Will Your Driving Habits Have An Effect on Your Premiums?
YES! the more risky you appear, the higher your premiums. This means that if you and your neighbour drove the same car and chose to insure it for the same value; you might still end up paying a different premium nevertheless. In calculating your premiums, you will be ‘judged’ on a number of factors – which include the way you drive, in addition to other considerations.
1. Claims and Driving History
It’s unclear how your claims history might affect the premium if no fault can be determined, but it certainly is an area of interest for insurance companies. This is because they are looking at the likelihood of a driver to make a claim in the future. Thus, if you have frequently claimed for accidents or lost vehicles in the past, this could be reflected in your risk profile and affect your premiums.
2. You drive a lot.
Whether it’s for work or play, the more you drive, the more you risk being involved in an auto accident of some sort.
3. There is anyone else on your policy.
Even if you are confident in the driving abilities of anyone else on your car, you can’t control other drivers―including those on your policy.
4. Driving Purpose
When looking at the likelihood of an accident or a car getting stolen, it’s important to note how the car will be used. For instance, will the driver be on the road during peak accident hours? If yes, then he or she might be subject to a higher premium. Conversely, if a driver uses the car infrequently and travels to nearby, low-theft locations during low-peak hours, then lower premiums could apply.
5. You drive in high risk areas.
This includes highly populated cities where there are plenty of other motorists on the roads.
OTHER
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