Which factors affect car insurance premiums?
When looking to save money on your car insurance, it’s worth remembering that there are a range of factors at play. It’s not just about the car make and model you choose, even though some cars are cheaper to insure than others. Other factors such as your age, occupation, driving habits and driving history can all affect the premium you’ll pay.
Car insurance is based on risk; in most cases, the lower your perceived risk as a driver, the cheaper your insurance will be. So, if you’ve been driving for a long time without getting into any accidents and keep your car in a secure garage, you’ll likely pay less than a new driver who parks their car on the road overnight.
Why are some cars cheaper to insure than others?
No matter what type of driver you are, some cars are more expensive to insure than others. Every UK car is included in one of 50 insurance group categories. These groupings are determined by the Group Rating Panel (members of the Association of British Insurers and the Lloyd’s Market Association), although individual insurers can use their own grouping systems if they like. The lower the group number, the cheaper your car will be to insure.
There are many factors that can affect the group that each car model is assigned. These include how much the car costs to buy, how easy and expensive it is to repair any damage, how much 23 of the most common replacement parts cost, its performance (including acceleration and top speed), and any safety and security features it comes with.
What are the cheapest cars for young drivers to insure?
Unfortunately, young drivers often face the highest insurance premiums, which can often be over £1000 a year. Drivers aged 18-24 can pay more as they’re viewed as a higher risk; they haven’t been driving for as long as other road users and could get into more accidents as a result. The best way to save on your car insurance as a young or new driver is to choose a small, sensible, and less powerful car like a Skoda Citigo or Toyota Yaris. These cars are often easier to drive too, which can make it less likely that you’ll run into any issues on the road.
Are older cars cheaper to insure?
When it comes to insuring a used car, the car’s age can also affect the price you’ll pay. Older cars can sometimes be more expensive to insure as they might not come equipped with the kind of security systems that newer models have built-in as standard. But, at the same time, older cars are usually less valuable and can be easier to repair, which could help cut your premiums. It’s worth using a comparison site to compare insurance prices and get the best deal for your circumstances.
5 of the cheapest cars to insure
According to data collected by MoneySuperMarket, these are the five cheapest cars to insure in 2021:
The Nissan Qashqai combines the best elements of a hatchback and an SUV to create something special. It’s a comfortable car with a roomy interior but, despite its size, it’s surprisingly easy to manoeuvre whether you’re driving in the city or hitting the motorway. Newer models also come equipped with a host of technology and driver assistance options such as intelligent cruise control and hill start assist.
One of the UK’s most recognisable cars, the Mini Cooper offers a sporty – and spacious – take on a classic design. But it’s not all about looks, the Mini’s Twinpower Turbo engine also packs a serious punch. The interior isn’t the most spacious on the market and boot storage is limited, but tech perks like the 8.8 inch high-res display screen come as standard.
A big hit with business drivers and ideal for the daily commute, the Vauxhall Insignia has long been loved for its stylish design, efficient engine, and comfortable drive. Passengers will enjoy the minimal road noise, generous leg and head room, and wealth of handy storage compartments and cubby holes fitted throughout the cabin. Air conditioning, keyless entry, and cruise control are also available on all models.
The Vauxhall Zafira is a popular and affordable seven-seater family car. Its engine isn’t the most powerful, so it’s best suited to city driving, but what it lacks in performance, it more than makes up for in space. When the third row of seats is down, there’s 710 litres of boot space available – more than enough room for the weekly shop and all your holiday luggage. The Zafira is also equipped with parking sensors as standard and offers a smooth drive that handles any bumps with ease.
A family-friendly hatchback, the Ford Focus has been a firm favourite since it was first released in the late 1990s. There have been four generations since then and each has cemented the Focus’ status as a solid all-rounder. With five doors, five seats, and a decent boot, it’s comfortable for passengers, while drivers will enjoy its agile turning and responsive steering. Newer models feature additional perks like parking sensors, heated windscreen, and electric parking brake.