How is a car insurance premium determined?

Does age affect the premium?

Young drivers, up to age 24, pay more for their auto insurance than older drivers. This is because insurers charge higher premiums for young drivers, as they tend to cause accidents more often than older, more experienced drivers. In addition, young drivers often have few or no claim-free years, which means they don’t qualify for a premium discount. This makes the premium even higher. By comparing insurers, you can choose the car insurance policy that’s best for you and the most affordable.

Does it matter what my ZIP code is?

It may sound strange, but where you live can also affect the amount of your premium. Insurers reason as follows: the risk of car damage is higher in the Randstad than in the quiet countryside. Furthermore, cars are stolen more often in large cities like Amsterdam than in a quiet village in Friesland. That’s why, as a resident of the Randstad, you may pay a higher premium than if you lived in a smaller town. In this way, the premium amount is adjusted to reflect the statistical risks.

How do I build up my claim-free years?

You accumulate claim-free years by not filing any claims on your auto insurance. One year without filing a claim entitles you to one claim-free year. As long as you do not file a claim with your insurer, you will accumulate claim-free years during the term of your auto insurance policy. These claim-free years entitle you to a premium discount on your auto insurance. The more claim-free years you accumulate, the greater your premium discount will be.

What kind of coverage is right for me?

Finally, the coverage you choose for your auto insurance also affects your premium. There are three types of coverage.Third-party liability auto insurancecovers damage caused to others. This is the minimum and mandatory coverage. You can also opt for limited comprehensive coverage. This is an extension of third-party liability insurance. With this coverage, you’re also insured for damage caused by, for example, fire, storms, and hail. Theft is also covered under this plan. The most comprehensivecar insuranceisfull comprehensive coverage,also known as “all-risk.” With this coverage, your insurer will also pay out for damage caused by vandalism and damage to your own vehicle following a collision.  All-risk auto insurance is usually chosen for new cars until they are a few years old.

In addition to the factors listed above, the car’s new value, current market value, and weight also play a role. The comparison tool on Alpina.nl takes all factors that determine the premium into account.

Will my premium go up after I file a claim?

Have you sustained damage to your car and are you filing a claim with your auto insurance company? If so, this will cost you your claim-free years. Insurance companies use the no-claims discount scale and the number of valid, accumulated no-claims years to determine how much of a discount you’ll receive on the base premium of your auto insurance. As long as you don’t file a claim during the term of your policy, you’ll accumulate one no-claims year each year. This means you’ll move up one step on the no-claims discount scale each year.

When you file a claim, you will naturally move down the no-claims discount scale, which also means your premium will increase. You usually move down several steps at once. You may even end up with a negative number of claim-free years, which means you’ll have to pay a premium surcharge. It’s therefore always wise to consider whether it’s really necessary to file a claim. In some situations, it’s actually more cost-effective to pay for the damage yourself if possible, in order to preserve your claim-free years and your premium discount.

Get car insurance right away through Alpina

On Alpina.nl, you can calculate your car insurance premium in advance. You can do this using our online comparison tool. All you have to do is enter some information about yourself and your car, select the coverage you want, and then you can easily compare providers. When comparing car insurance, it’s important to consider both the price and the coverage. With us, you’ll immediately see the corresponding policy terms and conditions, so you’ll know exactly what you’ll be covered for. That way, you won’t face any unpleasant surprises in the event of a claim.

Do you have any questions about purchasing auto insurance? Please feel free to contact us! Our insurance specialists will be happy to help you.