When you drive a vehicle in the UK, you need to have insurance. This is a legal requirement, as it is designed to protect both you and a third party if you have an accident. Because it is a requirement, some people are suspicious of the costs involved in buying insurance. There are a number of factors in how much your insurance costs – which can often seem obscure to the outside observer. What factors do actually affect your insurance price, and which factors don’t?


Insurance companies make many decisions based on your personal characteristics. Your age is one of the most significant characteristics. This is because insurers tend to view younger drivers as being a higher risk than older drivers. Unfortunately for younger drivers, the statistics back this idea up. Drivers under the age of 25, and in particular those under the age of 21, are much more likely to have an accident or incident than older drivers.


Insurance is based on probabilities. Insurers have to ‘bet’ against you having an accident. If you have had an accident or claim before, even if it was not your fault, then insurers will see you as a worse ‘bet’. As a result, it is likely that insurers will want you to pay more for your insurance than if you had never had a claim or an accident.


Where you live can affect your insurance price significantly. This is because insurers are wary of areas in which there are a higher than average number of claims and accidents. While this may not be your fault at all, insurers work with large numbers, and large scale data. This means that your individual case can simply become a statistic. Unfortunately, if you live in certain areas, you are likely to be charged more for your insurance.


What you do for a job affects what your insurers think of you. Primarily, they would prefer you to have a job at all – and often will not insure someone who does not have a job. However, even if you do have a job, what it is can affect your insurance price. If you work in sales, for example, you are likely to receive higher insurance premiums than if you work in marketing.

At Alternative Insurance Brokers, we specialise in helping people find insurance that is right for them. If you have found it difficult to get insurance before, such as if you have a conviction, you might find many insurers will not cover you. Alternative Insurance Brokers can find insurance for all sorts of people – whatever their driving history.