Car insurance calculator 2024

With car insurance premiums regularly hitting record highs, getting the best deal available is more important than ever.

Although your quote will be tailored to your specific profile, an insurance calculator can give you an idea of what to expect before you start comparing car insurance quotes.

Understanding how car insurance is calculated, meanwhile, may help you figure out how you can reduce your own premium.

How does a car insurance calculator work?

Your car insurance quote is as unique as you are. There’s a huge range of factors that go into calculating car insurance, some of which you can change, and some of which you can’t. 

Each of these points will have decades’ worth of data to determine their risk factor. This risk factor then determines the potential cost to the insurance provider, which in turn informs how much you pay for your car insurance.

So when you use a car insurance calculator, it will be pulling in all or some of the following:

Cover details

The car insurance product you choose is one of the ways you control how much your premium will cost, including:

• The level of cover you choose: that’s out of third party, third party, fire and theft, and fully comprehensive car insurance. Third party, or third party, fire and theft, may be cheaper than comprehensive cover, but that’s not always the case
• Any optional extras: adding on extra policies, such as breakdown cover, excess protection, or motor legal protection, can push up the quote you receive from a car insurance calculator
• Your voluntary excess: on top of the compulsory excess, you can choose to pay a voluntary excess when making a claim. The higher this voluntary excess, the cheaper your car insurance premium. However, make sure to choose a voluntary excess you can realistically pay alongside the compulsory excess in the event of a claim
• Annual or monthly payments: as a general rule, it is cheaper to pay for your car insurance upfront, rather than splitting it into monthly payments

Personal information

A large part of your premium is calculated using your personal information. This includes:

• Your age: broadly speaking, the older you are, the cheaper your car insurance will be. However, over a certain age, you may find your premiums start to increase. This is because younger drivers, typically between 18 and 25, are statistically more likely to make a claim than an older driver
• Your gender: while car insurance providers legally cannot discriminate based on gender, studies show that women often still receive cheaper quotes then men. This is often because, on average, women tend to have fewer driving convictions than men, and drive cars that are statistically safer
• Your occupation: some jobs are perceived as more risky than others. For example, a social worker visiting different households may have a higher premium, as they are frequently on the road, and therefore have a higher chance of getting into an accident
• Your location: there is extensive data on the likelihood of getting into an accident, and the size of the related claim, for every area in the country. That’s why your address will influence the cost of your premium. For example, London, which is the most densely populated area of the country, usually has the most expensive premiums
• Your relationship status: if you are married, or cohabiting with a long-term partner, you may get a cheaper quote than someone who is single. That’s because the data shows single people make more expensive claims than those in a relationship

Your driving history

Alongside your personal information, your driving history is one of the key factors in pricing up your car insurance:

• How many years you’ve been driving: the longer you’ve been driving, and the more responsible you’ve shown yourself to be as a driver, the cheaper your car insurance will be
• Your no-claims bonus: tied to how many years you’ve been driving is your no-claims discount. Every year you fail to make a claim on your car insurance, you can expect to receive a discount the next time you renew or take out a new policy
• Whether you’ve made a claim in the past: even if you make a no-fault claim, you can still expect your car insurance premiums to increase next time you take out a policy
• Any points on your licence: if you have any points on your licence, this will push up the cost of your car insurance. And the more points you have, the more your premium will be affected
• Driving convictions: as with points on your licence, any driving convictions will cause the price of your car insurance to increase
• Annual mileage: when using a car insurance calculator, you may be asked to give your estimated annual mileage. This is how many miles you think you drive in a year. The higher that number is, the more your insurance will cost, as you stand a greater chance of getting into an accident

Your car details

The car you are looking to insure can have a significant impact on the premium you are quoted:

