Does good driving pay?

good driving

In the world of car insurance do nice guys finish last, or does good driving pay?

In order to work out prices for customers, insurance companies tend to use the most convenient resource that they have at their disposal: statistics. In the eyes of an insurance company, these facts and figures show patterns about different types of drivers and can be used to paint pictures of certain groups, such as young drivers, old drivers or drivers with pets. While some groups might come up smelling of roses, other groups of drivers will not be painted in a favourable light, at least in the eyes of an insurance company. You can see for yourself the difference in insurance prices for different people at Captain Compare.

Unfortunately, this all means that certain groups, for instance male drivers, will tend to pay more than other groups, such as female drivers. While this might not be fair in some cases (some male drivers may in fact be lower risk for insurance companies than female drivers): an insurance company would point to the average statistics sat in front of them. The Australian reported last year that women drivers were named the best in New South Wales.

However, the stats are not the be all and end all for an insurance company, and are merely a tool for compiling general insurance rates; so the good news is that drivers do have the ability to influence their own insurance prices in the long run. Regardless of age, sex or amount of cats that you own, drivers who are well behave behind the wheel will see their costs to come down.

There are certain proactive actions that you can take to ensure you pay less for your insurance, for instance not speeding, which will reduce the risk of having points on your license. You can also pay less for your insurance if you own a car with a low capacity engine.

While many modifications made to a car will adversely affect the price of your insurance, if you fit a security device to your car, such as an alarm, you could see the cost of your cover fall dramatically. Another modification that could help you to reduce insurance prices is to have a black box fitted to your car. This is a device that allows an insurance company to assess your driving on an individual basis and offer you an appropriate quote.

Despite the ability of a customer to reduce their insurance rates with good driving, fair insurance prices are far from a certainty. The good news for careful and considerate drivers however, is that money isn’t everything. No matter how much you end up paying for your car insurance a good driver is far less likely to be involved in an accident than a reckless one. So while nice guys may not win every time, at least they have a better chance of making it to the finish line intact.