Car insurance prices can be confusing. Here’s how they’re calculated in the UK and why costs vary from driver to driver.
Car insurance prices are based on risk. Insurers look at how likely you are to make a claim, and how expensive that claim could be.
When insurers calculate the cost of your car insurance, they assess many different factors, including your age, where you live, your claims history, your driving experience, your occupation, your car, and much more.
Younger and more unexperienced drivers usually pay more. This is because statistically, they're more likely to be involved in accidents, and their claims tend to cost more.
The type of car you drive also matters. More powerful, expensive, and desirable cars cost more to insure. Your postcode matters too, because accident and theft risk varies by area.
Your insurance price is also affected by things you control. This could be your no-claims bonus, how many penalty points are on your licence, the excess you choose, and the type of cover you opt for.
To see how these factors affect you, compare car insurance quotes at Confused.com.
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