Save money with our car insurance calculator

Car insurance is there to protect you by helping to cover your costs should you have an accident. But with the cost rising every year – our latest research shows that the average premium has risen by £47** (that’s 7%) in the past year – wouldn’t it be good if you could find a great-value insurance policy that’s just right for you. That’s where our car insurance calculator  can help.

How to save money with our car insurance calculator

You can use our insurance calculator to work out how the following factors might affect your car insurance premium:

The type of car you drive
If you’re looking to buy a new car, make a selection of cars you like and use the insurance calculator to see how the premium changes depending on the make and model. The car’s value, engine size, and even desirability are all factors that are taken into account when calculating your premium.

Your car’s security
Insurance premiums can be reduced if you improve your car’s security. Use the car insurance calculator to see how much you could save by fitting an industry-approved immobiliser, for example. But you should also check whether the one-off costs of these products outweigh the savings you might make on your insurance.

The level of cover
Don’t assume that third party cover is always the cheapest, as it’s dependent on individual circumstances. Use the calculator to check all the different levels of cover – third party, third party fire and theft, and comprehensive – to see how it affects your premium.

And remember that if you do opt for third party, it will only cover you for injury or damage you cause to another person or their property; it won’t cover damage to your car or any injuries to yourself.

Your voluntary excess
You can also adjust your voluntary excess on the calculator. If you choose a higher excess, it could reduce the cost of your premium. But remember that should you need to make a claim, you will have to pay a compulsory excess in addition to your chosen voluntary excess, so make sure you can afford both.

How is car insurance calculated?

Car insurance is tailored to you, your car and where you live. Risk is the key factor for insurance providers when it comes to working out what you pay.

Your age
Car insurance for young drivers is the most expensive by far. This is because, statistically, that age group has the most accidents –almost a quarter of all 18 to 24 years olds have a crash inside the first two years of driving – and are therefore most likely to make a claim or have a claim made against them. On the other hand, if you’re over 50, the assumption is that you’re a lower risk driver because of all your experience on the road, so your premiums are likely to be lower.

Your car
The type of car you drive has a huge impact on your premiums. As a general rule, more powerful and more expensive cars cost more to insure. And any modifications you make to your car, such as adding alloy wheels or a spoiler, can bump up the cost of your premium too.

Where you live
The risks that insurance providers look at include the likelihood of your car being damaged or stolen. As your home and work are where your car is likely to be parked for the majority of the time, this has to be taken into account. Insurance providers look at the local crime rate and the roads you park on – whether they’re urban or rural – and how many accidents have happened in the area.

If possible, you should keep your car on a private driveway overnight. Parking your car off the road reduces the risk of it being stolen or vandalised, and may cut the cost of your premium.

There’s also one other element that gets added onto the cost of your insurance and that’s insurance premium tax (IPT). It’s currently charged at 10%, but will rise to 12% from June 2017.

How can I cut the cost of my car insurance?

Reduce your annual mileage
The more time you spend driving on the roads, the more likely you are, statistically, to have an accident – and that’s going to increase the cost of your insurance. Limiting the amount of time you’re on the road could reduce your risk and therefore lower your premium.

Your insurance provider will ask you to estimate your mileage for the year. Set this as low as you think is realistic, but be careful not to underestimate as this can make your policy invalid.

Drive well
Good driving can lead to lower premiums. Each year that you drive without a making a claim on your car insurance gives you a year of no claims bonus – and that could give you a discount on your insurance. The more years you drive without making a claim, the greater the discount on your premium could be.

Speeding or incurring points on your licence can mean your premiums go up.

Use our car insurance calculator
Get a new car insurance quote with our car insurance calculator and you could start saving money today.

**Based on comparethemarket.com data from December 2016 to February 2017. 

 

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