You won’t believe some of the factors affecting your premium

Car insurance costs can soar sky high. Your premium can sometimes cost almost as much as the car you’re driving around in! You wouldn’t believe some of factors influencing your premium.

A recent Senate enquiry has exposed some of the weird and wonderful ways insurers are using information to increase the cost of your car insurance.


Simply strange factors that are hiking the cost of car insurance

Car colour

  • If your car is any colour other than white, you’re likely to pay more. Especially if your car is red! Go figure.
  • Apparently those of us driving brightly coloured cars can tend to be risk takers who are more prone to crash. Hmm.

Your marriage status

  • Many insurance cost comparison sites are starting to ask for your relationship status.
  • Insurers are yet to reveal what impact a person’s answer may have on their premium quote.
  • It has been suggested that the theory is married people have less risky driving behaviours and are less likely to make a claim.
  • Perhaps insurers think those of us who are single are getting out and about more and driving less safely. Huh?

Time of day

  • People who buy their insurance in the morning typically report receiving better service and having a better experience.
  • Strangely, apparently you can expect to pay more for insurance in the evening.
  • Insurers haven’t been quite able to explain why, but it’s worth remembering if you’re keen to save a few dollars!

Where you live

  • The suburb you live in plays a significant role in determining how high your premium is.
  • Areas with higher car theft will pay more for car insurance – regardless of whether your car is safely locked up in a garage.

Your car

  • Different cars that are worth the same amount will cost different amounts to insure.
  • Factors includes the power of your engine, the usual cost of parts and repairs, the vehicle’s safety rating, popularity with car thieves and whether it has a security system.

Who’s behind the wheel

This one isn’t as surprising, but it certainly pays to understand all the details your insurer is likely to be taking into consideration.

  • Your age, gender, driving and claims history all determine how much your premium will be.
  • Insurers consider younger, less experienced drivers to be more likely to claim and therefore charge them more.
  • Adding extra drivers to your policy, even if they’re considered safe and experienced, can add to your premium.

So while there’s little you can do to change your age, gender, years of driving and past claims history, is does pay to keep your record as clean as possible. This will help minimise your premiums in the future.


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  • Have you been hit with a high car insurance bill or another one of life’s unexpected little surprises?
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