Why does my postcode change the price?

Insurers use local data on theft, accidents and claims. Areas with higher claim rates generally see higher premiums, even for identical drivers.

Does the colour of my car matter?

Insurers do not generally price on colour, but the make, model, engine size and insurance group do make a difference.

Why did my premium rise even with no claims?

Renewal prices can move with wider factors such as repair costs, vehicle theft trends and inflation, independent of your own record. Getting fresh quotes at renewal can help.

Money and renewals

What affects the cost of car insurance?

Your car, age, postcode, mileage, claims history and chosen excess all shape a car insurance premium. Here is how insurers weigh each one.

Your car insurance premium reflects risk. Insurers weigh your car, your age and experience, where you live, how much you drive, your claims history, and the cover and excess you choose.

The main factors insurers consider

No two drivers are priced the same. The biggest influences on your car insurance cost usually include:

The car's insurance group, value and engine size
Your age and driving experience
Your postcode and where the car is kept overnight
Annual mileage and how you use the car
Your claims history and no claims bonus
The cover level and excess you choose

Your car

Cars are placed in insurance groups based on things like repair costs, parts prices, performance and security. Higher groups usually cost more to insure. Modifications can also change the price, so they need to be declared.

You and where you live

Younger and newly qualified drivers usually pay more because they have less experience. Your postcode matters because insurers use local claims data, and keeping the car on a driveway or in a garage overnight may help.

How you use the car

The more you drive, the higher the chance of a claim, so mileage matters. Using the car for commuting or business can also change the price compared with social use only.

What you can control

Some factors you can't change, but others, such as mileage, excess and security, are within your control. Because each insurer weights these factors differently, getting more than one quote is the most reliable way to see the range of prices.

About Kompare

Kompare doesn't currently offer quotes for standard car insurance. This guide is kept as general information. We do work with brokers for young driver insurance, convicted driver insurance and modified vehicle insurance.