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Car insurance calculator

Car insurance calculator

The last few years have been increasingly expensive for car drivers, with insurance premiums steadily rising. If you’re wondering how much does car insurance cost, our car insurance calculator comparison tool can help. Find out how much you should be paying for your car insurance. Here's how to use it. 

Daniel Hutson
From the Motor team
minute read
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Posted 20 JULY 2020

What is the Compare the Market car insurance calculator?

Our calculator is a comparison tool that takes you through the process of getting a quote, which will then tell you how much your car insurance can cost, so you can find the one that’s most suited to your needs, while getting an accurate figure.  
When you click through to our comparison tool, you can answer more detailed questions about your vehicle, vehicle usage, your personal details and the type of policy you want, so you'll end up with a choice of quotes tailored to you and your car. We'll quickly find you quotes from our wide range of insurance providers, saving you the time and effort. 

Car insurance calculator

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How could our car insurance calculator help you save money? 

You can use our comparison tool to answer questions on the following factors that could affect the overall price of your car insurance premium:

  • The type of car you drive – if you're buying a new car, you can use the calculator to find out how the insurance premiums might change, from one model you’re considering to the next. The value of the car engine size and even desirability are all factors that are taken into account when calculating your premium
  • Your car's security – you can save on your insurance premiums if you improve your car's security. Using the calculator, you'll be asked about any security features, and will be able to compare cost against the potential savings, if you have an industry-approved alarm or immobiliser fitted. You can then decide if making these improvements are worth it 
  • The level of cover – third party cover isn't necessarily always the cheapest level of cover, as it's dependant on individual circumstances. Use the calculator to check the differences between third party cover, third party fire and theft, and fully comprehensive car insurance to see how they affect the end price of your premium
  • Your voluntary excess – you can also use the calculator to adjust your voluntary excess. If you choose a higher excess, it will likely reduce your premium, so the calculator can help you work out which level of excess suits you the most. Just remember, in the event of a claim, you'll 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 how much your premium will cost:

  • Your age - car insurance for young drivers is by far, the most expensive. That’s because drivers under the age of 25 are statistically more likely to have a collision, with one in four (23%) of 18-24-year-olds crashing within the first two years of passing their driving test. More accidents result in more claims, so insurance providers have to offset this cost by raising premiums for young drivers. On the other hand, if you’re over 50, the assumption is that you have more driving experience, so your premiums are likely to be lower if your driving history matches.
  • Your car - the type of car you drive is also a deciding factor when calculating the cost of car insurance. Generally, more expensive and powerful cars will cost more to insure, with repairs often more expensive. Any modifications you make to your car, such as alloy wheels or a new stereo system, can raise the cost of your premium, too.
  • Where you live - the risks that insurance providers look at include the possibility of your car being stolen or damaged, so they’ll consider where you live and where you keep your car overnight. They’ll look at the local crime rate, whether the area is urban or rural, and the road accident statistics for that area. Keeping your car parked overnight on a private driveway, or in a locked garage, reduces the risk of it being stolen or vandalised, and may help to cut the cost of your premium.
  • Insurance Premium Tax - 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 12%.

How much does car insurance cost?  

The cost of car insurance is calculated using a wide variety of factors. One of the best places to look is by using our car insurance calculator. Based on Compare the Market customer data, here’s what you can expect to pay, on average, for the following types of cover. 
When you shop around with Compare the Market… 

Average cost of a fully comprehensive car insurance policy 
Average cost of a third-party fire and theft car insurance policy 
Average cost of a third-party car insurance policy 

**50% of people could achieve a quote of £615.00 per year for their fully comprehensive car insurance based on Compare the Market data in May 2020
***50% of people could achieve a quote of £933.00 per year for their third party fire and theft car insurance based on Compare the Market data in May 2020
****50% of people could achieve a quote of £1,510.00 per year for their third party car insurance based on Compare the Market data in May 2020

While those are the three standard car insurance types, you may also want to consider a black box policy, also known as telematics. This is more popular with younger drivers, who usually face more expensive car insurance, but can potentially lower the cost by proving they are a safe driver. An average telematics car insurance policy costs £1,274.30*****. 

*****The average telematics car insurance premium between 1 March 2020 and 1 June 2020 was £1,274.30, according to Compare the Market data.  
The cost of your car insurance is calculated by insurance providers assessing the level of risk you pose to them. For example, if you’re young and have minimal driving experience, you’ll typically find that your car insurance costs more than for someone who has been driving for decades. You’ll also find that those who have a clean driving record, with no previous accidents and a lengthy no claims bonus, will normally get cheaper car insurance. 
Car insurance providers are no longer allowed to factor gender into their quotes. Since the European Court of Justice’s gender ruling in December 2012, men and women are legally required to be treated equally when calculating the cost of car insurance. 

Things which can affect the cost of your car insurance include: 

  • Your age 
  • The car’s value 
  • The type of car 
  • Your no claims bonus 
  • Any previous driving convictions 
  • Your annual mileage 
  • Where you keep the car 
  • What you use the car for 
  • Your job 

How can I cut the cost of my car insurance?

  • Reduce your annual mileage - statistically, the more you drive, the more likely you are to have an accident. Limiting your annual mileage will reduce your risk and that could help lower your premium
  • Drive well - a whole year of claim-free driving will earn you a no claims discount which could help reduce the cost of your car insurance. Each year you’re driving without making a claim, the greater the potential discount could be. Avoid acquiring points on your licence, whether that’s through speeding or using your phone whilst driving, as this can result in your premiums rising.
  • Use our car insurance calculator - by customising your search with our car insurance calculator, you'll be able to see if you can save money on your premium.

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