How Car Insurance Quotes are calculated

How Car Insurance Quotes are calculated

When insurers calculate your car insurance they will ask a series of questions. These questions will help them to determine the risk that they could be taking on and also how likely you are to make a insurance calculated

Insurers will look at the same factors when the premiums are calculated, but as risks are not the same prices will vary between companies. The main areas that they look at are:

Vehicles Worth

Damage and Parts Costs: the extent of the damage to each car model and the cost to repair it.

Repair Times: the longer the repairs take then the higher the cost

New Car Values: the price of a new car is usually considered

Body Shells: the availability of the body of the car is taken into account.

Performance: important factors are the top speed and the acceleration.

Car Security: insurance can be reduced by security features.

Claims History

Insurers will need your claims history from the past 3 to 5 years.

The more claims that have been made then the bigger the risk to the insurer, so your premiums might be a lot higher.


When insurers are looking at how much to charge they will look at all the drives covered.

Car Usage

You can have lower premiums if you only use the car to go short distances, however if you travel a lot then the premium will go up.

Driving Convictions

You are a greater risk if you have had any driving convictions on your license. The insurer will ask for the details of any convictions in the 3 to 5 years.

Medical Conditions

Insurers are not able to charge extra for medical conditions if you have a license without any restrictions.

If you do have restrictions then this will be considered towards your risk.


The more that you are on the road then the bigger the risk you are and your premium will increase. You will then need to be accurate when you report your annual mileage to the insurer.


The security systems that you have in the car will play a role in the premium you are charged.

Vehicle Value

The value of your car will play an important factor in determining your premium. Expensive cars will usually cost more.

These factors will influence the car insurance quote you receive and the different companies will judge these aspects differently resulting in differing quotes.


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