Price Of Car Insurance, Car Insurance Policy

How The Price Of Your Car Insurance Is Calculated

There are a huge number of different details about you that can affect the cost of your car insurance. Below are some of the biggest ones, but remember that every question an insurance company asks will have some bearing on your premium - after all, that's why they ask them.

Answering these questions over and over again can be really mundane so use our comparison tool, enter your details once, and get quotes from over 100 companies.
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Factors that affect the price you pay

The car: Obviously, this makes a huge difference. For example, the more expensive a car is, the more it costs to replace, and also the more attractive it is to thieves. Each vehicle is also categorised into a car insurance group by the Insurance Group Rating Panel, based on a number of different factors including the cost to repair the vehicle, safety ratings and maximum speed. These groups range from 1 (the cheapest to insure) up to 50 (the most expensive to insure), and form a base around which car insurance companies build your quote.

Postcode: If you live in a city or town centre, insurers see you as a higher risk. Urban areas tend to have higher crime rates, so devices like alarms, immobilisers and trackers can help to decrease the added cost of your car insurance- which is even higher if you park on the street in these areas.
 
Age and Experience: If you're a newly qualified driver, under the age of 25, or both, you are deemed to be of a higher risk than other motorists by insurance companies, and as such you will have to pay more for the same cover. The younger and therefore less experienced you are, the more you should expect to pay; this also applies to any policies you are added to as a named driver.