What affects your car insurance

Calculating a car insurance policy is a complicated business. Although the hard part is left up to the car insurance companies, it helps if you know the factors that affect your insurance. There are some steps you may be able to take to help keep your premium low.

Car insurers don’t just want to know your postcode out of curiosity. It tells them where you live, and so the crime rates in your area. If you live in an inner city, for example, your car is more likely to be stolen and so your insurance premium will be higher.

Obviously, we wouldn’t suggest moving areas to get cheaper car insurance but other measures may help. Whatever area you live in, parking your car off the road and installing an anti-theft device (immobiliser or tracker) will always reduce your premium.

Car insurers want to know all about you for a very good reason. They like to build up a picture of the kind of person they’re placing their trust in. So, if you’ve just passed your test, or you have some motoring convictions, then you’re going to be considered more of a liability than someone older who has a clean driving licence.

Similarly, if your job requires you to spend a lot of time on the road then this will also raise your premium. Insurers work on the assumption that the more time you spend driving, the more likely you are to make a claim. But lots of insurers specialise in insuring specific groups of people e.g. young drivers or people with zero no claims bonus. So, it’s best to shop around to find the best deal just for you. Someone you know might have a great deal on their car insurance, but that doesn’t mean it’ll be the same for you.

Use our car insurance comparison service to find a deal that is right for YOU.

If you’ve just bought a sports car and are hoping that’s the end of the pressure on your wallet – think again. Cars with larger engines, modifications or that are imported will all incur higher premiums. The more likely you are to make a claim, and the more expensive that claim might be, then the higher your quote will be. It’s that simple.

Unfortunately, insurers assume that drivers with sports cars will drive faster and make more claims. Their claims are also likely to be more expensive as high performance cars are costlier to repair. But, if you can off set this with a clean driving licence then your car insurance premium may be lower.