Insurance is all about risk – the greater the risk of a claim being made, the higher the cost. So, when it comes to calculating your premium, insurance providers look at numerous risk factors, such as your claims history, your no claims discount and, of course, the car you drive.
Naturally, insurance providers use other generic statistics to calculate risk. And the statistics show that if you’re in your 50s or 60s, any claims you do make tend to be of a lower value compared to other age brackets.
Where you live is an important factor in determining the cost of your premium. If your home is in a built-up area where there’s a higher risk of an accident, or you live in a part of town where car crime is high, you’ll generally pay more for your insurance.
There’s also one other element that gets added onto the cost of your insurance – and that’s insurance premium tax or IPT. A tax on general insurance premiums, it’s currently charged at 10%, but as of June 2017 it will rise to 12% (so you may notice your insurance goes up).