Which factors affect your home and car insurance?
While these two products differ, there are certain aspects that affect both, as well as the cover that you as the policyholder will receive. These include:
Demographics: Among the factors which determine the premium you pay for your property or vehicle are your gender, age, occupation, marital status, where you live, and potentially a financial background check.
According to statistics collected by insurers, these give them a good indication of the likelihood of accidents, or break-ins, and the risk involved.
Security measures: Insurers want to see that you’re also doing your bit to protect your property and/or vehicle. This can be shown by installing a burglar alarm, high quality locks, double glazing, fire alarms, and maybe even smoke detectors. When it comes to a vehicle, a tracking device may also be a good idea.
Having these in place shows that you’re a responsible owner and it may result in a reduction of your premiums.
Another consideration is location. This refers to the area in which you own property. When it comes to your vehicle insurers tend to also want to know where your vehicle is parked overnight.
Different areas have different risk profiles, which are calculated in accordance with the frequency of thefts and other crime such as smash and grabs, hijackings, and home break-ins.
If you stay in an estate or an area with a fairly low crime rate, or your vehicle is parked in a secure garage overnight, chances are your premium will be low and vice versa.
Property or vehicle type: This simply refers to the type of property and vehicle you own. For example, if you drive a previously-owned Toyota Conquest versus a brand-new BMW your insurance premiums will differ.
Same goes for property. The maintenance of a double-storey property with a thatch roof and a swimming pool will cost more than a one-bedroom apartment or townhouse. Therefore, the premiums will also differ because the risk is higher.
Claims history: This is often overlooked but it’s a definite consideration both at the inception of a policy or during premium determination. Most insurers are suspicious of people applying for cover who have made numerous previous claims. This is because they view these people as a higher risk and maybe even charge them more. On the other hand, if you haven’t made any recent claims, you’ll often be rewarded with a “no claims discount”.
Home and contents insurance will ensure that you’re able to recover any loss or damage or related unexpected costs. Justmoney can help you find cover that suits your needs at affordable premiums.