If you have just bought a new car, you should not forget that taking out insurance to protect you and the rest is mandatory. For this reason, and given the wide range of offers offered by the market, it is important that you know those factors that can affect the price of your car policy.

When buying the best insurance for your car and if you want to save without losing coverage, you should inform yourself very well about all the factors that can influence when setting the price of your policy.

As you already know, the price of insurance is not fixed and can vary depending on a series of situations: chosen company, type of car insurance, characteristics of the insured, etc.

In this sense, each insurer will have its own criteria to determine the value of your premium, however, do not forget that most of them are based on the same factors.

Among the points that most affect the price of car insurance are:

#1. Vehicle age

If you are one of those who prefer cars fresh from the factory, we tell you that, unfortunately for your pocket, you will have to pay much more for your vehicle policy.

Indeed, if your car is newly registered, the price of the insurance will be much higher than that of older cars.

In this sense, second-hand car policies are cheaper.

#2. Characteristics of the policyholder

The profile of the person who will take out the insurance is decisive for the company when it comes to setting a premium.

Among the characteristics of the driver that most influence the price of insurance are:

Driver’s age

Generally, young people under the age of 25 have to pay more for the policy. This is because those drivers who are in the age range between 18 and 25 are those who have more accidents.

Age of driving license

Without a doubt, this is one of the most important factors. The older the age of your license, the greater the experience you have at the wheel and, therefore, the lower the price you will have to pay for your policy.

Car use

How often you use the vehicle you want to insure is a very important factor. The more you drive your car, the more you will have to pay for your insurance.

#3. Power or horsepower of the vehicle

toy car
© Pixabay

Engine displacement or power is another factor that can alter the price of your policy.

The more horsepower your car has, the greater the power will be and, therefore, the higher the price you will have to pay.

If you do not know the power of your new car you can consult it in its technical sheet.

#4. Driver history

If you have been on the roads for some time, you may be aware that all accidents and claims that you may have had are registered.

Insurers have full access to these databases, so, without a doubt, when requesting an insurance policy, they will verify your driving record.

In this sense, and depending on the accidents you have had, the insurer will classify you as a high or low-risk driver.

If the company considers that you are a high-risk driver, the price of your premium will be higher, while if you are considered low-risk, the value of your insurance will be lower.

#5. Insured postal code

Although it may seem surprising, the value of your insurance can vary depending on the area in which you reside.

Don’t stop comparing

Regardless of the factors that may influence the price of your car insurance, we advise you to compare all the offers that the market offers you and to look at the type of car policy, the excesses, and all those significant aspects for your safety.


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