Top 10 things that affects your car insurance quote

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There are many factors which affect the quote you will receive for car insurance and if you want to get the best quote, you need to know what these factors are. You will be able to get cheaper car insurance if you understand how insurance companies work out quotes based on the information you provide them and the criteria that contribute to the final cost of car insurance premium.

So here’s a list of the factors which influence car insurance:

#1 - Will you park your car in a garage, driveway or on the streets?

Keeping your car in a garage can lower your premiums significantly because it is considered safer. Think about it yourself - if you park your car on the streets, it is more likely to be stolen or broken into than it would be in a garage. So basically, this is how it works out - parking on the streets attracts a higher premium than parking in a driveway, and parking in a driveway costs more than parking in a garage.

#2 - Which insurance group does your car belong to?

Before jumping heads first into a car purchase, it is good to know what insurance group the car belongs to. Insurance groups start from 1 to 50, with 1 being the cheapest group of all. Therefore, if you have a car with an insurance group of 3, you will be paying less on your premiums than a car belonging to an insurance group of 15.

#3 - How many miles will you do in a year?

People take insurance to protect them from accidents or thefts. But what is the likelihood of somebody who use her car just to go to the supermarket to be involved in an accident compared to somebody who goes all over the place from Manchester to London at least 3 times a week and rest of the UK at other times? Easy answer there! So the more you travel, the more likely you are to be involved in accidents (whether it's your fault or not!). As a result, insurance companies will give you cheaper car insurance if you do less miles in a year.

#4 - Do you have an engine immobiliser or alarm fitted in your car?

Having an engine immobiliser or alarm fitted in your car means more security and less chance of your car being stolen. Insurance companies love when your car presents a lower risk to them and they will reduce your premiums because of this.

#5 - Are you married or single?

Believe it or not but your marital status can affect what you pay for your car insurance. If you're married, you will pay less than if you are single. Why? Because statistics shows that married people are more settled down and more responsible and scientific research has shown that single people tend to be more careless when driving and are more involved in car accidents.

#6 - What's your occupation - Delivery boy or Accountant?

Insurance is all about risks and the type of job you do is a risk factor too. If you are an accountant, you are more likely to stay at your desk all day which means you are a low-risk type as you would not be using your car that much. However if you are a delivery boy instead, your actual job would involve you using your car to do deliveries which would present a higher risk to insurance companies. Therefore you would pay more on your insurance policy.

#7 - Comprehensive, Third Party, Fire and Theft or Third Party only?

As the name suggest, Third Party Only (TP) covers any damage you do to another vehicle and NOT your own, which is why this type of insurance is the cheapest of all. It is most appropriate if you have an old car. However if you want to protect your car against fire and theft as well, you need to take Third Party, Fire and Theft (TPFT) insurance which will cost more than Third Party only. On the other hand, if you want your insurance to cover everything about your car, then you need to go for Comprehensive cover. The latter is the most expensive type of insurance as it covers for all damages to your car and others. So if you bump into the wall while reversing, you will be able to get it repaired through your insurance company with the comprehensive cover.

#8 - Are you a new driver without any no claims bonus?

If you have just passed your driving test and are looking for cheap car insurance, chances are that you will get really high quotes. But if you take the Pass-Plus Scheme, you can get upto 35% discount on your premiums. Note that there are no tests for Pass Plus Scheme! It's only a few more lessons – driving on the motorway, countryside, different weather conditions and that's it. Most new drivers pay around £3000 for their car insurance but if you take the Pass Plus, you make at most a saving of £1050 on the premium. It’s worth the hassle, don't you think?

#9 - Do you have another car registered at the same address?

Some insurance companies like Churchill or DirectLine will give you a really good discount if you insure a second car at the same address with them. There are people who have received the equivalent of 4 years no claims discount for insuring a second vehicle with the same insurance company. Take my word for it, it's a massive saving!

#10 - Which area do you live in?

Depending on the area you live in (and assuming the car will be kept at the same address), your car insurance can either increase or decrease. Areas with higher crime rates are considered more risky for insurance companies since the percentage of claims is much higher and the chances of robbery are greater. Due to these concerns, you will be quoted a higher premium. Nevertheless, if you live in a quiet and calm neighbourhood, you can expect lower premiums though.

Other factors which also affect your car insurance quote are your age (25's and over usually get cheaper premiums), driving offences (the less driving violations, the better), years of no claims (the more no claims bonus, the less you're going to pay), number of years you're been driving (this shows how much experience you have as a driver) and last but not least what you are going to use your car for (eg social, business or work purposes).

gices
gices Published 22 Dec 2007

Driver SOS (UK)

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1 Comment

anonymous_2 23 Sep 2013

I am divorced and have been told that car insurance is higher than for married or even for single driver. Is this correct and if so why?