Car Insurance: How Much Should I Be Paying?

How much should I pay for car insurance?

If you own a car you’re going to have to pay for car insurance (fleet insurance if you’re a business), there’s no avoiding it! But exactly how much should you be paying? That may sound impossible to predict, but there are some constant factors that affect the cost of every premium.

Companies such as are in a position to state what the average premium price is. At the end of 2017 they stated that the average cost of comprehensive cover has actually fallen in comparison with 2016 from £582 down to £574, It then fell again in 2018 by 6% (£54). So what are the risk factors (the probability that you will make a claim) that can make your insurance go up or down?


How Much Will My Car Insurance Be? Depends on Your Car

The make, model, age, security, value and size of your vehicle all have an impact on how much you pay.

If you’ve purchased a sports car, then your insurance is likely to be increased. Statistics show that they’re more likely to be involved in accidents, making them a higher risk car. Also, if you own a rare car, repairs could be longer and more costly, making them more difficult to source.

Protect Yourself From Expensive Repairs

The insurance industry assesses all vehicles and uses 50 groups to set pricing levels for each car. Cheapest vehicles are placed into group 1, so have a look in there if you want to keep your motor prices low.


 How Much Will My Car Insurance Be? Depends on You 

The combination of your age and driving experience are vital in determining how much your insurance will cost you. Statistically, younger drivers are involved in more accidents so the premiums are higher. 

Young drivers, however, do have the option of lowering their insurance by installing a black box (also known as telematics) device which monitors daily driving. If you’re driving safely than your insurance premiums can fall. The older you are, and the more experience you have means you have lower risks and your insurance premiums will fall, that’s only if you’ve got acquired no claims. 

Your age eventually works against you over the age of 70, as reaction times fall, premiums may start to rise again.

Although due to EU law gender is no longer a factor, your job may be. Some vocations are regarded as higher risk and come with penalties such as journalists, actors and funfair employees.

It's also important to specify how you use your vehicle as if it's used for more than commuting, including business use, this is an extra which needs to be paid for.


How Much Will My Car Insurance Be? Depends on Your History

Driving history can also work very much in your favour. If you’ve built up a no claims bonus (NCB), which is based on the accumulative years you’ve not built up a claim, you’ll be offered a discount. 

If a driver is not at fault their no claims bonus is usually protected (though this is not always the case!).


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