Wondering why your neighbourhood pays different motor premiums regardless you both have same car and similar parameters. It can be because many insurers considers multiple factors before estimating the exact motor insurance. The most common factors that affect your premium is deductibles and your preference to go for lower coverages. However, your car insurance premium also depends on several other factors. So, it is important to get yourself informed with those one to make a better decision. Before you buy a car insurance, you should do a proper research about current market price, best investments and latest policies. Here are some of the top factors that are affecting your car insurance premium.


1.Type of coverage: It can be the direct indication that what type of insurance you bought. There are two types of insurance third party insurance and comprehensive insurance. In the first one, the compensation applies only on other’s vehicle that is involved in a car accident except your vehicle. But, in comprehensive plans, the insurer will provide the compensation to both parties. Many people prefers the third-party insurance that costs less than comprehensive. So, it maybe another cause that affecting your regular premium.



2.Type of engine: Another factor is the type of engine that your car consists. The price of the premium may vary from engine to engine. For example, a car with 1000 CC is less costly than that of the car having 15oo CC engine. So, if you think why you pay less or more, this can be one of the factors that is affecting your premium.



3.Location: The are where you live, your car insurance will be registered on that. A location plays a crucial role in deciding your monthly/yearly premium. Insures first visit your area and then estimate the price that you can actually pay for. Metro cities have higher rate of vandalism and accidents so it costs much higher than that of small cities.



4.Car customization: There are several accessories that are not covered in the car insurance policy such as roof rails and spoilers. In case, you want them included in the insurance, then this you need to get them fitted by your dealer. This can raise the price of the car insurance premium but give you the surety of damaged compensation. The above-mentioned factors are crucial ad needs to be known when you are buying your car insurance. So, be aware about everything about what you are purchasing.