How are car insurance premiums calculated?
Jason Barker • February 28, 2023
The cost of your car insurance premium is based on factors that the insurance provider will use to assess how likely you are to make a claim and how big of a risk they believe you to be. These factors include:
- Your address – Insurance providers will look at a variety of factors for your residential address, including the average claim history, the crime rate and general driving behaviour.
- Your age – Your age can affect how much you pay for car insurance. Typically, young people are considered higher risk drivers due to their inexperience and likelihood of being involved in an incident. Providers often recommend policies with telematics boxes for young drivers, as these monitor driving characteristics and adjust the premiums accordingly. Similarly, older drivers over 70 may pay more for insurance given the likelihood of an accident.
- Your occupation – Insurance providers consider whether your occupation increases or decreases the likelihood of you making a claim. For example, social and community workers may pay a higher premium due to the increased hours spent driving and chance of visiting areas which have high crime rates.
- Your driving history – Providers will consider your years of experience, prior claims and driving convictions when calculating your premium. They typically want to know of any claims made in the past five years, including any non-fault claims. If you’ve not made any claims for a year or more, you may have accrued an element of no-claims discount, which can lower the cost of future premiums.
- Your mileage – Having a higher mileage allowance is likely to increase your insurance premiums, as the further you drive, the more likely you are to be involved in an accident.
- The type of vehicle – The make and model of vehicle can impact the premiums payable. More expensive vehicles will create a higher cost for providers in the event of the vehicle being written off and your insurance cost will be higher.
- Where your vehicle is left overnight – The likelihood of car theft increases overnight, with more burglaries taking place after dark. Parking your vehicle in a garage or secure driveway is therefore considered safer than parking on a public road. If you don’t have a garage or driveway, we suggest selecting somewhere which is well-lit, with CCTV if available.
- How much excess you’re willing to pay – If you make a claim, the total excess payable is made up of compulsory excess and voluntary excess. The higher the voluntary excess, the smaller the amount needed to be contributed by the insurance provider, resulting in a lower insurance premium. However, you must select a voluntary excess amount which you could afford to pay in the event of an accident.
If you need a bit more information or want a chat about any of the above, don’t hesitate to give us a call!
Does Buying a Used Car from a Business That Also Carries Out Accident Repairs Mean It Has Been Accident Damaged?
We’re incredibly proud to announce that CARS of Grimsby has been shortlisted in three categories at the Greener Bodyshop Awards 2026
CARS of Grimsby now offers quality used cars and vans for sale, backed by years of trusted vehicle repair experience and customer care.
Here at Select Vehicle Sales by CARS of Grimsby, we pride ourselves on the service received by our customers. Each vehicle we sell meets our quality standards; each customer journey is seamless and stress-free.
Most people buying a used car look at the mileage, service history and overall condition. We look much deeper. Years of repairing accident damaged vehicles has trained our eyes to spot things that many people would never notice. Subtle differences in paint finish, panel gaps, replacement panels, poor welding or signs of previous structural repairs can all reveal a vehicle's past, even when that damage has never appeared on an insurance database or history check.
When you work with vehicles every day, you quickly learn what separates a great used car from a poor one.
For many years, CARS of Grimsby has supported motorists with trusted accident repair and vehicle care services. As a family owned and run business, we have always believed that great service comes down to doing the job to the best of our ability, communicating honestly and treating every customer as an individual. Those values have helped us build strong relationships with motorists, insurers and businesses, and they remain just as important to us today. Now, we are preparing to begin an exciting new chapter. Decades of Accident Repair Experience in Grimsby CARS of Grimsby is best known as an established and multi-award-winning accident repair centre, helping customers get back on the road following everything from minor bumps to more significant damage. That work has given our team a detailed and thorough understanding of vehicles and their condition. When you spend years repairing bodywork, checking panel alignment and assessing previous damage, you learn to notice the details that may not always be obvious at first glance. You also learn how important quality, safety and honesty are to motorists. Our team has developed this knowledge through experience, ongoing training and working with a wide range of vehicles over many years. It is experience we are proud of, and it will remain at the heart of the next chapter of CARS of Grimsby.
Had an accident and not sure what happens next? You’re not alone.
At CARS of Grimsby, our friendly team are on hand to offer honest advice and guidance throughout the insurance claims process. We’ll help you understand your options, and explain what you do (and don’t) have to do after an accident.
In May, the team attended the Northern Lincolnshire Business Awards, organised by the Hull & Humber Chamber of Commerce. The CARS team was awarded the Forrester Boyd Business Excellence Award.
CARS of Grimsby celebrates three Northern Lincolnshire Business Awards nominations, recognising leadership, business growth and employee success in 2025.
