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Why Is My Quotation Price More Than The Value Of My Car?

When calculating your Young Driver insurance premium we have to take a number of things into consideration, not just your car’s value.

After buying your first car you may find that most, if not all, of the Car insurance quotes you have found are actually higher than the value of your car. This is common for young drivers getting their first insurance policy.

The main reason that Young Driver Car insurance can cost more than the value of your vehicle is because the price (or value) of your car isn’t the only thing taken into account by your insurance provider, and there are a number of other factors that go into calculating the price of an insurance premium, whether that’s for Car insurance, Home insurance or any other type of insurance policy.

Insuring anything comes down to statistics, and as a new or young driver with no previous data (such as that gathered by a telematics device) on which to base the calculation, the insurance company has to use their experience and data gathered from other young drivers with similar circumstances, to forecast your driving behaviour and calculate your premium. Young drivers are statistically more likely to be involved in an accident than any other age group, and therefore Car insurance premiums for young drivers reflect that, which means quotes can be in the thousands of pounds, and sometimes that can eclipse the price of your car.

quote price more than my car

The value of your vehicle isn’t the only thing taken into account; if you were to be involved in an accident and it was deemed your fault, your insurance company would have to payout to the third party, and the value of that car may be in excess of £100,000, and there may be expensive third party injury claims to consider as well, for example.

Other factors such as the location your car is kept in overnight and where it’s kept can also have an effect on your insurance premium. Vehicles in an area with a low crime rate, kept in a locked garage overnight, will likely pay less than if they were parked on the street, in a high crime area. Of course, the type of car you would like to insure can also have a massive effect on your insurance premium. This is especially true if your car make and model is associated with poor driving or is a target for car thieves.

Before buying a vehicle it’s always worth doing research into what cars have the highest insurance premiums associated with them, so that you can avoid a nasty surprise when you’re looking for your Car insurance quotes. It’s not as simple as buying a hatchback with a small engine, if other motorists with the same car keep crashing them! This is why you might hear stories of people getting a better insurance quote for an estate car with a bigger engine, than a smaller hatchback. Even so, when you are looking to buy a car it’s important you purchase something you would be comfortable driving.

How you use your vehicle is also a key factor when an insurer calculates your insurance quote. For example, a Young Driver insurance policy with cover for Social, Domestic & Pleasure use, including Commuting is going to have a lower quote than a policy with Business use included too.

More information on how a Young Driver insurance premium is calculated can be found in the FAQ: How Is My Young Driver Insurance Premium Calculated?

The best way for young and new drivers to combat high Car insurance prices is to prove you are a competent and safe driver, and the way to do that is by taking out a Black Box insurance policy and driving sensibly. Not only will you often pay less for a Black Box insurance policy than a policy without a box, but your renewal price will reflect your actual driving performance across the year, and good driving can be rewarded with a lower renewal premium. 

If you have more questions about Young Driver insurance you might be able to find the answer in our Young Driver FAQ section.

young driver insurance quote for black box installation

Black Box Insurance Quote

Are you looking for a Young Driver insurance quote? If so you can call 0800 221 8077 to speak to a member of our Young Driver team who’ll be able to walk through the process and answer any queries you may have. Alternatively you can click ‘Get a Quote’ below and we’ll give you a call.

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