How Car Insurance is Calculated

Insurance companies apply different factors to the way they finally arrive at at the advertised price for Car Insurance. Generally speaking though the concept is the same. This involves collecting various pieces of information from you and entering it into a computer system which adds or takes away money depending on the answers you give.

The value put on these answers is decided by the individual Car Insurance company themselves.

An example of this is some car insurance companies may believe that having a speeding conviction will increase the chances of you having an accident in the future - as a result they may add money to your car insurance quote if you have such a conviction.

Car Insurance companies may also decide that because you have several years NCB (No Claims Bonus) then you are less likely to need to claim, therefore they may give you a discounted car insurance premium. There are over 30 different factors that can affect your final premium. Now you can see why you get such a difference in the cost of your Car Insurance by going to different companies. Each company will have it's own view of what should be assigned to each answer you give. See our Car Insurance section to get a quick car insurance quote from lots of companies.

That way you can get the cheapest insurance for your needs.