Why is car insurance so expensive

Insurance can seem expensive at first glance but it doesn’t have to be that way. When you weigh up the benefits and freedoms that come with getting car insurance, you will quickly see how the costs of insurance are well worth the price. There are many different things that affect your car insurance and so in this article we will dive into some of the things that influence the price and how you can save….

Why is my car insurance so expensive

Your car insurance price will vary depending on many factors, these include your age, car, provider and type of insurance coverage. Your insurance premiums are essentially based on the type of coverage you have and the relevant risk factor details that are specific to you. Your risk factor is essentially how insurance companies evaluate what they should charge you for a premium as this is how they will protect themselves from a loss if they have to pay you out.

If you have a history of previous claims your insurer will view you as more risky to insure and so your premiums will be higher. If you think this doesn’t apply to you read on for some more explanations around why your insurance quote could be high…

Why different insurance types cost different amounts

Insurance is designed to cover you in the event of an accident on the road and is a legal requirement for drivers in the UK. There are different types of coverage which also vary in price…

• Third Party Insurance – Will cover damage to a third-party vehicle when you’re a fault but not your own
• Third Party Fire & Theft – Third party with the additional cover of fire and theft to your vehicle
• Fully Comprehensive cover – Covers your vehicle as well as third-party vehicles in the event you are at fault as well as fire and theft.

From the different levels of coverage you can see each type offers differing value to you as the insured in the event of an accident. As a result you can expect to pay more for greater coverage with basic third-party usually being the cheapest option.

Why is car insurance so expensive for new drivers

If you are a new driver your insurance will usually be high as you have no previous driving history for the insurer to compare. You will also likely be a younger driver which means you’re statistically more likely to be in a crash than an older driver.

How do I save on my insurance?

Here are some tips for first-time drivers on how they can save on their insurance.

• Always compare car insurance quotes from multiple lenders.
• Check insurance quotes for the car you want before you buy it.
• Increase your excess, this can lower your premiums.
• Look into group insurance, group 1 is the lowest, 50 the highest
• Add an older driver to your policy, this will reduce your premiums
• Consider black box or telematic insurance for lower premiums

At Quotezone, helping people find better deals is important to us. We can help you find the best deals on your car insurance with our panel of dedicated UK specialists. Whether you’re looking for third-party, third-party fire and theft, or comprehensive cover, Quotezone has you covered.

This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.