26 Oct

What Affects the Price of Car Insurance?

Insurance guides

When it comes to getting car insurance, you want the best price. You might think that shopping around is the best way to find a good price. However, there is only so much that going to different insurers can do. Insurers all have a wide ranging set of criteria that affect the price of car insurance. For many people, being aware of these factors might be a better  way of lowering the price of their insurance than shopping around.

What car you drive

The car you drive affects the price that insurers are going to offer you. If your car is more expensive, it will be more expensive for your insurer to replace it. That means that they will want to charge you more for your insurance in order to make up the cost. Cheaper cars are usually cheaper to insure – as the cost of paying to replace a write off is less to the insurer.

Cars are categorised in ‘insurance groups’. These groupings play a role in calculating your insurance premium. Finally, if you have modified your car, you need to inform the insurer. Modifications might affect the price of your insurance.

Your job title and industry

The insurance industry makes decisions on the price of your car insurance based on what sort of job you have. The industry keeps records of who is likely to claim on their insurance. Different types of industries and job titles are more or less likely to make a claim.

Job titles can affect the price of your car insurance as well. For example, many insurers would offer a lower premium to a ‘chef’ than they would to ‘kitchen staff’. If you have a job that could be given more than one title, it is often worth checking the quotes that those titles receive.

Where you live

Your address can often affect the price of your car insurance. This takes into account several factors. Different areas of the country have different likelihoods of making a claim. This is dependent on the average number of claims in an area, as well as the proportion of claims that may be fraudulent.

Areas that have higher crime rates, more accidents and are busier are also likely to receive higher insurance premiums.

Your Driving

How you drive affects the price of your car insurance. If you drive much further than the average in a year, then there is a higher chance that you will have an accident. As a result, insurers are likely to charge you a higher premium.

Some insurers offer a telematics device as a way to check you are a responsible driver. Often known as a Black Box, these devices offer better prices to drivers, as they can ensure that you are driving responsibly.


Driving History

Your past – particularly your history with insurance – can have a significant affect on the price of your insurance. If you have a history of needing to make claims, this will make insurers less keen to offer you a policy. As a result, they will likely offer higher premiums to make up for this.

If you have points on your licence, a history of suspensions or convictions, these can also make your insurance more expensive. Insurers do not want you to need to make a claim. Any of these factors can make it seem more likely that you will need to.

Choices you make

Insurance policies are not all the same as each other. You can vary the voluntary excess, the mileage, even the number of years of no-claims discount can vary. Taking a higher voluntary excess can get you a lower price on your premium, as insurers will have to pay less in the event of a claim.

If you add on additional or non-standard cover, you will also likely need to pay more. This might include: Legal Assistance, Windscreen Cover, Driving in Europe etc.

One day or one year insurance

The length of Your Policy can change the price you are offered. For lots of drivers, a traditional year long insurance policy is likely to be much more expensive than they would like to pay. If you do not drive regularly, or you only drive a borrowed car, then there is no need to get an expensive insurance policy that covers you for time you do not need.

One day insurance only covers you for the length of time that you actually need to be covered for. This makes your premiums much lower than if you were to take out an unnecessary year long policy.

With GoShorty, you do not have to cover your car for any longer than you need. This could be as little as one day of insurance, or up to 28 days of insurance.

Save yourself money with one day insurance – and only get the cover you really need.