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Car insurance cost factors

Young, single adults who have only just passed their driving test tend to be particularly heavily penalised here, especially if they are male. There are two significant reasons for this. The first is that people in this age group and demographic are, so we are told, statistically more likely to be involved in an accident. This immediately worries most insurers – they’re already thinking about the risk involved in insuring you if you are in this group.

The other problem is that young people usually have less of a driving history. This means that they are unlikely to benefit from an extensive no claims discount. As a result, individuals in this demographic may face considerably higher insurance premiums.

But what about your address? Surely that shouldn’t have an impact on how much you end up paying? It would be nice if that were the case, but it’s not.

Insurers have access to information about particular addresses. If there’s a high rate of vehicle crime in the area where you live then you could be heading for a higher insurance premium. You may, however, be fortunate enough to live in a low-risk postcode, in which case you might receive a discounted quote as a result.

Then we come to the car. Some cars cost more to insure than others. That’s because of a combination of factors, which include average repair costs, the cost of replacing the car (in case its written off) and how frequently drivers of that car are involved in accidents.

So, if you’re a young person driving an expensive sports car, then don’t expect to receive cheap car insurance.

Car Insurance

Want to know what factors are important when it comes to choosing car insurance? Our complete set of articles can point you in the right direction:

Car insurance explained
Third party insurance
Third party fire and theft
Fully comprehensive cover
Comparing car insurance deals
The cost of car insurance
Cost factors
Car insurance costs: your car
Driver history
Car insurance excess levels
Named drivers
Driving abroad