What Impacts Car Insurance Costs?

7th February 2018

By Adam Smith

The price of car insurance can vary massively from person-to-person, with factors such as gender, age, location and more all having an impact on the amount of money you could be charged for you cover.

What impacts car insurance rates?

Here are some of the key things that impact car insurance costs:



Young drivers (below the age of 25) typically have to pay more for their car insurance because they are deemed more likely to be involved in an accident.


Where you live can have a huge impact on the cost of your car insurance. Areas with more cars typically cost more to insure. Factors such as local crime rates and the number of car incidents can also ramp up prices.

Your history

If you have been involved in any accidents in the past, or have points on your licence, your car insurance could cost significantly more money. On the other hand, a no claims bonus will reduce your insurance costs.

How your car is used

If your car is used regularly for commuting, you will be regarded as a bigger risk on the road as you will typically drive more often on busier roads.

For example, if you are in a sales job that requires driving throughout the day, your premiums will go up compared to someone who works from home. This is because insurers will believe you are more likely to have an accident. Similarly, if your policy comes with a higher mileage your insurance costs can go up significantly.

Your car’s value

The value of your car will have a big impact on the cost of your insurance, with more expensive cars increasing what you pay to insure it. This is because repair costs are typically higher for more expensive cars. Insurance costs are also greater for highly desirable vehicles, as they are deemed more likely to be stolen.

Your car’s power and modifications

Faster and more powerful cars are more expensive to cover as insurers believe such vehicles are more likely to be involved in an accident. Similarly, if you make any modifications to your vehicle’s power or appearance, these will need to be reported to your insurer, who may then increase your premium.


Insurance costs for drivers can be surprising, even for older motorists with years of experience. For assistance, use the giffgaff gameplan comparison service, which will give you policy options based on your vehicle and individual circumstances.

What is the impact of a speeding ticket on car insurance?

Speeding is a massive problem across the UK and going over the limit can have significant ramifications on your insurance. However, the penalty for your crime will depend on the speed you were driving. The penalties are split into Bands A, B and C.

Band A is the category for drivers speeding between 1 and 10mph over the legal limit. The punishment is typically a fixed penalty notice, amounting to 3 points on your licence and a fine valued between 25% and 75% of your weekly income will also be issued.

Secondly, Band B penalties come with a disqualification of 7-28 days or 4-6 points and a fine up to 100% of your weekly income.

Band C – the highest level of punishment – can lead to fines of up to 175% of your weekly income, a ban of up to 56 days or 6 points. When it comes to car insurance, your insurer will want to see all of the details about the conviction, so make sure you explain everything that happened to them as soon as possible, including points and any fines you were charged.

Insurers will have their own conviction policies, so the impact of a speeding ticket will vary depending on your cover, but you are certain to see an increase. Depending on the offence, drivers could see their premium go up by £300+ a year.

In the event you are caught speeding and see a rise in insurance costs, consider taking part in a speed awareness course or opting for a black box policy – a type of cover where insurers analyse your behaviour and adjust your premium depending on the safety of your driving.

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