The algorithm for calculating car insurance is very complicated and made up of many factors. Drivers are being warned that even the type of driving licence they hold can create an additional £1400 in annual premiums.
So, What’s the Story?
The cost of ensuring your vehicle can vary from person to person, with new drivers getting the worst end of the deal. However, while people are aware that certain factors change the cost, such as your age, type of vehicle, and previous accident history, there are many things that play a part, and most people have no idea.
EU v the UK
If your driving licence is the full UK-Issued driving licence, you are probably going to find your premium isn’t too bad, but if your licence is issued as an EU licence, you are likely to pay £1400 more to insure your vehicle than those who have the UK licence. Holding a provisional licence means your car insurance premiums skyrocket, but that isn’t the type of licence that cost you more. Some drivers prefer to learn in automatic vehicles, and you can take a test to obtain an automatic licence which means you cannot drive a stick vehicle. However, while it may seem easier to drive an automatic licence, your car insurance could be £700 per year more than those who drive a stick shift car.
Electric Vehicle Penalty
Now that last rule, in particular, is causing much bad feeling. By nature, all-electric vehicles are automatic. Therefore the car insurance, even if you hold a full stick shift driving licence, will be around £700 more simply because you are driving an automatic electric vehicle. It certainly seems like this needs to change as the government is pushing everyone towards electric cars.
Other factors pushing your insurance premiums up include your education status, with student nurses paying the most for their car insurance. If you are retired, your insurance premium will go up, as for disabled drivers. This is a two-sided argument, as clearly there is the potential for more accidents with age or disability; however, they are also a vulnerable group who need to be able to maintain their freedom. A shocking factor is having an additional driving qualification. Many drivers wrongly believe that if they take extra driving qualifications to ensure they are safe on the roads, they are also putting around £450 more each year onto their insurance premium.
Finally, having a criminal conviction will also inflate the car insurance premium you pay. You may expect this to be true in the case of a motoring criminal conviction, but actually, any form of a criminal conviction will cause your car insurance to rise by over £1000 a year. If your sentence is motoring related, this penalty will be even higher. If you have a terrible history with insurance premiums and many claims and accidents or had it cancelled or declared void, you will also be looking at an extra thousand pounds on your premium.