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What makes my car insurance expensive?

Insurance prices area mystery for most people. If you're wondering what could make your car insurance more expensive than your neighbour's, you've come to the right place!  


The basics

Insurers will ask you to provide a few details before being able to give you a quote. That's because premiums are calculated individually, and take into account a multitude of factors inherent to each customer. This is how they're able to assess the "risk" they take in insuring you, and determine whether they will be able to do so.  

The way all these factors interact is determined by a complex pricing algorithm. This is why we've isolated the factors most likely to influence your premium.

1. Your Age

Age is essential when calculating a quote, as it is directly related to your driving experience. Statistically, drivers aged between 17 and 25 are the most likely to get in an accident. As a result, younger drivers tend to get most expensive quotes, as the risk for them to make a claim is higher than for older drivers.


It's worth keeping in mind that the age and driving experience of your additional driver can impact your price substantially as well. Hence, the youngest and inexperienced the other drivers are, the most likely it is your price will go up. On the contrary, it could decrease after adding a more experienced driver.


2. Your No Claims Bonus

Following the same logic, good drivers usually get lower premiums, based on the assumption that drivers who have been driving carefully for the past years aren't very likely to start driving recklessly all of a sudden.

All countries have a different way to keep track of claim-free driving. In the UK, this system is called No Claims Bonus, or No Claims Discount. How it works is at the end of each full year you drive without making a claim, you earn an additional year of NCB. Most insurers give a discount to customers who can prove their No Claims Bonus. Often, the discount increases with each claim-free year.

Looking for an insurer that takes into account your foreign driving experience? Marshmallow is here for you! We accept proofs ofNCB and all their foreign equivalents. The document doesn't even need to be translated to English! Get a quote here, it only takes two minutes.


3. Your occupation & car usage

All jobs are different, and daily routines vary widely from an individual to another. That's why your occupation can influence your premium. For example, the risk of getting involved in an accident is higher when you're out on the road all daylong, than when you spend the day in an office building. Similarly, the more you use your car, the higher your quote will be. That's why car usage influences your premium as well.



4. Your car

It seems needless to say, but your car insurance premium will also be impacted by the car you drive.There are numerous factors involved, but the most common ones would be the car value and horsepower. That can be easily explained that powerful cars are more likely to get involved in a crash, and claims are going to be much more costly if the car was expensive to begin with.


Then, the desirability of your car is taken into account. Some cars will be more expensive to insure because they're nice and trendy, and could attract car thieves. Reversely, some older cars are easier to steal because they don't have the same level of protection, or because car thieves have had time to develop their skills. Old cars also tend to break more often, and aren't always as safe as more recent cars in an accident.


5. Providing incorrect information

Regardless of your personal and car details, the factor that will impact your premium most will be providing incorrect information. All insurance companies will run numerous checks on each of their customers to detect erroneous details, as knowing their customer-base is essential to keep premiums as low as possible.In most cases, it might be much more expensive for you to come back and change your personal information if the company identified the mistake.


Similarly, in the event of a claim, your cover could be invalidated if the details you provided aren't correct, which defeats the purpose of insurance. Of course, that wouldn't apply to small typing mistakes, or obviously accidental errors.But it's worth double checking the details you give at sign up, and contact your insurer if any of the details you provided change.


 6. Where you learned to drive

Foreigners face a lot of obstacles when moving to the UK. The exorbitant price of their car insurance is definitely one of them. That's because most insurers don't take into account driving history outside the UK, and sometimes don't even recognise foreign driving licences. Based on data collected last year from a UK comparison site, drivers born in a foreign country are charged up to 51% more on their car insurance on average.


At Marshmallow, we believe in migration, and not that overseas-born drivers are 51% riskier than UK-born people. Our mission is to give foreigners access to fair financial products, such as car insurance. This is why we recognise foreign driving licences, and take into account your No Claims Bonus or any international equivalent. Get your quote from Marshmallow! It only takes 2 minutes!

Customer happiness supervisor

Why we can't cover everyone

We're doing our best to make insurance accessible for as many people as possible. But unfortunately, keeping our premiums low also means not being able to insure everyone. Want to understand how this works? Simply follow the link.


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