01 November 2016

9 things that can affect your car insurance premium

We take a look at the top nine factors that can affect your car insurance premium. From what you drive and how far you go to vehicle crime and mods to your car.

Learner driver in car playing music

1. Your age

Age is one of the most significant factors insurers consider when deciding how much your policy will cost. Younger drivers are less experienced and more likely to be involved in an accident.

2. What car you drive

Insurers will take the value of your car, how expensive parts are, how powerful it is and how desirable it is into consideration. Your premium can be affected if you've had any modifications made, however cars with built in safety features like autonomous emergency breaking (AEB) could benefit from better prices.

Cars outside of show room
Car being stolen

3. Where you live

In areas where accidents are common or there are known to be high levels of vehicle crime, premiums are likely to be higher. Your home can also play a role - if you have a drive or garage to store your car then you may pay less.

4. How far you drive

Annual mileage is an important factor - the more you drive the more likely you are to have an accident.

Speedometer at 30mph
No claims discount certificate

5. No claim discount

Not making a claim tends to be a sign you're a safe driver, so your insurer could reward you with a no claim discount, which will be reflected in your price.

6. Previous claims and convictions

When you renew your insurance you'll have to give details of any claims in the last 5 years. Even if they weren't your fault they may still affect your price. Any motoring convictions - like speeding - suggest you might be more likely to make a claim.

Speed camera
Tool box

7. The cost of car repairs

The rising cost of car parts and repairs can have a knock-on-effect on your premium price.

8. How many claims are being made

Thousands of insurance claims are made every year, but if there's a spike for some reason, it can impact on everyone's premium - making them more expensive.

Two cars in an accident
Wallet with money coming out

9. Your excess

If you increase your voluntary excess, your premium may reduce.

Nationwide car insurance is provided by Liverpool Victoria Insurance Company Limited (LV=).

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