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Experts at Adrian Flux answer your questions about the cost of car insurance

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May 17, 2021
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People complain about the cost of car insurance but in actual fact motor insurance is at its lowest level in five years. 

According to the Association of British Insurers’ price tracker survey, the average cost of car insurance during the first quarter of this year was £436. That’s a £32 reduction on the average cost between October and December 2020.

Of course, some people pay a lot more than the average. If that’s you, it’s time you spoke to an expert about your insurance needs. 

Here the team at Adrian Flux answer your questions about the cost of car insurance and investigate how you could lower your annual premiums. 

cost of car insurance

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Why is car insurance so expensive?

There’s no getting away from it, the cost of car insurance is a significant investment but it is a legal requirement to have your vehicle insured. The minimum level of insurance required in the UK is third party cover.

With third party, if you cause an accident, any damage to the other person’s vehicle or property will be paid for by your insurer. Third party also covers any passengers in the car with you if they are injured in an accident. 

Damage to your vehicle will not be covered, and you’ll need to pay to get things fixed. You’ll be unable to claim if your car is damaged by fire or stolen and if you’re injured.

Better protection is offered by third party, fire and theft, and the best protection comes with a fully comprehensive policy, but these are more expensive.

If you think the cost of car insurance is too high, it is likely that insurers consider you a high-risk driver.

Your insurance provider determines this risk by considering many factors including your age, driving experience, occupation, postcode, and any convictions or previous claims. 

They will also consider the risk your car represents. All cars, including yours, will belong to one of 50 car insurance groups, which bands cars from the cheapest to the most expensive to insure. It starts with the least expensive in group one and ends with the most expensive in group 50.  The more powerful, expensive and rare your car, the higher the group it will belong to and the higher the cost of car insurance.

Are automatics more expensive to insure than manuals?

Automatics can be more expensive to insure than manual cars, primarily due to higher claims costs and the fact that automatic gearboxes cost more to replace than manual ones.

Another factor that may increase the cost of car insurance for an automatic is that they tend to be higher specification cars — meaning they are worth more and are more expensive to repair or replace — than many manuals.

Are imported cars more expensive to insure?

The cost of car insurance for imported vehicles is normally higher because insurers see them as a higher-risk they usually cost more to repair, parts are more expensive and they are often higher-spec, with more powerful engines than standard cars. They’ve also sometimes been modified to fit with UK regulations.

This means there is a lot or risk for insurers so they often hike their prices or refuse to insure imported cars at all.

If you need a quote for the cost of car insurance for an imported vehicle you should go to a broker such as Adrian Flux which specialises in niche motoring markets including imported cars. Adrian Flux aims to provide low cost, high quality insurance for all imported vehicles.

cost of car insurance

Photo by Theodor Vasile on Unsplash.

Which are the most expensive cars to insure?

Cars in insurance group 50 —  the most powerful, desirable and high spec models — are the most expensive to insure. Examples of group 50 cars include the A6 RS6 Avant, Bentayga SUV, BMW 8-Series Coupe, Ferrari F430 Coupe, Jaguar XK R-S Convertible, Range Rover Sport SVR and the Mercedes-Benz AMG GT.  

Find out more about group 50 cars and the insurance banding system in this blog.

Are older cars more expensive to insure than new ones?

There’s no definitive answer to this question because the cost of car insurance is calculated not just with the car in mind but with those who may be driving it too. 

In general terms, the newer car will have better security and safety measures so it is less of a risk. On the other hand it may cost more to replace a new car than an old one, so this will be a factor, too. 

Why is short-term insurance more expensive?

Short-term insurance provides comprehensive cover for you to drive a vehicle for as little as one day and for up to three months. It’s perfect if you need to borrow a car for a week or two while yours is off the road, or if you’re staying with a relative and need to use their car while you’re there. 

Many people also use short term policies to provide immediate cover after buying a car, before they’ve found a suitable annual policy to commit to.

Short-term cover will often be more expensive than that provided by an annual policy, but many feel the convenience it offers outweighs the extra expense. 

And if you go to a specialist such as Adrian Flux you can still get a good short term deal on the cost of car insurance. Cover can cost from as little as £20 for one day. Of course, like all insurance, your actual quote will vary greatly depending on the driver and the car being covered.  

Why is car insurance so expensive for me?

Your age and experience, motoring and criminal convictions and the banding of your car can all help drive up the cost of car insurance every year. But there are other elements that insurance providers also have to consider. These include the following.

More expensive claims

Advanced vehicle technology has led to an increase in keyless car crime and more expensive repair bills. This, in turn, has led to increased rates of theft and repair claims and has impacted on the cost of car insurance. 

Motor insurance fraud

The Association of British Insurers estimates dishonest insurance applications and claims cost the industry £1.3 billion a year. Unfortunately, honest motorists have to foot that bill through increased premiums. 

Uninsured drivers

In 2019 the Motor Insurer’s Bureau reported that uninsured drivers cost the insurance industry £400 million a year. This is another expense passed on to insured drivers through the cost of car insurance.

Claim culture

The UK has seen a rise in personal injury claims, partially due to personal injury lawyers who often buy referral details of UK motorists, and then contact them to find claims to pursue. We’ve all received calls out of the blue asking if we’ve been in an accident that wasn’t our fault. 

Are turbo cars more expensive to insure?

The size of your engine helps determine how powerful your car is.  Bigger engines are more powerful and that will land the vehicle in a higher insurance group than one with a small engine. The higher your insurance group, the higher the cost of car insurance.

Small engines can be powerful too, especially if they are turbo charged to give them even more zip and because turbo charged engines are more powerful, they’re generally more expensive to insure.

cost of car insurance

Photo by Brett Jordan on Unsplash.

Is hybrid car insurance more expensive?

Hybrid vehicles may need more expensive car insurance because the engine and parts cost more to repair than a petrol or diesel car. That means insurance premiums can be more expensive too. And hybrids may also have to be repaired by a specialist mechanic, which can drive up the premium further.

Are modified cars more expensive to insure?

To avoid paying for more expensive car insurance for the modified vehicle you should go to a specialist insurance provider such as Adrian Flux. We reckon if you’ve invested time and money and made the effort to customise your car, you’ll probably take good care of it. That means we’re often able to offer you better rates on the cost of car insurance.

Even if you’ve already received a decent quote from another insurance broker or provider, give us a call anyway because we will enjoy the challenge of trying to beat your best quote for modified car insurance.

And it’s worth remembering that not all mods will necessarily push up the cost of your insurance. Read our blog about analysis that shows that declaring mods can actually lower the cost of your cover by more than a thousand pounds.

Expensive car insurance? Try Adrian Flux

If you’re worried about the cost of car insurance, give Adrian Flux a call on 0800 369 8590. We are confident we will be able to steer you towards a better deal on your cover, especially if you have been quoted in excess of £2,000.  

There are no complicated online forms to fill in, tell one of our experts about your insurance needs and we will usually be able to save you time and money 79.5% of all customers receiving an online quote in July 2020 could have obtained a cheaper quote over the phone, based on the information they provided. 

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