Insurers take a number of factors into account when calculating your premium. Who will drive, the type of car, where the car is normally kept, the ‘use’ of the vehicle and the type of cover required are just a few of factors considered. Some insurers will also take into account other factors such as whether you smoke and if you are a homeowner.

Most importantly, you must provide your insurer with accurate and complete information both when purchasing any type of insurance cover and throughout the life of the policy (should any of this information change). Insurers use the term material facts to describe information which they use to underwrite a risk and decide whether to offer cover.

Where you live and where your car is normally kept overnight can have a significant effect on car insurance premiums. Generally claims are more frequent in urban areas, such as cities and large towns and drivers in these areas will usually pay more for their car insurance than those who live in the country.
Drivers who have had previous convictions will usually have to pay more for their car insurance. An isolated minor offence (such as a speeding conviction not involving a ban) may be accepted by some insurers without a loading to the premium, however all convictions for all drivers must be disclosed to insurers even if you feel the offence is a minor one. TOP
 
Do not be tempted to withhold details of previous convictions or claims from your insurer or potential insurer. Insurance companies now share underwriting information with each other and if you are found to have withheld material information, your insurance could be declared void. This means your insurers will refuse to pay your claim. TOP
 
The ABI (Association of British Insurers) categories car models into twenty groups (numbered 1 to 20). Various factors are used to determine the group rating for each vehicle, including the likely cost of damage plus the cost and availability of parts, repair times, performance factors (faster, sportier cars generally have more claims) and the security features of the vehicle.

The ABI Vehicle Groups are only recommendations and individual insurers can and do choose to vary Groups based upon their own claims statistics. TOP