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How much does a car insurance policy cost?

Ever wondered how your insurers determine your car insurance cost? Kwiksure has this quick guide to help you understand the rationale behind your premiums.

Working out your car insurance prices

We all know that insurance companies use the price of premiums to balance the risk of paying out for claims, but have you ever wondered how car insurers calculate their prices? Kwiksure, one of Hong Kong’s leading motor insurance brokers, has the basics of what factors companies take into account when determining how much you pay for coverage.

While we can’t say that all Hong Kong insurers consider each of these factors, we are confident that this is generally what many take into account when offering you an insurance quote.

Car insurance calculator: four factors that impact your premiums

Here’s a brief list of the types of factors insurers may take into account when setting your car insurance cost:

  • About you: How old are you and how’s your driving record been? Younger, inexperienced drivers are statistically more likely to be involved in an incident, and those drivers with a history of collisions are just as likely to pay more than others. People who have a good driving history or an existing No Claims Discount will also likely pay lower premiums.

  • How you use your vehicle: Are you using your vehicle for work purposes? If so, what sort of work purposes? If you’re a company executive with a car, chances are you’re probably only using it for a commute. The premiums will likely be higher if you’re a sales rep that does a lot more traveling to visit clients and suppliers.

  • About your vehicle: What sort of vehicle do you have, how much is it worth, and what’s the capacity of the engine? It’s sort of common sense that an expensive Lamborghini is going to have a much higher premium than a Nissan run-around, while newer models will also have generally higher prices than older ones. The faster your car the higher the premiums also, as faster cars are perceived to be at greater risk of speeding or being involved in collisions.

  • How you use your insurance: If you’ve opted to pay an excess, how much have you agreed to pay before the insurance company reimburses your costs? The higher you have your excess, the lower you’ll pay in premiums.

The final, biggest factor in determining your premium price is what type of vehicle coverage you choose; do you need comprehensive or third-party car insurance? Both offer different levels of coverage that may be either more or less than what you need.

Comparing car insurance prices: Making sure you get the best deal

If you’ve just started looking for cover, or you’re already covered but checking the market for better options, it’s important to know how to compare different plans, premiums and benefits. You can do it yourself, or you could have an expert broker Kwiksure do all the work for you. Their advisors have over 16 years experiencing providing drivers with high quality car insurance plans at the best prices.

To get a free quote or just find out more about car insurance prices, try our car insurance price calculator today!