Does the value of my car impact the cost of my car insurance policy?
Does the value of my car impact the cost of my car insurance?
The value of your vehicle will be considered by your insurer when your policy is being underwritten.
When determining the price of your insurance, your vehicle will be allocated to an insurance group. This grouping is determined by the estimated cost of repairing the vehicle using new and genuine parts and therefore the underlying value of the vehicle itself. For example, newer and more modern vehicles have increased technological advancements which means that the vehicle value and the subsequent cost of parts and repairs has increased substantially in recent years. This is likely to increase the cost of insurance premiums on the whole.
Your insurer will also consider a number of other factors when calculating the cost of your insurance premiums:
- Driver age and experience
- Level of cover required
- Address
- Occupation
- Driver history
- No-claims discount
In summary, the cost is based on risk to the insurer and the anticipated cost of repairing the vehicle. Further information can be found in our blog ‘How are car insurance premiums calculated?’.
