A simples guide

Why Is Car Insurance Expensive?

We recently reviewed some statistics in January 2016 which outlined that car insurance is now one of the most expensive element towards the annual running of a car for young drivers, even more expensive than fuel*.


Drivers of all age ranges can become victims to the large insurance premiums we are faced with today, but first time drivers are faced with an overwhelming challenge.


Can you reduce your car insurance premium? Perhaps you can. There are many tips and tricks that you can take advantage of to drastically reduce a premium if you haven’t already, which we will get into below.

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What can increase the cost of car insurance?

Your car insurance premium is calculated via algorithms independent to each insurer that evaluate a range of risks. These can range from specifics about the vehicle to information about you that you maybe wouldn’t have expected. Some of these factors include:

- Age
- Driving Experience
- Annual Mileage
- Security & Safety Devices
- Overnight Parking Area
- Occupation

Age and driving experience are huge factors when applying for car insurance, simply because you haven’t yet any the opportunity to prove yourself and develop your no claims bonus.

Another factor that would seem quite obvious to address is the car you are looking to insure. Insurance providers will penalise you for selecting a car with higher acceleration and top speed because this is seen as an increased risk.

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What can I expect to pay for my car insurance?

Whilst the amount you would pay is unique to your circumstances much alike a fingerprint, you can get an idea of what to expect by evaluating some of average premium  statistics we have recorded from comparisons in February 2016*:

- Drivers aged 17-20 - £1.483.42
- Drivers aged 21-24 - £1025.01
- Drivers aged 25-29 - £766.21
- Drivers aged 30-39 - £588.23
- Drivers aged 40-49 - £443.90
- Drivers aged 50-64 - £346.95
- Drivers aged 65- 79 - £276.12
- Drivers aged 80+ - £421.45

How can car insurance premiums be kept down?

There are a variety of ways that you can help reduce your car insurance premium which we will address, some of which can be actioned together and some which serve alternative arrangements for specific age groups.

- Compare: One of the primary ways that you can save money is to compare the market, whilst you may find recommendations from friends and family who have got a great policy with a specific insurer, that doesn’t necessarily mean that it is the best place for you too.

- Insure Early: Our data has shown the potential to access substantial savings by purchasing your insurance premium three weeks before the policy begins. Whilst it is more convenient to do this at the last minute, these savings can be hundreds of pounds.

- Telematics Insurance: Younger drivers may find that they can get a cheaper quote by moving to telematics insurance, which could save you money if you are confident in your driving ability. More than 62% of drivers under 21 found their best quote with us via telematics insurance**.

- The Right Car: We often find that the most popular cars that are compared on our website are rarely the most affordable, models such as the Volkswagen Fox and Fiat 500 would return a more affordable premium than that of a Vauxhall Corsa which is the most popular model among young drivers.

Where can I get the best deal on my car insurance?

As mentioned in the points above, comparing the market is a great way to maximise your savings. You can compare over 100 leading car insurance providers’ right here with us in a single submission, allowing you to access the most affordable quotes at the right level of cover for you. But don’t forget to take advantage of some of the other points we discussed earlier in order to maximise on your savings.

* All average prices and percentages are based on data recorded by comparethemarket.com in February 2016
** All average prices and percentages are based on data recorded by comparethemarket.com in January 2016

Where can I get the best deal on my car insurance?

As mentioned in the points above, comparing the market is a great way to maximise your savings. You can compare over 100 leading car insurance providers’ right here with us in a single submission, allowing you to access the most affordable quotes at the right level of cover for you. But don’t forget to take advantage of some of the other points we discussed earlier in order to maximise on your savings.

* All average prices and percentages are based on data recorded by comparethemarket.com in February 2016
** All average prices and percentages are based on data recorded by comparethemarket.com in January 2016

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