Car insurance providers consider ‘risk factors’ when calculating a car insurance premium, including your age, postcode and the number of claims or accidents you’ve had in the past. Insurance providers use this information to calculate the risk you may pose on the road and the likelihood of you making regular claims. However, premiums still vary significantly from one car insurance provider to another.
Younger, more inexperienced drivers are known to cause more accidents. The Association of British Insurers found that although only 12% of drivers are aged between 17 and 24 that age group is still responsible for almost 30% of accidents.
A mature driver with a history of no claims is generally a lower risk to a car insurance provider than a younger driver. A lower premium simply reflects a lower calculated risk.
Statistically speaking, women live longer and are less likely to be involved in a car accident than men. Women therefore pose a lower risk to car insurers and in the past have paid lower premiums accordingly.
However since 2012, due to an anti-discrimination ruling by the European Court of Justice, insurers cannot take a customer’s gender into account when setting their insurance premiums.
There are 50 different car insurance groups - cars in the highest numbered groups tend to be the most expensive as they are seen as the riskiest cars to drive.
Factors they look at include:
Cost of repairs – including time taken to fix the car and the cost of price of replacement parts
Performance – faster acceleration and top speeds increase the likelihood of a claim
Purchase and/ or market value
Security features – cars with car alarm, car immobiliser, glass etching etc. all minimise the risk of theft
Age of car
A car with a more powerful engine, for example, will generally be more expensive to insure. Cars which can accelerate quicker and maintain higher speeds on the road are potentially more at risk of accidents than slower, older cars.
Smaller, fuel-efficient cars tend to be in the lowest Car Insurance Groups such as the Nissan Micra, Volkswagen Up! and the Ford Ka. Bigger or sporty cars will normally be in the higher groups – such as the Range Rover Sport and the Porsche 911.
Being involved in a car accident is always a shock and can be quite upsetting, but having the right insurance can make the whole process much easier and save you added stress and worry.
John Lewis plc is an appointed representative (Financial Conduct Authority number 416011) of Ageas Retail Limited. John Lewis Car Insurance is provided by Ageas Retail Limited (No1324965). Registered office: Ageas House, Hampshire Corporate Park, Templars Way, Eastleigh, Hampshire, SO53 3YA. Ageas Retail Limited is authorised and regulated by the Financial Conduct Authority (number 312468). Ageas Retail Limited is a sister company of Ageas Insurance Limited.
John Lewis Finance and John Lewis Insurance are trading names of John Lewis plc. Registered office: 171 Victoria Street, London SW1E 5NN. Registered in England (Registered Company Number 233462). John Lewis plc is an appointed representative of a panel of carefully chosen partners to offer a full range of insurance products and services via John Lewis Finance (Financial Conduct Authority number 416011).