7 Factors That Affect The Cost of Car Insurance

7 Factors That Affect The Cost of Car Insurance: A New Driver's Guide

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Millions of people purchase car insurance without knowing why they have been quoted the price they've received. It is important for you as a new driver to know what affects the cost of your car insurance to make sure you know what you need to or can do to keep your costs down.

Here are the key variables insurance companies use to determine the cost of car insurance and the price you'll pay (in no particular order):


1. Your years of experience

How long you have held a full driving licence affects the cost of car insurance, simply because less experienced drivers are more likely to be involved in a collision and make a claim.

Top Tip: You can gain more experience and prove it to your insurance company by taking a Pass Plus Course or an Advanced Driving qualification from the Institute of Advanced Motorists

2. Engine Size

The larger an engine your car has, the higher a cost your insurance will be. Sometimes the difference between a 1.9 and a 1.6 can be over £1,000. The higher the engine size, the most likely statistically you are to have an accident. Especially as a new driver.

Top Tip: Hold out on the car you've always wanted for at least a year and get yourself a 1.4-litre engine (or smaller).

Your bank balance will thank you for it.

3. Where You Live

If you live in an area with a high rate of car-related crime or insurance claims you'll be hit with a higher insurance quote. For the insurance company, they see you as more of a risk if you live in an area where your car is more likely to be stolen, broken in to or vandalised.

Top Tip: It would be a stretch too far if we were to advise you to move away just to reduce your car insurance cost, however, if you are a student living in term time in an area with a higher crime rate than at home, you may want to consider leaving your car at home.

4. Age

The younger you are, the more of a risk you are. Statistically, you're much more likely to be involved in an accident if you are 18 than if you are 25.

Top Tip: Unfortunately there's nothing you can do to tackle this particular variable, other than to be a safe and considerate driver so young people in years to come don't have to pay out as much as you did.

5. Stealability of your car

This variable is assessed on how prone to theft your car is. So this depends on the type of security your car has and how many are stolen or broken into of that type.

Top Tip: Look at investing in additional security measures for your car. Ring insurance companies up to see what they recommend and how much this will affect the cost of your car insurance.

6. Profession

Insurance companies categorise people into professions. The most expensive professions to be in car insurance-wise include footballers, delivery drivers and travelling salespeople.

Top Tip: Do not, under any circumstances lie or stretch the truth about what your profession is. Inaccurate information when found out will make your insurance void.

7. Car Safety Features

The more safety features your car has (particularly for fully comprehensive insurance) the cheaper your insurance will be.

An increased number of safety features makes you less of a risk to the insurance company.

Top Tip: Consider carefully what car you get with regards to safety features. This not only will save you money but could potentially save your life.

Organising your car insurance

We all need a little help every so often to organise all our car documents, especially if you switch provider regularly! That help is even better when it's FREE!

We created the My Driving Pal App as a FREE download to help all drivers to manage their car and personal safety by:

  • Saving all documents related to insurance, tax, MOT, servicing etc., with reminders;
  • Offering a  fully searchable advice centre (with English voiceover) that covers everything from tyre safety, motorway driving, filling up with fuel and more!
  • A co-driver in a road collision - the app guides you through what steps you should take. You can even take photos at the scene and store them safely within the app!
  • A section on penalty points - and how to avoid getting them!
  • An MOT checklist;
  • Tips for buying insurance
  • Taking part in our quiz to test your driving knowledge!

Available on iOS and Android, just click on the image and download it today!

reduce the cost of car insurance within the app


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