Car insurance premiums aren’t just random numbers—they’re calculated based on the risk the insurer takes on when covering you. Things like the make, model, and age of your car all play a role in determining how much you’ll pay. By understanding these factors, you can find ways to keep your premiums in check.

The kind of car you drive is a biggie. Not all cars are worth the same, so the more expensive your ride, the higher the premium. This is because repairing or replacing your vehicle if it’s damaged or stolen is going to cost the insurer more. Also, if your car is popular among thieves, your premium might be higher due to the increased risk.

Who’s behind the wheel? That’s another major factor. Insurers look at the regular driver’s profile, which includes their age, driving experience, gender, and accident history. Younger drivers usually face higher premiums because they’re seen as less experienced. Your gender also plays a role—men typically pay more because they’re statistically involved in more accidents. If you’ve been in a few fender benders before, that’ll hike your premium up too.

Your demographics matter too. Aside from age and gender, things like your marital status, where you live, and your financial background come into play. Married people often get lower premiums because they’re considered more stable and less risky. Where you live affects your risk profile—high crime or accident areas usually mean higher premiums. Your financial history is also checked to see if you’re likely to keep up with your payments and cover any excesses.

Inflation doesn’t just impact your grocery bill—it also affects car insurance. As the cost of parts, labour, and repairs go up, so do your premiums, regardless of how old your car is.

Lastly, what security features does your car have? Installing an alarm or tracking device can lower your premium since it reduces the risk of theft.

Understanding these factors can help you manage and potentially lower your car insurance premiums. Having car insurance is a financial responsibility that safeguards you against unexpected expenses. So, make sure you’re covered!