The cost of your car insurance will depend on a number of risk factors. As a general rule of thumb, the higher the level of risk, the higher the cost will be.
Younger drivers are often considered by insurers to be a higher risk due to their limited driving experience. Older and more experienced drivers may receive lower premiums for their car insurance.
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 – for example, it is considered a lot safer to park your car on the drive or in a garage, rather than on the street.
It is also important to let your insurer know if you change addresses, because your address (and the overnight location of the vehicle) will be factored into the cost of your insurance policy. 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 by your insurance policy.
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.
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.
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.