When you get a quote for your car insurance, the insurer will use a range of measures to determine how much of a risk you are to insure: the higher the risk, the more they will charge you to get insured.
However, different insurance providers will decide themselves how much weight to attach to each risk factor, which explains why you often get a range of different prices when you get a quote.
What factors do they consider?
Insurers will use various measure to calculate your insurance price, including:
Insurers typically view younger drivers as possessing a higher risk as they have less experience of driving. As a result, drivers between the age of 17-25 often get quoted the highest price for their insurance.
However, it is not as simple as the older you get the cheaper insurance becomes as insurers also view elderly drivers as high-risk individuals.
Where you live and where you keep your car will also affect your insurance price. For example, if you live in an area with high crime rates, you are considered more of a risk for insurers due to the increased chance of vandalism, theft and damage to your vehicle.
Keeping your car in a more secure location, such as in a garage instead of on the street, will also affect your insurance price.
When you get a quote, insurers will also use your driving history and details such as your claims record to assess the level of risk you pose.
As well as checking your experience level, insurers are also interested in any driving convictions you may have had, such as speeding penalties or ones for dangerous driving. If you have a low level of experience or have had driving convictions, you are considered to be a high-risk driver who is more likely to make a claim.
Insurers are also interested in your no-claims history as the more you have claimed in the past, the more of a risk you are considered to be.
Insurers are also interested in your job, as this may have an effect on how often you are driving your car and the distances you cover in it. For example, if you commute long distances from your home to work you are considered to be of higher risk due to the amount of time you spend on the road.
When it comes to your job, make sure you check the details of your quote to see exactly which journeys the insurer is offering to cover you for. If you are using your car as part of your job, you will also need to get business car insurance as standard policies only cover you for commuting and social use.
Type of car
The value and performance of your car will also be considered in your insurance quote. In terms of value, the more expensive your car, the pricier it will be for an insurance company to pay out on any repairs should you put in a claim.
This issue, and the fact that these cars tend to be more desirable and more likely to be broken into or stolen, means that more expensive cars will generally result in a higher insurance premium.
Type of insurance
Insurers don’t just offer one single type of insurance and the policy you select will have an impact on your quoted price. Different levels such as “Third Party”, “Third Party, Fire and Theft” and “Fully Comprehensive Cover” offer varying levels of cover with varying prices according to the type you go for. Check out our guide on third party car insurance to find out more about each of these options.
Also, if you’d like to find out more information about all things motor insurance, have a browse through the driving segment of our blog.