How much does car insurance cost?

Taking out car insurance can be an expensive business, particularly if you’re a young or new driver that hasn’t had a chance to build up their No Claims Bonus.

The cost of your car insurance will depend on a number of risk factors, and there are lots of different ways of getting insured that will keep costs down. But what are the risk factors considered when calculating the cost of your insurance?

What could affect the cost of your car insurance?

Your personal details

Such as your age or location. For example, if there are a higher level of car accidents or car thefts close to your home, this is likely to increase the cost of your insurance policy.

Insurers will also consider where your car is parked overnight – as a general rule, it is considered a lot safer to park your car on the drive or in a garage, rather than on the street.

Annual mileage

The more miles you drive per year, the more exposed you are to having an accident. Therefore, the higher the declared mileage on your insurance policy, the higher your premium is likely to be.

When obtaining a quote for car insurance, your insurer will usually ask you how the car will be used; for social, domestic and pleasure (SDP) purposes only, for commuting or for business.

Business insurance is typically more expensive because the mileage involved with business use is often much higher. Commuting can also contribute to a higher cost because you are more likely to be driving during rush hour traffic, which brings with it additional risks, including increasing your chances of being involved in an accident.

Car type

A number of factors relating to your car type will also affect your insurance premium. These will include the vehicle’s safety rating, engine size, age of the vehicle, security features and the value of the car.

Your driving history

Insurers will also consider previous accidents and convictions when providing a quotation for your car insurance. For example, if you have made multiple claims on your previous car insurance or you have endorsements (such as penalty points) on your driving licence, you are considered to be at a higher risk of being involved in another accident.

Whilst all of these factors will contribute to the cost of your car insurance policy, every insurer rates drivers differently. Therefore, they may or may not consider the factors listed above when providing you with a quotation.

Will updating my policy details affect the cost of my car insurance?

It is important to let your insurer know if your circumstances change, as this could affect the cost of your car insurance.

For example, your address (and the overnight location of the vehicle) will be factored into the cost of your insurance policy, so you will need to update your insurer with any updates to this address. Equally, if your car is stolen at a permanent address, but that permanent address is not stated on your policy, the theft may not be covered.

Find out more about updating your car insurance policy with Endsleigh.

How can I decrease the cost of my car insurance?

Young drivers or drivers that have recently passed their test will usually pay more for their car insurance due to their limited experience on the road. Once you start to build more experience and No Claims Bonus, you will usually start to see these premium decrease.

As the UK’s No. 1 student insurance provider, we want to keep costs down for young and new drivers, and there are lots of ways to decrease the cost of your car insurance with Endsleigh.

1. Adjust your excesses

If you’re purchasing car insurance for the first time, consider what compulsory and voluntary excesses you may want to apply to the policy – increasing your voluntary excess could help to decrease the overall premium, but you’ll need to make sure it’s at a level you can comfortably afford to pay should you need to make a claim.

2. Student discounts

We also offer a range of benefits on our student car insurance, including optional RAC breakdown cover at discounted student prices.

3. Think about getting a black box

Have you considered black box car insurance as a way of keeping costs down? We’ve partnered with ingenie for black box insurance, which rewards young drivers with regular discounts off their insurance price, just for driving well. 3 times a year they’ll use your driving data to work out if you’ll be getting a discount – up to 21% off for good driving (although your premium could increase for poor driving). You could be earning money back after just 3 months!

Find out more about black box car insurance.

Last updated: 24 April 2020