• Car insurance group: the make and model of your car will determine what car insurance group it is in. Smaller cars with smaller engines are usually in the ‘lower’ groups. And the lower the group number, the cheaper your premium will be. This is all based on historical data for each car make and model, including statistics around how often claims are made, and the costs of repairs
• Modifications: if you have made any modifications to your vehicle, such as a custom exhaust or tinted windows, the cost of your car insurance could go up. However, some modifications, such as collision warning technology, may bring the cost down
• Where you park your car overnight: your car insurance will be cheaper if you park your car in a private garage or driveway instead of on the street. This is because it is less likely to be stolen or vandalised
• Multi-car insurance: if you insure multiple cars on the same policy, you may be able to receive a discount when compared to insuring those vehicles separately

External factors

Unfortunately, there are some factors that go into calculating car insurance that are completely out of your control:

• Inflationary pressures: as inflation pushes the price of repairs, materials, labour and energy higher, insurance providers pass these costs onto consumers
• The cost of claims: if there are a large number of expensive claims in a one-year period, that’ll push up the cost of car insurance for everyone overall, even if you are a safe driver
• Fraud: the cost of fraudulent car insurance claims can push the price of premiums up for everyone else
• Insurance premium tax (IPT): part of your car insurance premium is tax. The standard rate of IPT is currently 12%
• Uninsured drivers: the Association of British Insurers (ABI) estimates that 4% of premiums go towards the costs associated with uninsured drivers

How can I get cheaper car insurance?

While not everything is in your control when it comes to calculating your car insurance quote, there are ways you can make it cheaper:

Lower your mileage

It might not be an option for everyone, but reducing your annual mileage can cut the cost of your car insurance. And if you drive less than the average UK motorist, you may be eligible for cheaper low-mileage car insurance.

Drive safely

Making sure you avoid getting points on your licence, speeding tickets and other driving convictions is not only sensible, it’ll prevent your premium rising unnecessarily. 

Get black box insurance

With black box insurance, also known as telematics insurance, a device is installed in your car that’ll track your driving habits. This can prove to your insurer you are a safe driver, and may help reduce your future premiums. This is especially useful for younger drivers with a limited driving history.

Build up your no-claims bonus

You can receive a no-claims discount for every year you avoid making a claim. This may mean in some situations weighing up the cost of paying for a repair yourself, versus how much it’ll cost you to lose your no-claims bonus.

Check the car insurance group before buying

When it comes to buying a new car, you can take its car insurance group into consideration. Getting a small car from a lower group will be cheaper insurance-wise than a bigger car with a bigger engine.

Avoid over-insuring your vehicle

Only take out the level of cover you feel you need. And this doesn’t just include picking between third party, third party, fire and theft, and comprehensive cover. It also means seriously considering whether you need breakdown cover or motor legal protection as an add-on.

Consider multi-car insurance

If your household has more than one car, opting for a multi-car insurance policy instead of insuring each vehicle individually can work out the cheaper option.

Add a named driver

If you are a less-experienced driver, you may be able to add someone with more miles under their belt, such as a partner or parent, as a named driver. This can potentially reduce the price of your premium, as the insurance provider will see that you, the more inexperienced driver, won’t be the only one driving the car. 

Take an advanced driving course

As long as it is recognised by your insurer, taking an advanced driving course can help reduce your premium. Example courses include Pass Plus, IAM Roadsmart, and the Royal Society for the Prevention of Accidents (RoSPA). 

Avoid auto-renewing

Always make sure you compare car insurance quotes, instead of automatically renewing your premium with your existing provider. While you may still end up with your current insurer, you’re rarely rewarded for your loyalty as a customer.

Be proactive

Don’t leave it until the last minute to secure a new car insurance policy. Studies show that getting insurance two to four weeks before your existing cover expires works out cheaper than renewing the day your policy is up. 

Search for discounts and deals

Make sure you search far and wide for your next car insurance policy. This could be looking at quotes through a price comparison website, or going to the provider directly to see whether they have specific deals for using their website. Either way, you can save money by taking the time to thoroughly compare your options.

Choose a higher excess

The more you choose to pay for your voluntary excess, the less you will pay for your car insurance premium. However, there is a balance to strike here, as you should only ever agree to a voluntary excess you can realistically afford if you were to make a claim.