You’ve probably already got a reasonably good idea of most of the pivotal factors that affect your car insurance, whether you’re a brand new driver or you’ve got years of experience. For example, your driving history, and the type of vehicle you own, are two fairly well-known factors that affect your car insurance – which is one key reason why so many new drivers choose second-hand cars from our own online car auctions.
However, there are a couple of slightly less obvious factors that can also have a significant impact on your insurance costs. As ever, some of these you can have some modicum of control over, and some you can’t – but it always helps to know what they are! Here are six surprising factors that could affect your car insurance.
Your job
Surprisingly, your job can play a substantial role in determining your car insurance premium, because insurers assess risk based on the likelihood of claims made by individuals in different professions. For instance, if you work in a high-risk job – such as something in construction or delivery services – you might find you’re facing higher premiums, largely due to an increased likelihood of accidents.
On the other hand, if you work in what’s perceived to be a lower-risk field, like IT or finance, you might be able to enjoy more favourable rates. Some insurers provide discounts for specific occupations considered low-risk, so it’s worth checking if your job qualifies!
The colour of your car
You might have already heard that the colour of a car can influence insurance premiums, and in fairness, that’s not necessarily incorrect, but the reality is a bit more nuanced. Certain colours, such as red, have long been thought to attract higher premiums because they’re associated with energy and more aggressive driving styles, but that’s not quite true. Colour does count, but it’s not about driving styles – what truly matters is how visible and safe the colour is on the road. For instance, bright colours like yellow or orange can help increase visibility, potentially reducing the risk of accidents. Cars with darker colours may be more prone to theft, which could indirectly affect insurance rates. So, while colour alone may not directly affect your insurance rate, it can play a role in your overall safety profile.
Your credit score
Lots of insurers consider your credit score when calculating premiums (the UK isn’t particularly unusual in that regard). A poor credit score can lead to higher insurance rates, as it is often seen as an indicator of risk – basically, the idea is that drivers with lower credit scores may be more likely to file claims, prompting them to adjust rates accordingly. For that reason alone, maintaining a healthy credit score can be beneficial not just for securing loans, but also for keeping your car insurance premiums in check. It’s not a bad idea to regularly review your credit report to identify and rectify any inaccuracies that might negatively affect your score. Similarly, don’t hesitate to take any proactive steps you can to improve your credit, as this can have a lasting impact on your overall insurance costs.
The area you live in
It might seem unfair, but your residential area can significantly influence your car insurance premium. Insurers tend to assess risk based on crime rates, traffic density, and the likelihood of accidents in your local area. Living in a high-crime area may result in higher premiums due to the increased risk of theft or vandalism. This is part of why premiums tend to be higher for people living in city centres – even if the area doesn’t feel particularly heavy on crime, the higher population concentration often means the figures average out to higher levels, which has the effect of increasing insurance premiums for almost everyone living there.
On the other hand, if you live in a quieter area, (typically a suburb), you might benefit from lower rates. Insurers may also consider factors such as local weather patterns and road conditions when determining risk – although to be honest, this is less of a problem for us here in the UK, where the weather tends to be fairly similar across the entire country. It’s more of an issue for drivers in countries like America, where the weather can vary massively depending on what state or city they live in.
Of course, it’s probably not worth going through all the hassle of selling your house and moving just to get lower car insurance rates – but if you’re ever looking at moving out anyway, it might be something to bear in mind.
Your relationship status
“Stronger together” might be a maxim that’s not always universally true – but unfortunately for single people, it’s often applicable when it comes to insurance premiums. This is through a strange quirk of statistics – statistically, married drivers tend to be involved in fewer accidents than their single counterparts, which can lead to lower insurance rates. Insurers therefore often view married drivers as more responsible and less risky, resulting in potential discounts. Having a partner who also drives can allow you to bundle policies, which may further reduce your overall costs. If your relationship status changes, it’s worth revisiting your insurance policy to see if you qualify for a better rate based on your new situation. (Of course, we understand if it’s not necessarily the first thing on your list of priorities though.)
Modifications to your vehicle
Vehicle modifications can also have a significant impact on your insurance premiums. While some modifications, like upgraded safety features, may lower your rate, others – such as performance enhancements or aesthetic changes – can lead to increased costs. To be honest, it’s far more likely that any kind of modification is going to raise your insurance premium than lower it, even if the mod itself is supposed to boost safety.
Insurers often view modified vehicles as higher risk, and they’ll raise premiums accordingly. Of course, we know that may make it tempting just not to mention modifications when you’re renewing your insurance, but we wouldn’t recommend that either – it can result in complications if you need to make a claim. It’s also worth bearing in mind that some modifications can also affect your vehicle's warranty – so it’s always a decision that needs careful consideration!
As we’ve touched on above, second-hand cars can sometimes be cheaper to insure than brand new vehicles – and if you’re on the lookout for any salvage cars of your own, you’re in exactly the right place. Here at RAW2K, we update our online car auctions daily and weekly. We also include makes and models available from some of the world's leading manufacturers and, as we know now, firm public favourites like Volkswagen, Ford, Renault, and many more. Why not take a look through our online car auctions, and see what you can find?
