Car Insurance Factors That Affect Your Price

How Car Insurance Questions Affect Your Price

Factor	Price Change	Explanation
Driver Age	15% - 75% Increase	Younger (18-24) & older (70+) drivers typically have much higher accident risk and claim severity.
Driver Experience	Up to 50% Decrease	Experienced drivers with a clean record earn No Claims Discounts (NCDs).
Postcode	10% - 50% Increase	Higher crime rates & congested areas increase risk.
Car Model & Year	20% - 120% Increase	Performance cars, expensive models, older cars (>15 years) pose higher risk.
Annual Mileage	Up to 20% Increase	Higher mileage suggests wear and tear, potentially increasing risk. More time spent on the road = higher chance of having an accident.
Driving Convictions	50% - 100% Increase	Points and disqualifications significantly raise premiums due to perceived recklessness.
Voluntary Excess	5% - 15% Decrease	Choosing a higher excess lowers premium but requires more out-of-pocket during if you have a claim. Find a balance.
Named Driver (Young / Inexperienced)	20% - 50% Increase	Young or inexperienced driver increases risk of accidents and pushes up price. Young drivers claim more and cause more severe accidents.
Named Driver (Experienced)	Up to 25% Decrease	Experienced driver with a good record reduces accident risk when sharing the driving.
Previous Claims	5% - 100% Increase	Past claims (severity, frequency, fault) impact premiums due to poor insurance history.
Occupation	5% - 30% Increase	Certain occupations are deemed higher risk e.g. long hours, fatigue, night driving, driving/parking in high crime areas or unfamiliar locations.
Marital Status (Married)	Up to 10% Decrease	Statistically, married drivers tend to be less risky, more stable.
Have Children	Up to 15% Increase	Statistical correlation with increased risk. Driver distraction and increased liability for insurer.
Vehicle Value	Up to 20% Increase	Higher value cars cost more to repair or replace in case of accident or write-off claim.
Modifications	Up to 100% Increase (Performance mods), Up to 20% Decrease (Security mods)	Performance modifications can increase risk due to higher speeds or altered handling, while security modifications may reduce risk to a lesser extent.
Dashcam	Up to 10% Decrease	Helps prove fault, reducing claim costs for insurers.
Parked Overnight Location	-5% to +10%	Historically garage or driveway parking is cheaper than street parking but can increase due to garage damage claims (narrow modern garages) and high-tech thefts from driveways. Street parking can now suprisingly be cheaper with some providers.
Car Use	Up to +25%	Social & Commuting, Social Only, and Business Use affect risk levels and premiums accordingly.
Licence Type	Up to 50% Increase	Different licence types (e.g., international, EU) may significantly impact risk and premiums. Perception of inexperience on UK roads.
Licence Years Held	Up to 20% Decrease	Longer-held licences typically indicate more experience and lower risk.
Use of Other Vehicles	Up to 10% Decrease	Regular use of additional vehicles, especially those not insured under the same policy, may reduce the overall exposure to risk, potentially lowering the likelihood of accidents and claims.
Payment Frequency (Monthly)	Up to 15-20% Increase	Monthly payments may include processing fees and interest charges, resulting in higher premiums compared to annual payments.
Declared Cancellation	Up to 50% Increase	Frequent cancellations or non-payment history can indicate higher risk, potentially leading to significantly higher premiums. Insurer forced cancellation could indicate non-declaration or fraudulent behaviour.
Telematics (Black Box)	Up to 20% Decrease	Installing a telematics device that monitors driving behavior can lower premiums by demonstrating safer driving habits through a calculated driving score.

Disclaimer: The data and insights provided are based on publicly available sources and personal research efforts. While every effort has been made to ensure accuracy, please verify with authoritative sources before making any decisions based on this information.