If you own a car, buying car insurance is a necessary evil. Not only is it a legal requirement for driving on UK roads, but it\u2019ll protect you financially if your car is stolen or involved in an accident. Some of the things that affect the cost of car insurance are outside your control \u2013 such as your age. But there are other factors you can control, and plenty of ways to keep costs to a minimum.<\/p>
The average cost for comprehensive car insurance<\/a> across the UK is \u00a3416 per year, based on Association of British Insurers (ABI) data for the first quarter of 2022. That\u2019s a 5% drop on the previous quarter. But it\u2019s still a substantial expense, especially at a time when the overall cost of living is on the rise. And for drivers under 25,<\/a> the cost can leap considerably higher.<\/p> The ABI calculates the average cost of car insurance by using data from several different insurers. It looks at the price consumers pay for their cover, rather than the price they are quoted.<\/p> However, the price you pay as an individual depends on a whole host of factors and may be much higher or lower than average. These include your age, your driving experience, the car you drive, how much repair costs are likely to be and whether you have previously claimed on your insurance.<\/p> Car insurers take a huge number of factors into account when setting car insurance premiums. The car itself will obviously play a big part in this, but some other crucial criteria are your age, where you live and your driving history. Evidence shows that each of these has a substantial impact on the risk of you being involved in an incident. Insurers are all about managing risk, so the higher the risk you pose, the more your insurance will cost.<\/p> Young drivers, under the age of 25, are statistically more likely to be involved in an accident. Data published by the ABI<\/a> shows they are more likely to make a claim and for that claim to be costly, so they tend to pay more.<\/p> After the age of 25, claims frequency and the average size of claims both gradually decrease until drivers are in their early 60s, and premiums fall in line with this. However, it\u2019s not all smooth sailing for older drivers. From the age of around 70, the claims trend reverses, with the average claim size for over-80s similar to that for 18\u201320-year-olds. So you may see your premiums rise in later life.<\/p> Most people would assume that where they live<\/a> would have some bearing on the cost of car insurance. So you might think (and in many cases you\u2019d be right) that those living and driving in big, urban areas will be at higher risk, and pay more, than those that live in the countryside.<\/p> But the link isn\u2019t always as obvious as you might think, and there might be nuances at play. One area of a big city might be more prone to car thefts than another, for example. Meanwhile areas that tend to experience very bad weather conditions \u2013 such as flooding \u2013 might be considered higher risk whether they\u2019re urban or rural.<\/p> The specific location where your car is parked will also make a difference. Parking your car in a locked garage or on a secure driveway is likely to make for lower premiums than parking it on a busy roadside.<\/p> This goes beyond just your years of driving experience. Insurers take 2 key factors into account. First, your history of making claims. The more car insurance claims<\/a> you\u2019ve made in the past, the higher your premiums will generally be. It\u2019s not just about compensating for the cost of claims you\u2019ve already made. If you\u2019ve already made a claim (or claims), insurers will perceive you as more likely to make further claims, and increase your risk level.<\/p> Driving convictions will also tell against you. If you\u2019ve been caught speeding or driving under the influence<\/a>, you need to tell your insurer. If you don\u2019t, you risk invalidating your insurance. The more driving offences you\u2019ve committed, the more you can expect to pay for your car insurance<\/a>.<\/p> Your individual circumstances, your car and the policy you choose will all affect the price you pay for car insurance. We\u2019ve summarised most of the key factors below. If you want to double down on your expertise, check out our in-depth guide on how car insurance premiums are calculated<\/a>.<\/p> To help determine how much you\u2019ll pay for car insurance, insurers will want to know some details about the driver of the vehicle:<\/p>How is the average cost of car insurance calculated?<\/h4>
What are the key things that affect the cost of car insurance?<\/h3>
How does my age affect the cost of car insurance?<\/h4>
How does location affect the cost of car insurance?<\/h4>
How does my driving history affect the cost of car insurance?<\/h4>
What else influences the cost of car insurance?<\/h3>
Driver details<\/h4>
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