How is car insurance premium set?

Does age have to do with a high premium?

Young drivers, up to age 24, pay more for their car insurance than older drivers. This is because insurers charge higher premiums for young drivers because they often cause more damage than older, more experienced drivers. In addition, young drivers often have few or no claim-free years, so they do not receive a premium discount. This makes the premium even higher. By comparing insurers, you can select the car insurance that is best and cheapest for you.

Does it matter which zip code I live in?

It may sound crazy, but where you live can also affect the amount of the premium. Insurers reason this way: the chance of car damage is higher in the Randstad than in the quiet countryside. Moreover, cars are stolen more often in big cities like Amsterdam than in a quiet village in Friesland. Therefore, as a resident of the Randstad, you may pay a higher premium than if you live in a smaller town. In this way, the amount of the premium is tailored to the statistical risks.

How do I build up claim-free years?

You build upclaim-free years by not claiming on your car insurance policy. One year of no claims entitles you to one claim-free year. As long as you do not claim any damage with your insurer, you will build up claim-free years during the term of your car insurance. With these claim-free years you will receive a premium discount on your car insurance. The more claim-free years you build up, the more premium discount you will receive.

Which coverage is convenient for me?

Finally, the coverage you choose for your auto insurance also affects the premium. There are three types of coverage. Third-party auto insurance provides coverage for damage caused to others. This is the minimum and mandatory coverage. You can also choose WA limited casco. This is an extension of the third-party insurance. With this you are also insured for damage caused by fire, storm and hail for example. Theft is also insured with this coverage. The most extensive car insurance is the WA full collision, also known as All-risk. With this coverage your insurer also pays for damage caused by vandalism and own damage after a collision. All-risk car insurance is usually chosen for new cars until they are a few years old.

In addition to the above factors, the new value, daily value and weight of the car also play a role. The comparison tool on Alpina.nl takes all premium determining factors into account.

Will my premium go up after claiming damage?

Do you have car damage and claim it with your car insurance company? Then this will cost you claim-free years. Insurance companies determine on the basis of the bonus-malus ladder and the number of valid claim-free years you have accumulated, how much discount you get on the basic premium of your car insurance. As long as you do not claim any damage during the term of your insurance policy, you build up one claim-free year each year. This means that each year you move up one rung on the bonus-malus ladder.

When you claim damage, you naturally drop down the bonus-malus ladder, which also means your premium goes up. The drop on the ladder is usually several steps at a time. You can even end up with a negative number of claim-free years, which means you have to pay premium surcharges. It is therefore always wise to check whether it is really necessary to claim the damage. In some situations it is more advantageous to pay for the damage yourself if possible, in view of your claim-free years and the premium discount.

Take out car insurance directly through Alpina

At Alpina.nl you can already calculate the premium for your car insurance. You can do this with our online comparison tool. You only need to fill in some information about yourself and your car, select the desired coverage and then you can easily compare providers. When comparing car insurance, it is important that you look at both the price and the coverage of the insurance. With us, you will immediately see the corresponding policy terms and conditions, so you know exactly what you will soon be insured for. This way you will not be unpleasant surprises in case of damage.

Do you still have questions about buying car insurance? Then be sure to contact us! Our insurance specialists will be happy to help you.