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Why is my car insurance premium so high?

Are you wondering why your annual car insurance premium is so high? Perhaps it’s your first time taking out car insurance and you want to know what factors are affecting your price, or maybe you’ve found your price has gone up on an annual policy and are wondering why.

Discover how to lower your car insurance in this article, as well as the most common reasons your car insurance may feel high.

How to lower the price of your car insurance

The main way anyone can lower their car insurance premium is to understand what factors may be contributing to it being higher than someone else’s. Once these factors have been revealed, you can take steps towards reducing them. Read on to discover the common reasons why your car insurance might seem high.

Reasons why your car insurance may be high

Car in dealership

You’re a young, or new, driver

Passing your test and getting your first car, or insuring yourself on a parent’s car, can be an amazing milestone. However, as a new driver, you’re likely to be facing a high insurance cost. This is because younger drivers have a higher chance of crashing. For insurance purposes, a young driver is classed as anyone under the age of 25, however, even if you pass after your mid-20’s, you’ll likely see a higher price due to lack of experience.

Solution: There is no way to change your age or how long you’ve been driving, however, there are a few things that may help cut the cost of your policy down. Many insurers now offer black boxes, which reward better drivers with discounts. You can also try adding a parent or older relative to your policy or even just opting for temp cover if you want to drive someone else’s car every now and then but don’t need an annual policy.

You have had moving violations

Having points on your driving license is one way that your insurance price will go up. Any number of points is more than likely going to push up the price of your insurance policy, and the more serious the driving offence that got you those points, the higher the price will rise.

Solution: You are unable to erase points from your licence, although they will erase after a minimum of four years (for more serious violations this can be as many as 11 years.) If you are in this situation, you may be able to get a black box which can bring down your premium. Alternatively, a temporary policy is great if you only need to use a shared vehicle every once in a while.

You have previously made an insurance claim

If you’ve found that your premium has gone up in the last year, it might be because you’ve made an insurance claim. The more incidents you have on your insurance record, the more ‘high-risk’ you are seen to be as a driver.

Solution: Similarly, if you have points on your licence, retroactively you are unable to do anything about this, however, your policy price may lower if you have a black box.

Open diary

Your insurance has lapsed

Letting your car insurance run out or lapse is a serious matter, and this can, of course, affect your premium. When you’ve had a car for a few years, you’ll likely receive copious annual reminders to ensure this doesn’t happen which shouldn’t be ignored. If you are in the process of buying a car when the insurance lapses, you’ll still have to face the repercussions regarding your insurance cost.

Solution: Although there is no retroactive solution to this, not allowing your car insurance to lapse is the best way to avoid a boost in premium. It’s especially easy to let insurance lapse whilst a car is in between drivers, or perhaps waiting for a new driver to pass their test. In these times, getting temporary car insurance means you don’t need to rush into an annual policy, but you have cover to bridge the gap.

Your car or vehicle

All vehicles are split into insurance categories depending on a range of factors including their safety and engine size. This means, that driving a more conservative vehicle may indeed knock some money off of your insurance cost. It also means though, that a car built for speed is likely to add more on.

Solution: Short of selling your car or vehicle and investing in another, there isn’t much you are able to do about insurance price rises because of your vehicle of choice. This is why you should always research the insurance category before buying a car.

Your job title

Even your job title might have an effect on your insurance premium. Each job role is factored for potential risk based on past insurance claims, and as so, you may find that your job title can add some extra cash onto the price of your insurance. This applies even if you aren’t getting business cover.

Solution: For those who have a job that encompasses many roles, there may be variations on your job title, for example, the Mirror explains: “‘Music teachers’ pay £86 more than ‘teachers’, ‘office managers’ pay more than ‘office administrators’, and ‘construction workers’ pay more than ‘builders’ who – in turn – pay more than ‘bricklayers’.”

If there are synonymous titles for your role, consider trying some to see if your premium is affected, although, you should never lie about your job role as this would deem the policy invalid. Equally, if you have multiple jobs, you may find a difference in price depending on which you list, however, most insurers will ask you list your main source of income as your occupation.

Reasons why your car insurance may be high:

  • You’re a young, or new, driver
  • You have had moving violations
  • You have previously made an insurance claim
  • Your insurance has lapsed
  • Your car or vehicle
  • Your job title

Here at Dayinsure, we offer temporary car insurance policies for all of your needs. So whether you are looking to cover an insurance gap between annual policies, or you need temporary car insurance for non-UK residents, we can help.

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