How is car insurance calculated? |

Find out what affects the cost of your premium and shop around for deals with’s car insurance calculator.

If you drive a car, you’ll need auto insurance by law, but that doesn’t mean you have to pay more than you expect. Using an auto insurance calculator can help you compare different quotes, so you can find the coverage you need, at a price that fits your budget.

Reading: How can i calculate my car insurance

how to calculate car insurance

Insurance is all about risk: the more likely you are to have an accident and file a claim, the higher your premium will be. To calculate that risk, insurers take into account a host of factors, including:

your age

If you are young in the eyes of insurers (between 16 and 24 years old), you will always pay more for your insurance. That’s based on risk, which is based on accident data that shows young motorists are more likely to be involved in an accident and file a claim than any other age group. That said, it doesn’t mean you should pay more than you should if you’re a young driver. so take a quick look at our handy guide to cheap car insurance for young drivers.

The other side of the coin is that the older you are, the lower your insurance premium should be, in general.

your address

Where you live and where your car is located will influence the price of your insurance because insurers use crime statistics to decide how much to charge.

If you’re lucky enough to live in an area with low vehicle crime, your insurance premium should be lower than if you lived in a zip code where vehicle theft and crime are high.

your job

The job you do can have a surprising influence on the cost of coverage because some careers are considered riskier than others (in the eyes of insurers). For example, professional athletes pay considerably more for car insurance compared to nurses, magistrates, and directors.

where your vehicle is stored and security

If you park your car on the street, without an immobilizer or lock, you will pay more than someone who leaves theirs locked in a garage.

insurers are thorough and will have a list of approved locks and security measures; if you do, your insurance should be reduced.

Renaultsport Twingo in white with black alloys

your vehicle and your insurance group

Regardless of the type of car you own, its value, convenience, and power will have a huge impact on how much you pay for insurance.

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It costs more to insure a £100,000 premium supercar than a £7,000 low-emission hatchback.

That’s because it will be more powerful and more expensive, which means it will be more expensive to repair or replace after a claim. it’s also more desirable to thieves.

At the same time, insuring an old car may not be as cheap as you think because it’s arguably easier to steal.

Regardless of the car you drive, you’ll have an insurance pool that also influences your insurance costs. the lower the group number your car is in, the less you will have to pay.

cover type

There are different types and levels of car insurance and some cover you in more eventualities than others. the type of policy you choose will affect what you pay. if you decided to add additional features to increase the level of protection, you can expect to pay more than a policy without any additions.

Comprehensive insurance covers you for almost all eventualities and costs more because there are more potential times your insurer could pay out in the event of a claim.

Third party fire and theft cover is the intermediate form of car insurance for UK drivers.

Third-party exclusive coverage is usually cheaper because there are fewer opportunities for you to file a claim.

use and mileage

If you use your car for business as well as social, you’ll pay more than someone who only uses their car for social use.

That’s because you’re more likely to be on the road in heavy traffic than someone driving socially.

Likewise, the higher your annual mileage, the higher your premium, again because you’re on the road longer and therefore more at risk than someone who drives fewer miles.

Volkswagen Scirocco in white


There are two types of excess in car insurance policies: voluntary and mandatory.

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Your mandatory franchise is decided by your insurer and must be paid in the event of a claim.

You and your insurer decide your voluntary excess, essentially it can be as high or as low as you like, but the higher your voluntary excess, the lower your premium, typically.

no claims and a clean license

If you have a clean driver’s license and a no-claims bonus, you’ll pay less for your insurance than someone who has filed many claims or has convictions.

other drivers or passengers

having other drivers or passengers named on your policy can make your insurance more expensive at times.

duration of your policy

Short-term policies will be more expensive per day than standard 12-month policies.

How do I get cheap car insurance?

At, you can calculate the cost of car insurance by completing our online quote form. The information you provide will generate a range of quotes from the UK’s leading insurers, so you can see who has the cheapest car insurance.

The answers you provide on our online form help determine the quotes you see. changing those answers can affect the price of premiums.

Of course, there are factors you can’t change (like your age or address), but other features (like the level of coverage you choose) can make a big difference. To find out the difference, you can toggle between third party only, third party, fire and theft, and comprehensive coverage.

You can also try different variations on your job title to see how this affects what you pay, for example, teacher vs. principal, or nurse vs. midwife. It goes without saying that what you choose should be an accurate description of your job. if not, you risk invalidating your policy, which means your insurer may refuse to pay.

changing the excess can also influence the cost of car insurance; for example, a higher voluntary deductible may result in a lower overall premium. If you do this, remember that the excess must still be affordable because it must be paid for a claim to continue.

That’s why it’s important to shop around and compare as many prices as possible to make sure you get the cheapest quotes and a policy that suits your needs.

how can our car insurance calculator save you money?

Our quote form can help you compare prices quickly and easily, giving you clarity on what affects the cost of coverage. You can then decide which policy offers you the best value for money based on your needs and your budget.

See also: Additional Driver Car Insurance | Named Driver | Tempcover

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