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How Car Insurers Calculate Your Premium

Ever wondered how your car insurance premium is calculated?

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No Claim Bonus

Insurance companies usually offer a ‘no claim’ bonus to policy holders who maintains a ‘clean record’ for a specific period of time. The longer the period you have not claimed, the greater the discounted premium you can expect to pay.

Credit Record

Insurers also make use your credit score as part of the criteria for calculating your insurance premium. Insurance companies see people who take good care of their financial situations, as typically a more careful type of driver. Commonly, the better your credit score, the lower your insurance premium will be.

Other Criteria

There are various other parameters that could affect the premium amount you would be quoted and is discussed more in detail in the article: What You Can Do to Lower Your Car Insurance Premium
Road side assistance, Car rental, Medical and Death coverage are extras that might not be a big part of your insurance premium, but these are also factored in your final amount.
These are further discussed in the following article: What Car Insurance Coverage Can I Do Without?
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