep your premium lower and provide more stable insurance costs over the long term.

Good insurance doesn’t have to be expensive.

Your insurance premium depends both on your vehicle and on the choices you make.

Sometimes, the best approach is simply to talk to an insurance adviser. Together, you can review your policy and make informed decisions that suit your lifestyle, needs and budget.

Calculate your vehicle insurance premium with the Elama comprehensive car insurance calculator.