How is the price of your car insurance calculated?
Why do you have to answer so many questions to get a car insurance quote? The answer is simple: to offer you a price as close to reality as possible. In fact, to determine the premium amount of your car insurance as accurately as possible, insurers consider a multitude of data classified into three main pricing criteria, which they then compare with statistics linked to profiles similar to yours. Car insurance quotes allow them to obtain this information.
What are the pricing criteria related to the vehicle for calculating the car insurance price?
The criteria related to the car are fundamental when calculating your insurance. In particular, the following are considered:
- The make, model, and series of your car.
- Its fiscal power.
- Its age.
- Its purchase value.
- Its engine, whether gasoline, diesel, hybrid, or electric.
- Its options, such as driver assistance devices or multiple safety devices, which can increase the price of a vehicle.
The method of purchasing your car (new, used, or leased) also influences the amount of your car insurance premium, as well as how you use it:
- Parking location.
- Kilometers driven each year.
- Most frequent trips.
- Frequency of use.
- Profile of secondary and occasional drivers.
How does the driver’s profile affect the car insurance premium?
The criteria related to your driver profile and driving history have a strong impact on calculating your car insurance premium amount:
- Your age.
- Your gender.
- Your family situation.
- Your professional situation.
- Your place of residence.
- Your type of driver’s license and its age.
Due to the statistics linked to these criteria, certain profiles, such as young drivers or penalized drivers, are subject to very high surcharges, while others benefit from much more advantageous rates.
Of course, your driving history is also considered, thanks to your information statement, which shows your bonus-malus coefficient (also called CRM) and all the claims you have declared in the last 5 years.
Are there specific criteria for each insurer to calculate the car insurance price?
In addition to the criteria related to the vehicle and the driver, each insurer has its own specific criteria and commercial policy.
Some insurance companies specialize in risk profiles, which explains why good insurance for young drivers may be much less attractive to an experienced driver.
Compare car insurance with lesfurets
Finding an insurance contract without spending a lot of money? It’s easy with lesfurets! In just a few clicks, and after specifying your needs, expectations, vehicle specifics, and budget, we select the offers that are most likely to meet your needs. You can compare insurance prices and directly choose the coverage you prefer, all without leaving your sofa. Who could say it better?
Which cheap car insurance plan should you choose?
It’s true that car insurance rates can sometimes be very high depending on the plan chosen and the insurer’s pricing criteria.
We are not going to lie to you, the ideal solution to have cheaper car insurance is to adopt good driving habits and not cause accidents in order to benefit from a 50% bonus. Then, you can also opt for the most basic car insurance formula, that is, third party insurance.
So, more of a comprehensive or third party insurance? The more guarantees and services the chosen formula offers, the higher its cost will logically be. Third-party car insurance, which generally only includes mandatory liability coverage, is the most economical option.
By doing a comparison with lesfurets, you can find the cheapest car insurance plan, regardless of your coverage preference. Also, see for yourself: we have prepared three rankings of the 5 cheapest insurers (among our 30 partners) for each car insurance formula.
How to get cheap car insurance?
To pay for your car insurance as cheaply as possible, you can use several levers as a driver:
Your driving to benefit from the good driver bonus. Keep in mind that after 13 years without an accident, the price of your insurance is reduced by half.
The amounts of the deductibles and the maximum compensation limits (although this is not recommended, because pay attention to the note if you have an accident and the repairs are important).
The car insurance comparator, with equivalent guarantees, to hire the cheapest one based on your profile and your car.
Adapt auto coverage to your car
A good way to reduce the price of your car insurance is to adapt it to your type of vehicle: its age and condition, the frequency with which you use it, the kilometers traveled each year… These criteria are very important when it comes to choosing the insurance with the best quality-price ratio.
Third party car insurance is especially aimed at owners of old cars. In fact, the value of a car decreases depending on its age, so it is no longer essential to hire a comprehensive formula to insure it. So when to move to a third party? In general, the third-party formula is recommended for cars that are more than ten years old or when driven little.
Find Car Insurance Without Administrative Fees
When taking out a new car insurance policy, some insurers charge administrative fees that add to the premium amount. This is an additional cost that you can easily avoid. Therefore, you might prefer an insurer that offers no administrative fees to their new customers.
Consider Pay-Per-Mile Insurance
You don’t need to spend a fortune to insure your vehicle if you’re a low-mileage driver. You can opt for pay-per-mile car insurance, a plan that allows you to pay based solely on the number of kilometers you drive. Essentially, this option aligns with how you actually use your car.
Choose an Online Insurer
To get attractive car insurance rates, along with equivalent coverage and guarantees, online car insurance is often more advantageous than with a traditional insurer. Why? Because a 100% online agency has no costs related to the management of physical locations.
Cancel Your Car Insurance to Find a Cheaper Contract
With the Hamon Law, policyholders can cancel their insurance more easily, quickly, and frequently starting from the first anniversary of their contracts. This law aims to help people save on their limited expenses, thereby increasing their purchasing power. How? By periodically comparing different market offers.
So, to pay less for your car insurance premium, you can always try to renegotiate with your current insurer, but most importantly, you can switch companies! The Hamon Law allows you to cancel your car insurance contract at any time after one year, without additional costs or proof.
This system goes even further, as it also allows you to delegate the cancellation procedures to your new insurer to ensure continuity of coverage. If you want to do it yourself, simply inform your current car insurer by mail, email, phone, or through your customer area. To save time, let the new insurer handle everything!
Compare with Lesfurets to Find Cheap Car Insurance
Let’s be honest, finding cheap car insurance is everyone’s goal. While young drivers and those with modest incomes want to save each year on their car insurance, all drivers, in general, want to see their premiums reduced. Is this your case too? Then, you’re in the right place!
As soon as your contract expires, compare other car insurance policies by filling out our online form. In just a few minutes, you can compare quotes from several insurers against your current contract. Our Lesfurets panel includes over thirty partner insurers.
Don’t have car insurance yet? Run a car insurance simulation to see how much you’ll pay based on the chosen plans, guarantees, options, and services. Beyond the price, you can also sort the results by other interesting criteria: desired coverage level, content of the guarantees, deductible amounts, etc. Found what you’re looking for? Contact the selected insurer and you’re done: you’ve just secured cheap insurance!