What affects the price of your car insurance?
When we set the price of your car insurance, we analyse hundreds of factors, ranging from how many claims are being made, your own details and experience, and what's happening throughout the constantly changing world that we live in.
How you affect the price of your car insurance
The car you're insuring
Factors like the make, model, age, fuel type, value, transmission and engine size of the car all influence the price of car insurance. In addition to this, if you’ve owned your car for longer, you’ll be more used to driving it, which may result in a lower price.
The town or city you live in
We take into account the frequency of accidents, the cost of repairs, theft rates and claims for injuries around your local area. Fewer claims or lower costs in your area could reduce the cost of insuring vehicles.
No Claims Discount
As recognition for showing us that you’re a safe driver, you’ll receive a lower price for each year of claim-free driving.
Your previous claims
The price we quote you will be affected by any accidents you’ve had or claims you’ve made during the last five years.
Previous driving convictions
Our data tells us that those with a driving conviction are more likely to claim, which can affect the price. This is why we take driving convictions into account when we calculate the cost of insurance.
Your driving patterns
The fewer miles you drive, the less likely you are to claim due to the short period you spend on the road. The nature of your journeys can also affect the price, such as whether you drive for business, commuting or social.
Drivers of the car
We look at all kinds of driver details when setting the price, such as age and type of licence. For example, on a provisional licence, the driver is fully supervised. But when they move to a full licence, they’re no longer supervised and tend to drive significantly more miles.
How the world around you affects the price of your car insurance
Parts and repair costs
Repairs and car parts generally become more costly each year. And this is taken into account when setting insurance prices.
Insurance Premium Tax (IPT)
IPT for car insurance increased by 6% over the last decade and is now 12%. Such increases carry through to customer prices.
Fraud
Fraud adds approximately £50 to every premium, and if false or inaccurate details are provided, it can result in the policy being invalid and claims not being paid. We’re always looking at new ways to combat this in order to keep prices down for honest customers.
We're here to help every step of the way
If you’ve got a question about your policy, you might find the answer you’re looking for on our Help & support page.