Insurers calculate your car insurance quotes by asking questions that determine your risk factor.
The questions insurers ask you help them to decide how likely you are to make a claim on your car insurance policy.
Insurers tend to ask the same sorts of questions, but how they interpret your answers and how much of a risk you are will never be completely the same. That means prices can vary a lot between providers.
The main areas insurers look at to calculate your quotes are explained below.
All vehicles have a car insurance group rating given to them by the Association of British Insurers (ABI).
Insurance groups run from one to 50 and the lower the group, the lower your insurance will be.
Ratings are based on how risky your car is to drive and how difficult it’d be to replace or repair it. They also consider:
Insurers can change your vehicle’s insurance group based on trends and frequency of accidents they find in their own records.
As younger drivers have less experience on the road, they’re viewed as high risk and more likely to be involved in an accident.
Drivers between the ages of 17 and 24 have higher insurance premiums because of this. Experienced and older drivers tend to have lower premiums.
There’s a tipping point though, as you continue to age premiums rise again.
Even though gender isn’t considered when getting car insurance anymore, quotes for women can still be cheaper than those for men. It’s argued that this isn’t down to gender, just who’s the safer driver and less likely to make a claim.
Insurers still offer ‘women’s car insurance’ by tailoring advertising to target women, but there’s no reason why a man can’t apply for a policy that’s aimed at women.
All insurers want to know your claims history for the last three to five years.
If you have a history of claims, insurers think you're more likely to make a claim in the future and the price of your premium will reflect that.
All named drivers on the policy will be considered when insurers decide how much to charge you.
Low risk drivers - such as someone who’s got 20 years’ driving experience with no claims - may not cost much to add to a policy, if anything at all. In fact, it could reduce the price of the premium.
Adding a driver who’s under 25, has no experience or that has a speeding fine will add to the cost of your insurance as they’re a greater risk.
Not being honest about who the main driver is on your car insurance is a form of fraud called fronting. It will leave you worse off if you’re caught and there are lots of legal ways to reduce the costs of your premiums
Driving to work and driving for work are different. Driving to work is commuting - an option under standard car insurance - but you’ll need business car insurance if you drive for your job