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How is the premium of a car insurance policy determined?

Before you purchase auto insurance, you obviously want to know what you will soon pay in premium each month. A car insurance premium is determined based on several factors. Based on these factors, the insurer looks at how likely it is that they will have to pay compensation. They therefore make a risk analysis. For this they look at your age, for example, but also at the number of claim-free years you have accumulated. When it comes to insurance, the higher the risk, the higher the premium. On Alpina.nl we will show you how the premium for car insurance is determined.

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Premium determining factors

There are a number of factors that play an important role in determining the premium of a car insurance policy:

  • Your age
  • Your postal code
  • The desired coverage
  • The number of accumulated claim-free years

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Does age have to do with a high premium?

Young drivers, up to the age of 24, pay more for their car insurance than older drivers. 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 years without claims and therefore do not get 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 strange, but the place where you live can also influence the amount of the premium. Insurers reason like this: the chance of car damage is greater 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 an inhabitant of the Randstad, you may pay a higher premium than when you live in a smaller town. In this way, the level of the premium is adjusted to the statistical risks.

How do I build up claim-free years?

You build upclaim-free years by not making any claims on your car insurance. One year without a claim entitles you to one claim-free year. As long as you do not make any claims with your insurer, you build up claim-free years during the term of your car insurance. With these claim-free years you 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 cover you choose for your car insurance also affects the premium. There are three types of coverage. The WA car insurance offers coverage for damage caused to others. This is the minimal and obligatory coverage. You can also choose WA limited casco. This is an extension of the WA-insurance. With this insurance you are also insured for damage caused by for example fire, storm and hail. Also theft is insured with this coverage. The most extensive car insurance is the WA full casco, also known as Allrisk. With this coverage your insurer will also pay for damage caused by vandalism and own damage after a collision. The all-risk car insurance is mostly 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 do you claim this from your car insurance company? Then this will cost you years of claim-free time. Insurance companies determine, based on the bonus-malus ladder and the number of valid claim-free years, how much of a discount you will receive on the basic premium for your car insurance. As long as you do not claim any damage during the term of your insurance, you build up one claim-free year each year. This means that each year you move up one step on the no-claims bonus ladder.

When you make a claim, you naturally fall on the no-claims bonus ladder, which also means that your premium increases. The drop on the ladder is usually by several steps at once. You can even end up with a negative number of claim-free years, as a result of which you will have to pay a premium surcharge. Therefore it is always wise to check whether it is really necessary to claim. In some situations it is cheaper to pay for the damage yourself if possible, with an eye on your claim-free years and premium discount.

Take out car insurance directly through Alpina

On 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 have any questions about car insurance? Then please contact us! Our insurance specialists will be happy to help.

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  • To calculate premiums, we need the zip code of the primary driver. For private use, the youngest driver must reside at the same address as the applicant. In case of business use, you can enter the postal code of the company here.

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