Your car insurance quote is based on the following:
- Personal Circumstances
- External Factors
- The level of cover you require
Personal Circumstances
The Insurance Group of your Car - Each make and model of vehicle is assigned an insurance category, based on various factors including the car’s value, performance and cost to repair.
Click here for more information on Car Insurance Groups.
Age and Experience as a driver - If you are under 25 or have only been driving for a short while, then your car insurance will be more expensive because statistics show that the younger and more inexperienced you are the more likely you are to have an accident. More experienced drivers can expect a lower premium.
If you have a teenage son or daughter it is usually cheaper to insure them on your own car on your policy for a short while, rather than have them get their own policy on a car. Another tip to reduce your premium is to take an advanced driving course, which are run by most driving instructors.
Insurance History - No Claims Discounts - Drivers who do not claim on their insurance get ‘no claims’ discounts. Typically the discount can range from 30% - 65% depending on how long it’s been since you last claimed.
Your Address - The cost of your premium may be affected by where you live. The installation of additional security e.g. locks, alarms, immobilisers etc can help reduce costs.
Your Occupation - What you do for a living may also affect the cost of your car insurance, as some occupations are considered more high risk than others.
Excess - Your excess is the amount which you are willing pay towards the cost of any repairs. For example, if your excess is £200, and the repairs to your vehicle cost £1800, then you will pay £200 and your insurance company will pay £1600.
You can decide how much your excess is - the more your willing to pay out, the lower your premium.
External Factors
Uninsured Drivers - Surprisingly, official statistics state that 1 in 20 drivers are uninsured and other statistics have previously stated then this number could actually be nearer to 1 in 10 drivers. Insurance premiums are affected by this and it is said that around £30 of your insurance premium is to cover the fact that you may be in an accident with an uninsured driver.
Litigation - Personal injury claims following car accidents are on the rise as our society is becoming increasingly litigious. As it is the insurance companies who foot the bill for any financial compensation awarded by the courts this has caused premiums to rise.
Medical Expenses - The accident and emergency part of the NHS can now claim back the cost of treatment (and ambulance) from insurance companies. As medical expenses increase, again the costs of policies rise.
Stock Markets - Insurance premiums are becoming higher because the money which is paid for insurance is often invested by insurance companies until a payout is necessary. This means that whilst the state of the stock market remains unstable, premiums are likely to increase.