How Much should i be Paying for Car Insurance?
How much does auto insurance cost? A vast question for any driver who has just purchased a new or used vehicle that he must ensure. The answer depends on a series of parameters ranging from your personal situation, to your past as a driver to the nature of your vehicle and your uses.
The price depends on your driving experience
A young driver who has had his license for less than 3 years or who have not been insured for the last 3 years, will be subject to a premium during the first two years of insurance.
This will equate :
- up to 100% of the basic contribution for third-party insurance (or third party liability);
- to 50% the second year if the insured has been no accident involving his responsibility;
- it will be canceled in the third year if the insured has not known any responsible accident;
Finally, be aware that if the driver has benefited from accompanied driving, this surcharge can be reduced to 50% the first year.
The rate also depends on your liability as an insured
If you have had a series of accidents, committed serious offenses, have not always paid your dues, and are therefore measured or have been terminated by your former insurer, you will still be there apply a surcharge for two years, in case of no new claim responsible.
The latter will be:
- 200% if your license has been canceled or if it has been suspended for 2 months several times in the last year;
- 150% if you were responsible for an accident while you were intoxicated;
- 100% if you have been responsible for an accident or an offense that has led to a suspension of your license for more than 6 months;
- 100% if you committed a hit and run after an accident;
- 100% if you have not declared an accident in which you have been involved for the last 3 years;
- 50% if you have been responsible for three or more accidents in the last year;
- 50% if you were responsible for an accident or an offense that led to a suspension of your license from 2 to 6 months.
The price of car insurance depends on the car and your use
In fact, the premiums will be more important for new vehicles, because of their high value and risks of theft.
They will also be higher for powerful vehicles, with speed being one of the leading causes of accidents resulting in personal injury.
Likewise, your use will affect the rates. Thus, if you use your car for everyday business needs the risk of an accident is greater than if you use it for private trips from time to time.
Finally, the geographical area of circulation will also have an influence, the tariffs being higher in big cities, more accidentogenic, than in the countryside.
How to reduce the cost of your car insurance?
Last factor that will affect the price of your car insurance: the level of formula you choose!
Indeed, if the law requires you at least to be insured third, the owners of new vehicles, expensive or powerful will rather opt for insurance against all risks.