What determines the price of car insurance?

Not everyone pays the same amount for auto insurance. Insurance companies use different elements to calculate the price of insurance. But what are the elements used to determine the price of insurance?

Here is the list of elements very frequently used by insurance companies to define the insurance price:

What determines the price of car insurance?

Table of contents:

1. The influence of your profile on the cost of your car insurance

The driver of the vehicle is the first element for the calculation of the auto insurance rate.

First of all age: young drivers under 26 cause 2-3 times more accidents than people over 26. Young people will therefore have to face higher insurance prices than older people.

Some insurers limit these high insurance premiums if you take defensive driving lessons.

Older people also cause more accidents. The reaction time is sometimes longer, which leads to a greater risk of an accident. The price of auto insurance will also be higher for the elderly.

2. The nature of the vehicle covered by the car insurance

Although motorists are not always aware of it, the nature of the vehicle is central to the pricing of auto insurance. Moreover, there are two elements in particular that may have an impact on the amount of contributions:

Vehicle characteristics: insurers take particular account of the make and model of the car as well as its power to define the amount of contributions. The age of the vehicle and its purchase value are also important, as they have an impact on the amount of any compensation in the event of an accident. The nature of the engine (diesel, gasoline, hybrid, etc.) also plays a role since, for example, repairing an electric motor will generally be more expensive. The presence of driving assistance devices (parking assistance, cruise control / speed limiter, ABS, etc.) may also be taken into account, insofar as these reduce the accident rate.

The use of the vehicle: the use of the car is also important to assess the level of risk and, thus, to calculate the price of car insurance. The parking place (parking lot, box, street, etc.), the annual mileage, the nature of the trips (home-work, business trips, etc.), the frequency of use of the vehicle and the nature of the drivers (main, secondary or occasional) are criteria generally taken into account by the insurer.

3. The influence of your history on the cost of your car insurance

Resting on the elbows, hands shoulder-width apart, and toes, feet apart or together, keep your body in line with your legs. The buttocks should not protrude or sag. This is where the difficulty lies. At the beginning, we hold 30 seconds then we lengthen the time.

4. The influence of the criteria specific to each insurer on the cost of your car insurance

Fundamental, this way of breathing mobilizes the deep muscles and also allows you to relax. Double effect therefore. Lying on your back, legs bent or stretched out, arms at your sides, inhale deeply while inflating the belly to the maximum, then exhale, taking care to stick your lower back to the ground and empty your abdomen. Repeat, checking for several seconds. First for three seconds, then for five, then six and if you can, breathing out several times, for eight beats. An exercise that does not look bad but which is nevertheless essential for our deep abs.

Tips to reduce the cost of your auto insurance

- Compare the prices

- Use the promotions in force

- Do not report small claims

- Gear up against theft

- Subscribe to group contracts

- Pay your insurance premium annually

- Install a dashcam

- Take out a "Pay how you drive" contract