Why is my car insurance policy so expensive?

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Written by Michael Foote , founder of Quote Goat, with over 13 years experience working in the finance, insurance and currency sectors.
04/09/2020

Many car owners in the UK feel as though they are paying too much for their car insurance. Even though car insurance premiums have fallen slightly in recent years, these drops have not matched up with other factors, leaving drivers feeling frustrated with policies that they simply deem too expensive.

An important way for drivers to help find cheaper insurance costs is to better understand how insurance companies calculate their quotes and how they deem a driver as “high-risk”.

There are a number of factors that can make insurance providers consider you as “high-risk”, including your age, occupation, address and the car you drive. By studying the ways in which your risk is calculated you can consider your options and even make changes, big and small, that can help drive your insurance costs down.

Common reasons for high car insurance costs:

Under the age of 25

Drivers under the age of 25 are considered ‘young drivers’ even if they have a few years worth of driving experience under their belts. This is because drivers under the age of 25 are involved in more accidents than those over the age of 25 – with drivers between the age of 16-19 three times more likely to be involved in a fatal collision than those over the age of 20 – and therefore providing car insurance to young drivers is deemed as higher risk. The insurance industry has tried to help with adopting black box technology, allowing an insurance provider to monitor driving ability and reward safer drivers. Black boxes aren’t for everyone though, so if you would prefer an insurance policy with no black box, read our guide.

Moving from your parent’s policy to your own

A lot of young drivers are added as a named driver on their parent’s policy. Some policies even allow named drivers to build their no-claims discount whilst not being the first name on the insurance policy.  When the time comes for a driver to leave their parent’s insurance policy and start their own policy, drivers can start to see their usual low prices slip away in place of more expensive monthly costs.

You live in a city

Location is a major aspect that influences your car insurance prices. Urban areas have much higher rates of car theft than rural areas, which is reflected in higher prices for city rates compared to being outside the city. If you live in a specific postcode that receives a disproportionate amount of crime, this will also adversely affect your monthly, or annual, costs.

Tip: We have an ever growing range of car insurance guides by city including Manchester, Southampton, London, Liverpool, Leeds, Leicester or Sheffield.

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