If you're driving in the UK and your car insurance is up for renewal, it pays to be clued up on the best car insurance deals. Cheap car insurance is often just a few clicks away, so long as you know where to look!
Using a car insurance calculator can be a great way to compare quotes from competing insurers. In this guide we'll walk you through the factors an insurer takes into account, and how to make sure your car insurance comparison brings up the best deals possible.
How is car insurance calculated?
Car insurance costs are carefully tailored to your specific circumstances. Quotes take into account a number of factors including your driving history, the type of vehicle you own and where you live. They use this information to build a picture of the likelihood they will need to pay out on your policy, and this risk dictates the cost.
Risky factors for insurers include:
- Young Drivers – Under 25's are statistically more likely to make a car insurance claim than older drivers, and also do not have much driving history for an insurer to assess. Therefore, most are judged on a worst possible scenario basis, meaning expensive policies.
- Unusual Vehicles – Cars which are non-standard, either because they are powerful, expensive or modified, are typically more expensive to repair should they be damaged. This increases insurance premiums, as there may be difficulties in getting hold of the parts needed to repair any damages.
- Storage Issues – If you live in an area with a high crime rate, the chance of your car being damaged or stolen much higher. For this reason, Insurers often raise premiums for policy holders who don't have off-street parking or the use of a garage.
How much does car insurance cost?
Car insurance, on average, costs less and less the older you get. There are obviously exceptions where drivers have different driving histories and vehicles, but on the whole you will generally pay less for car insurance as you mature as a driver.
The lowest-priced age group for car insurance is drivers in their 50's. Once you reach your 60's prices can begin to rise again, as crashes in this age group are slightly more common.
According to the Association of British Insurers (ABI), the average cost of car insurance in the UK is £471 per year. This blanket average, however, encapsulates a wide range of policies. A new driver aged 17-21 can generally expect to pay over £1,000 for their car insurance. Likewise, if you're over 50 and have a good driving history, you're unlikely to have to pay more than £300 a year.
How can I cut the cost of my car insurance?
When you're looking for cheap car insurance it's important to note that, as well as your circumstances, how you drive will affect the cost of your insurance.
Insurers offer better premiums for drivers with less annual mileage, so pay attention to how far you travel and don't just jump straight to an arbitrary number.
Driving safely and not making claims also makes you a more desirable customer to insurers. No claims discounts will increase the longer you continue to drive without having any accidents. Conversely, the more points you have on your licence, the greater your premiums will be.
If you believe you’re a safe and low-risk driver, you should consider a telematics or black box car insurance policy, which tracks how you drive and sets your premiums accordingly.
How could calculating car insurance costs save me money?
Using a car insurance calculator could help you to determine which policy to go for. There are many variables to consider, so being able to compare between choices should make the decision easier.
For example, if you're choosing which car to buy, a calculator allows you to compare car insurance prices between the different models on your shortlist. This goes for choosing a level of cover too. You can determine how third party, fire and theft insurance on one model of car weighs up against comprehensive insurance for a different model.
You'll also be able to look into whether additional security features on your car could pay for themselves in insurance premium reductions.
Where can I find a car insurance calculator?
You're in the right place! Follow the link to our form, which you can use to calculate and compare car insurance quotes.