Your car insurance renewal quote has come through, and the price has gone up. But you’ve not claimed and your driving habits haven’t changed, so why are you being asked to pay more than last year?
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Why has the price of my car insurance gone up? 

There are two main reasons why the monetary value of your car insurance has risen. The first is economic reasons and the second is risk factors. There international relations and security network ’ deoxythymidine monophosphate much you can do about the erstwhile, but thankfully there ’ s a fairly piece you can do to control the latter .

Economic reasons 

There are several economic factors that influence the price of car indemnity :

  • Insurance Premium Tax (IPT): IPT is a tax that the government levies on all insurance policies, so there’s nothing you can do about it. Between 2015 to 2017, it rose from 6% to 12%. 
  • Serious injury compensation: When people make a claim for a serious injury or whiplash, insurers use something known as the Ogden rate to calculate payouts. This can go up and down and has a direct impact on the cost of your cover.
  • Uninsured drivers: If you’re hit by an uninsured driver, you might be able to claim for it through the Motor Insurance Bureau (MIB).This impacts on other drivers’ insurance costs, as the MIB recoups the money by raising the premiums of law-abiding drivers. 

Risk factors 

insurance is based on risk, indeed if an insurance company thinks you ’ re bad, they ’ re more probable to charge a higher premium. Some gamble factors are obvious – if you get points on your license you ’ ll likely see your premium ascend – but others like where you live or your occupation are less so .
If you ’ ra wondering why your car insurance has gone up, here are a few examples of the factors that could be affecting you :
Car accidents
tied a minor prang could bump up the cost of your indemnity. If an accident was your fault you might expect a meaning hike to your premium. But evening if it wasn ’ t your blame the cost of your cover might placid go up .

Criminal convictions
It ’ s likely that if you have a criminal conviction, your costs could go up. This is because you ’ re seen as higher risk to insurers. If you ’ ve got an unspent criminal conviction, motoring-related or not, you should declare it to your insurance company. You might besides need to declare exhausted convictions but only if you ’ ra asked. Read our guide on motor policy for convicted drivers for more information .
Points on your licence
Your insurance is likely to go up if you ’ ve got points on your license. Some points stay on your license for four years or more, depending on the badness. Make surely you declare any points on your license and the reason for them to your insurance company. If you don ’ thymine disclose them, your insurance company might not pay out if you need to claim .

Car modifications
think of souping up your centrifugal ? It could cost you more to insure. Whether you ’ ra remapping your engine adding a raw pamperer, it ’ sulfur classed as a car modification. even something equally simpleton as a tow measure could add to your premiums. Car modifications could make cars more attractive to thieves, which increases their find of being stolen .
other modifications might increase the focal ratio and world power of the car, which puts you at more risk of being involved in an accident. What counts as a modification varies between insurers, as does the extra price. Some insurers offer insurance specifically for modified vehicles, besides, so it ’ south always worth shopping about and comparing car indemnity quotes .

Your occupation
Insurers have data attached to each type of occupation. thus, one job might be higher gamble than another one, evening if the job doesn ’ deoxythymidine monophosphate involve drive. Do n’t try and fiddle your job claim just for cheaper premiums, though. If you ’ rhenium catch, your insurance company might not pay out if you need to claim. You may besides find you wo n’t be able to get cover in the future. Honesty it the best policy – choice a job entitle that most accurately reflects what you do. For more data, check out our guidebook on job titles and car insurance .

Your car’s value
You normally pay higher premiums for your car if it ’ sulfur more valuable, as the parts are probably to be more expensive to repair or replace. Pricier cars are besides more likely to be stolen .
Read our tips on how to get cheaper car insurance for more ways to save .

Am I paying a car insurance loyalty penalty?

If your car indemnity has gone up for no reason you may wonder if you are being charged a loyalty punishment for not switching .
previously, indemnity companies have been known to increase prices on reclamation to subsidise dicker rates for new customers. This exercise, which is known as ‘ price walking ’, has now been banned by the Financial Conduct Authority ( FCA ). It should mean that every driver pays a premium based on the hazard they present. Those renewing may see less of an increase as a resultant role, but rates for new customers might not be thus competitive .
distillery, tied if you find your refilling quote international relations and security network ’ t excessively bad, you ’ re hush likely to save money by comparing cable car indemnity quotes .

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Why is my car insurance so high?

If your car policy has jumped up over the stopping point year, this is normally to be because you represent a greater risk to the policy company .
This could be down to any phone number of factors including :

  • Your age – younger, inexperienced drivers are more likely to be in an accident
  • Where you live – crime rates in your area could impact on your car insurance costs
  • Your driving history – if you’ve made previous claims or been in several accidents you’re likely to pay more
  • The car you drive – pricier cars cost more to insure

Are there any other reasons why the cost of car insurance is so high in 2022?

There are a total of reasons conspiring to keep cable car insurance costs high.

  • A cut to the Ogden rate, which determines compensation payments, from 2.5% to 0.25% has increased payouts for victims, but also increased premiums as a result.
  • Claims are becoming more expensive with a rise in keyless car crime.
  • Uninsured drivers – according to the Motor Insurance Bureau they add £30 to every car insurance premium.

How do I cut my car insurance costs?

Although you can ’ t control many of the factors that might be keeping your cable car policy costs so high, that doesn ’ metric ton necessarily mean you can ’ metric ton cut your bill .
To keep your costs down, try the adopt :

  • Shop around: compare car insurance quotes to find the best value cover- this is the best way to cut costs
  • Don’t auto-renew: when your policy is up for renewal, don’t assume your quote is the best you can get. Shop around each year
  • Don’t overestimate your mileage: the larger your estimated mileage, the more you might pay
  • Increase your excess: by agreeing to pay more towards the cost of a claim you could reduce your premium. Just make sure your car insurance excess remains affordable
  • Think about a black box policy: Younger and less experienced drivers could save a lot by agreeing to having a black box device fitted to their car that monitors your driving. The safer your driving, the less you pay.

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