Traveling without car insurance is a disaster waiting to happen. According to the latest figures, there are around 13 million drivers’ licenses issued by the government. Unfortunately, a large part of this number is most likely untrained drivers, who just received their driver’s license even without formal training or education. This makes getting car insurance a must.

But what most people don’t know is that not everyone will most likely end up with affordable car insurance. If you plan to have the cheapest car insurance premium, it is imperative to know the things that could affect its price.

Car

What type of car are you driving? If you are driving a Ferrari, then expect a higher premium given the cost of the car and its repair. If you have a car such as a Honda Civic, for instance, its parts are most likely cheaper than other brands since it could easily be found anywhere. This could also play a role in the pricing of your car insurance.

The age of the car is also a factor to consider. The older the car gets, the more likely that you’ll pay a slightly higher insurance premium. This is because of the wear and tear factors that are at play.

How do you intend to use the car?

If you are going to have a commercial vehicle, most likely, this will have a higher premium than a car that is meant to be used driving to work. Mileage and exposure on the road are most likely the things that are going to be scrutinized closely by a car company.

Gender

According to experts, men are considered a higher risk than women. Yes, you can blame testosterone for road rage and other stupid decisions, but if you are a male applying for car insurance, expect stricter scrutiny or even a higher premium compared to female counterparts.

18-25 Years Old

According to statistics, occurrences of car accidents are most likely to happen when the one behind the wheel is actually below 25 years of age. According to statistics, from 26 until before you reach senior citizen status, you’ll most likely pay the same premium.

History of past violations

If you’ve had serious offenses related to driving on the road, you can expect a higher car insurance premium. For instance, if you are a respondent to a reckless imprudence case resulting in injuries or damage to property, this could automatically be a red flag to car insurance companies. As a rule of thumb, maintain a clean record while driving. This way, you don’t have to deal with a higher insurance premium.

It is important to know the factors that could affect your car insurance premium. This way, you’ll get the best bang for your buck. The definition of a “low risk” to a “high risk” though is not really prioritized here in the Philippines, unlike in other countries. Rarely do you see an under 25 car insurance policy offered by car insurance companies here in the country? But still, you want to drive safely to ensure that future car insurance applications go as smoothly as possible.