Factors insurers take into account

  • Your age. Insurers will take into account data based on age groups and mostly young drivers below 25 will have to pay a much higher rate than those older. The average annual cost for an 18 year old is around £1000 with increases each year. Government statistics report that in 2022 62% of casualties of all severities were male. Male drivers under 25 were found to be around 4 times more likely to be in a crash.

In 2022 they found that most male casualties of all severities were 30-49 year olds and there were around 27,539 cases. For females the same year it was also 30-49 year olds with 16,341 cases.

Many young drivers are struggling to afford insurance when they pass their test and with prices increasing each year there seems no solution through this.


  • Type of car. The cheaper you car and smaller the engine your insurance will likely reflect this with more expensive cars being a lot more to insure.


  • Where you live. Insurers will take data from your area such as, crime rate, amount of claims filed, high risk road systems to determine whether your area will make you more likely to claim.


  • Where you car is kept overnight. If you car is parked overnight on a busy road then your insurance could be more expensive than being off road on a drive way or allocated parking spot.


Other factors include, how long you have been driving, if you have any other claims on your driving record and your job including if you use your car for work.


Why the price is increasing

In 2023 insurance was 25% more expensive than the previous year and the increase is expected to continue.

Insurers recorded a 21% increase in pay-outs in the last half of 2023, paying £2.5bn.

Insurance fraud has increased with more people tricking insurers into paying them for a fraudulent claim and so insurers are losing money.

Additionally, uninsured drivers are reportedly causing issues as when they are in a crash, the innocent parties insurance will have to pay out due to the one party not having insurance.

As well as this, the higher prices in cars as well as car parts and used cars are increasing the amount insurers have to pay out and so they increase their prices.