Factors Affecting Insurance Premium

Ever wondered why your car insurance premium is so much higher than your peer’s insurance premium? Well, the cost of insurance premium is affected not only by the type of insurance coverage, but also other factors as listed below:

1. Type and model of vehicle
The type of vehicle will affect your insurance premium. Insurance premium for a sedan/hatchback car would generally be cheaper than coupes/cabriolet. Off peak car would also have a cheaper premium as they are deemed as lower risk of accident due to lesser time on the road.

2. Age of vehicle
The cost to insure older vehicles is usually lower than new vehicles as car parts are easier to find and cheaper to replace.

3. Engine capacity
The cost of insurance premium will be higher for cars with larger engine capacity. If your car is on a performance engine or turbocharged engine, the insurance premium will be higher as well.

4. Driver’s details and profile
Driver’s age, gender, driving experience, occupation and past claim records (if any) will also be factored into your insurance premium quote.

Premium for younger drivers below age 26 would be a lot higher than older drivers because insurer sees them as inexperience and tend to be hot-headed and reckless. Also, drivers that had made numerous claims in recent years will be labelled as high-risk drivers and thus will receive higher premiums as well.

For careful drivers who did not make any claims will be rewarded with No-Claim discount (NCD). The NCD kicks in whenever you renew your car insurance annually. Find out more about NCD here.

If you are looking for a car with low insurance premium, get a non-performance naturally aspirated car such as a Honda Fit 1.3GF or Honda Vezel 1.5X. Your insurance quote for the car would be very affordable.

Time to renew your car insurance? Get a free quote from Speed Credit or call us at 6444 4400 to speak to our consultants.