Why Is Smart Car Insurance Expensive

Why Smart Car Insurance Is Expensive

Meta: Are you wondering why smart car insurance is expensive? There are many reasons why smart car insurance can be expensive. Let’s learn about them in this piece of writing.

Introduction

Smart car insurance may cost motorists much. So why is smart car insurance expensive? The cost of smart car insurance is high because the cost of claims is high. Therefore, insurance companies raise premiums to protect their coffers.

Unfortunately, many smart car insurance claims are fraudulent and only honest motorists accept to pay the (increased) price.

The cost of fraud

According to data from the Association of British Insurers (ABI), the insurance industry detected 125,000 cases of fraudulent claims worth £1.3

The penalties for flouting the rules can be harsh. You could be issued with a fixed penalty of £100 and your vehicle could be wheel-clamped, impounded or even destroyed. In the most serious cases, you could face prosecution and a maximum fine of £1,000.

Gendered insurance

Even though women are considered safer drivers than men, insurance firms are no longer allowed take gender into consideration when they set smart car insurance premiums, as ruled by the European Court of Justice.

However, women can still get marginally cheaper insurance premiums as they usually drive less powerful cars and spend less time on the roads than men.

Smart car insurance for young drivers

Smart car insurance for young drivers is 18% more expensive than for older motorists because the younger the drivers are, the more likely they are put in claims.

According to the statistics, one in five drivers has an accident in the first year of driving and about a quarter of road accidents involve a driver between the ages of 17 and

Standard motor insurance covers social, domestic and pleasure use only. But, if you drive your car as part of your job, you will need a specialist policy, or the insurer could refuse to pay any claims you make.

Postcode problems

Insurance companies take a number of risk factors into consideration when determining premiums.

Insurance premiums in inner city areas are often much more expensive than in more rural locations because crime rates are higher.

Even within the same city a postcode change can decrease or increase your annual premium depending on the crime rates. And even if an area sees a fall in the crime rates, you are likely continue paying higher premiums because insurers are slow to update their records.

Smart car insurance groups

Normally, the higher the insurance group, the higher the premium. The ratings are decided based on information on the likely cost of any claim, including the time and cost of repairs, the value of the car when it is new, the performance of the car and the standard safety features on the vehicle. Besides, any modifications to the car can add extra cost to your premium.

Cutting the