What Affects Your Car Insurance Premium

When you buy car insurance, one of the first things you'll notice is that prices can vary a lot. You might wonder why your quote is higher than someone else's — even if your cars look the same.

That's because insurers look at many things when working out your premium. In this guide, we'll explain these factors in simple terms so you can understand what affects your price and what (if anything) you can do about it.

👉 Looking for a fair quote? Get car insurance that works for you, even if you have previous claims or convictions.

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1. Your Age and Driving Experience

Insurers use statistics to work out risk. Drivers under 25 are more likely to be involved in accidents, so they often pay higher premiums. The same applies to people who are newly licensed — regardless of their age.

More driving experience usually means a lower risk, which can help reduce your premium over time.

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2. Your Driving History

Speeding, drink-driving, or careless driving convictions will almost always increase your premium. If you've had a driving ban or picked up points, insurers will see you as a higher risk. Even if you've made a claim that wasn't your fault, it can still impact your price.

👉 If this applies to you, we specialise in helping to find affordable insurance in these situations. Visit our Convicted Driver Insurance page to learn more.

👉 You can also read about penalty points and how they work on GOV.UK.

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3. Where You Live

Your postcode has a big effect on what you'll pay. If you live in a busy city or an area with high levels of car theft or accidents, your premium may be higher.

On the other hand, people in rural or quieter areas often pay less — simply because there's less risk on the road.

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4. The Car You Drive

Some cars cost more to fix or replace, which means they're more expensive to insure. Fast cars, modified vehicles, or those in high insurance groups will often bring higher prices.

Cars with smaller engines and no modifications are usually cheaper to cover.

👉 Find out more about car insurance groups and how they work from MoneySuperMarket.

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5. How You Use the Car

Do you drive to work every day? Use your car for business? Or just for weekend shopping trips?

The more you drive — and the further you travel — the more chance there is of something going wrong. That's why insurers ask how and when you use your vehicle. Using your car for business or commuting usually means a higher premium.

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6. Your No-Claims Bonus (NCB)

Every year you go without making a claim, you build up your no-claims bonus. The more years you have, the bigger the discount.

Even one claim can reduce this bonus — so it's something which may be worth protecting if you can.

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7. The Type of Cover You Choose

There are different levels of cover:

• Third Party – the minimum legal requirement.
• Third Party, Fire & Theft – includes fire and theft cover too.
• Comprehensive – covers damage to your own car as well.

It's a myth that Third Party is always cheaper. Comprehensive insurance may be a better value depending on your situation and your car.

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8. Your Employment Status

Your job and employment status can also affect how much you pay for car insurance. Insurers look at your occupation to help judge risk —some jobs are linked to higher chances of making a claim.

For example:

• People who drive as part of their job, like delivery drivers, often pay more.
• Office workers and people who work from home may pay less, as they're on the road less often.
• Students, retired people, and those who are unemployed may also see different prices.

👉 Not sure how to list your job correctly? Get in touch with us — we're happy to help.

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How to Keep Your Premium Down

You can't change your age or where you live — but there are still ways to help reduce your car insurance costs:

• Be honest and accurate with your details.
• Drive carefully to build your no-claims bonus over time.

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Final Thoughts

Lots of things affect your car insurance premium — from your postcode to your driving history. If you've had past claims, convictions, or a low no-claims bonus, don't worry. You're not alone, and help is available.

At Got You Covered, we specialise in helping drivers just like you. Whether you've had points on your licence or trouble getting cover elsewhere, we're here to help.

👉 Get a quote now or speak to our friendly team for personal support.

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