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Renewing your car insurance policy may involve changes in the premium amount. Several factors can influence whether your premium will increase, decrease, or remain the same:

  • Personal circumstances – Changes in your circumstances, such as age, address, or marital status, can impact your premium. Certain life events or demographic factors may result in adjustments to the premium amount.
  • Claims history – A history of recent claims or accidents can lead to an increase in your premium. Insurance companies may consider you a higher risk if you have filed multiple claims, resulting in an adjustment to your renewal premium.
  • Policy coverage and limits – If you have changed or increased your policy limits, your premium may increase. Additional coverage or higher limits typically come with a higher cost.
  • Market trends – Market trends, including inflation, industry changes, and the overall claims experience, can influence insurance rates. These external factors may cause adjustments to premium rates.
  • No-claim bonus – If you have earned a no-claim bonus (NCB) for maintaining a claim-free record, it can lead to a discount on your premium. The NCB rewards safe driving behavior and can help reduce your renewal premium.


It’s important to note that premium changes are not solely determined by one factor but result from various considerations. Reviewing your policy, comparing quotes from different insurers, and assessing the coverage and premium options available during the renewal process is advisable. Doing so lets you make an informed decision that aligns with your needs and budget.

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