When it comes to taking out car insuranceMany people don’t realize it, but it’s the details that make all the difference to the final price. Some simple mistakeswhich seem harmless, can make you pay a lot more than you really need to.
Things like having a history of accidents or a short driving record can add up. The age of the driver and even the type of car you drive have a big influence. Want to understand more about how this works? A ACP explains the factors that affect the cost of insurance.
The good news is that you can save money. With information and some smart decisions, you can avoid pitfalls and not pay more than you should.
The impact of your habits on the cost of car insurance
There’s no getting away from it: the way you drive says a lot about you – and about how much you’ll pay in insurance. For insurers, your every traffic habit helps to paint a picture of the risk you represent.
And that’s where the catch is: when you understand how these small attitudes impact your policy, you start to see where you can improve – and make real savings.
How insurance companies calculate the price of your insurance
When it comes to calculating the price, insurers cross-reference a lot of data. They look at who is behind the wheel, the model of the car and, above all, how it is driven on a daily basis.
Among the risk factors most commonly assessed are:
- Your history of accidents and fines
- Age and driving time
- Type of vehicle and its specifications
- Region where you live and usually drive
If you really want to save money, it’s worth adjusting your habits. And if you’re thinking of selling your car, this article gives you some useful tips on how to avoid falling into a trap.
Hiring mistakes that increase the cost of the policy
Choosing insurance isn’t just about clicking on the first one that pops up on Google. Many drivers make mistakes at this stage and end up paying dearly – literally – for not paying attention to a few points.
1. Not comparing prices between different insurers
A classic mistake: going with the first insurance company that comes along. Without comparison, you can pay a lot more for cover that you would have got for a lot less from another company.
Online tools to make comparison easier
Nowadays, you can do this research in just a few clicks. There are websites that compare prices and coverage in real time. Use this to your advantage to find the best value for money.
2. Taking out too much or not enough cover for your needs
Taking out too much cover can be a waste of money. Too little cover, on the other hand, can leave you in the lurch when you need it most. The key is balance.
An expert reinforces: “it is essential to know what you need and choose the best insurance for you.” And we agree.
3. Withholding important information when hiring
Sometimes, in an attempt to lower the price, some people end up hiding important information. But this choice can be costly in the future.
Consequences of incorrect data declaration
Lying or omitting to provide employment information can result in loss of cover if there is a claim. It’s like signing a contract with an invisible cancellation clause. Always tell the truth – including about your history of driving.
“Being transparent when taking out insurance is crucial. Hiding information can cause serious problems in the future.”
In the end, choosing well and carefully is the best way forward. Avoid these mistakes and guarantee a fair policy that protects your car and your pocket.
10 common driving-related mistakes that make your car insurance more expensive
Yes, your driving habits could be increasing – and a lot – the cost of your insurance. Some everyday slip-ups go unnoticed, but insurance companies are watching. And the effect is straight into your pocket.
When you understand how these mistakes affect the price, it’s easier to correct course and save money. And the best thing: without giving up your protection.
4. Accumulating fines and traffic offenses
Fines are more than just a headache and points on your license – they build up a history that weighs on your risk profile. For insurance companies, this behavior is a sign that you could be involved in accidents.
How offenses affect your risk profile
Running red lights, speeding, using a cell phone at the wheel… all of these are on the radar. And the more offenses, the higher the risk calculated by the insurance companies – and the higher the value of the policy.
5. Driving in high-risk areas unnecessarily
Do you often pass through areas with a high rate of theft or accidents? Even if you’re just passing through, this can have an impact on your insurance calculation. Whenever possible, avoid unnecessary journeys through these areas.
6. Not informing the main driver correctly
Leaving someone else’s name as the main driver to try to pay less? This is fraud – and it can cost you dearly. If an accident happens and the insurance company finds out, you could lose your cover.
The impact of the driver’s profile on the cost of insurance
Factors such as age, time on the license and driving record make all the difference. Experienced drivers with no serious incidents usually get cheaper insurance. For more tips, see this link.
Knowing about these mistakes and avoiding them can reduce your insurance costs considerably. It’s a worthwhile precaution.
Mistakes in vehicle maintenance and care
It’s not just the way you drive that counts. The way you look after your car also has a direct influence on the cost of insurance. A well-maintained vehicle conveys safety – and that reduces risk.
7. Neglecting preventive car maintenance
You know that postponed oil change or the strange noise you pretend you didn’t hear? That’s right… neglecting maintenance preventive maintenance can lead to serious mechanical failures – and the risk of an accident.
The link between maintenance and accidents
Poorly maintained cars tend to break down more, fail in critical situations or even cause accidents. Insurance companies know this and increase premiums for vehicles with a history of problems.
8. Undeclared modifications to the vehicle
Have you fitted bigger wheels, changed the exhaust or turbocharged the engine? If you haven’t told your insurer, you’re at risk. And a big one. In the event of a claim, your policy could be void.
Changes that insurers consider high risk
There are modifications that are seen as potentially dangerous by insurers, such as:
- More aggressive aesthetic modifications (e.g. customized painting or radical enveloping)
- Exhaust modifications that increase noise or performance
- Improvements that increase power, such as a reprogramming chip or additional turbo
Transparency is everything. Declaring these changes avoids unpleasant surprises and ensures that you are really protected.
Administrative failures that impact the value of insurance
Sometimes a simple bureaucratic oversight can make your insurance more expensive than it should be. Things like not updating your address or paying too much in installments seem harmless, but they make a difference.
9. Not updating registration data regularly
Have you moved house, changed jobs or got married? All of this can have an impact on your risk profile. If the data is out of date, the insurance company can calculate the insurance based on the wrong information – and charge you more for it.
Information that must be kept up to date
- Address: The area where the car drives or sleeps has an impact on the risk of theft, collisions, etc.
- Marital status: Yes, getting married can even improve your profile with some insurers.
- Profession: Some occupations have higher risk statistics, and others may even give a discount.
10. Delaying payments or paying in many installments
Delaying the payment or splitting the insurance into a thousand installments can be more expensive. Some insurers apply interest, fees or even lose the discount offer for paying in cash.
More economical payment alternatives
If it fits your budget, paying in cash or in a few installments reduces the total amount. Some companies offer up to a 10% discount just for choosing this payment method.
In the end, the secret is in the details. Taking care of your car, your driving style and keeping everything in order with the insurance company can make your car insurance fits better in your pocket.
Smart strategies to reduce the cost of your insurance
Hiring a car insurance goes beyond just filling in a form and waiting for the policy. Small attitudes make all the difference – both in terms of protection and the final price.
Always compare prices between insurance companies, choose cover that really meets your needs and keep the vehicle’s maintenance up to date. Your driving also counts for a lot: the safer you are, the lower the risk – and the cheaper the insurance.
Updating your details and avoiding late payments are simple adjustments that also help to reduce the final price. These strategies not only guarantee savings, but also the peace of mind of being well protected.