What Are the Main Factors That Influence Car Insurance Quotes?

Not long after passing your driving test, you find out something important about car insurance:

No two quotes are ever the same.

Quotes from different insurers, price options for different policies, quotes for different cars and drivers are all completely different; shopping for car insurance can therefore be a complex and confusing process at the best of times.

Figuring out the main factors that influence car insurance premiums can help you get a good deal, but in most instances, there is not really a great deal you can do to make your insurance cheaper.

All insurers have their own unique policies and criteria when it comes to policy pricing. These are the factors that have the biggest influence on car insurance quotes:

  • Age – Younger drivers will always face the unfortunate prospect of an elevated car insurance bill. Today, motorists between the ages of 18 to 24 can expect to pay at least £1,000 a year. Even then, they will be looking at basic third-party cover at best.
  • Address – Where you live will also play a role in determining how much you pay. For example, if you live in an area where the crime rate is high and road traffic accidents are commonplace, you will inevitably pay more to insure your car.
  • Car Type – Your insurer will take into account the type of car you drive and its value. The more powerful and/or expensive the car, the more it costs to ensure it. Modifications to cars can also drive up insurance premiums. You may need to consult with a car finance company to see what your best options are for your affordability.
  • Occupation – What you do for a living could also work for or against you. Your insurer will want to know whether or not your occupation increases the likelihood of you and your car being involved in an accident for any given reason.
  • Storage Location – Storing a car in a locked garage on your own property is the best way of appealing to insurers. By contrast, storing vehicles out in the open on public roads almost always means paying more for insurance.
  • Mileage – You will be expected to provide an honest disclosure of the mileage you cover on average each year. Motorists who drive longer distances annually are statistically more likely to be involved in RTAs than those who drive infrequently.
  • Driving History – Of course, you can also expect to be asked about your driving history in general. The more accidents and incidents you have been involved in prior to now, the more likely you are to be seen as a liability by the insurer.

As you can see, the average driver does not have much influence over most of the factors above. Insurance policy quotations are based entirely on the level of risk the driver represents to the insurer.

Hence, the more you can present yourself as a low-risk motorist, the higher the likelihood of a competitive quote.

Which is Cheaper to Insure – an Older Car or A New Car?

Contrary to popular belief, there is no simple answer to this question.

In some instances, new cars can be cheaper to ensure as they may have an extensive list of safety features. Elsewhere, an older car might be cheaper to ensure due to its comparatively low value.

This is where shopping around for car finance is essential, as insurers take very different approaches to the new vs. old issue. Enlisting the services of a broker to conduct an extensive market comparison comes highly recommended.

Which Are the Cheapest Cars to Insure in the UK Right Now?

For a long list of reasons, there will always be some cars that are cheaper to insure than others. Quotations will always vary significantly from one provider to the next, again emphasising the importance of shopping around.

But in terms of the official rankings for 2021 – according to MoneySuperMarket – these are the cars that are cheapest to insure right now:

Nissan Qashqai

Combining the benefits of an SUV with those of a hatchback, the Nissan Qashqai is also packed with intelligent safety features. It boasts a spacious interior and plenty of extras for added comfort, though is also much easier to drive than a typical SUV.

Mini Cooper

Iconic in every way, the Mini Cooper seems to tick all the right boxes with UK insurers. It has a fairly small boat and a pretty modest-sized interior, which more than makes up for its compact size with a high-performance engine that packs a real wallop.

Vauxhall Insignia

Unlikely to be the first choice for newly qualified drivers, the Vauxhall Insignia is more business-focused. Combining executive comfort with a comparatively affordable price, the Vauxhall Insignia is also loaded with a long list of essential safety features.

Ford Focus

The Ford Focus has been the ultimate family crowd pleaser for more than two decades. Each time a new version is released, it is just as popular among motorists as it is insurers. A surprisingly capable family run-around, packed with cutting-edge technology and one of Ford’s most fuel-efficient engines to date.

While there is not a great deal most drivers can do to reduce their insurance premiums, it is important to know which key factors drive higher insurance quotes.