What Goes Into the Cost of Your Insurance Quote?

When you’re shopping around for an insurance quote, you might notice that prices can vary. But why does this happen? Here, we’ll break down some factors that influence your insurance quote to help you understand ways you can manage costs while ensuring you have the right level of cover with INSHUR. 

What makes up the cost of an insurance quote?

Our prices are based on many different data points and are tailored to each driver’s unique circumstances. 

But let’s look at some of the most common factors that go into an auto insurance quote:

• Your Age
  
  Younger and other inexperienced drivers are often seen as a higher risk, due to their lack of driving history and experience.
  
  In time, your No Claims Discount should help to bring your premium down, but until then, you can expect to pay more. 

Note - if you are a younger driver, make sure you check the minimum age qualifications for both our insurance and the platforms you intend to sign up for.  

• Your Location
  
  Where you live and drive plays a role in your insurance cost. Urban areas with higher traffic density, more pedestrians and cyclists, or more reported accidents and thefts may result in a higher premium. This isn’t about penalising anyone, it’s about ensuring you have the right protection based on the risk in your area.

• Your Driving History
  
  As with all insurance policies, your INSHUR price is influenced by any claims or convictions you may have had. Statistically, drivers with recent claims or convictions are more likely to have another accident or claim in the future**. Our prices reflect this.
  
  The good news? If you haven’t had a previous claim, when you come to renew you could be offered a price that’s the same or lower than if you were a new customer quoting with us. 

• Cost of Repairs
  
  Repair costs have soared, affecting prices across the insurance industry. Every driver will have seen their price change one way or another. According to the Association of British Insurers (ABI), repair costs in 2024 were £1.5 billion more than in 2023. This increase was made up (in part) of higher labour and energy costs, and obtaining parts.
  
  Vehicle thefts also remain at a record high*, pushing prices up further as insurers look to recoup their losses.
  
  *according to ABI - check sources at bottom of page 

An Annual Policy Could be More Cost-Effective

A quick note on annual policies vs temporary 30-day policies before we continue. 

If you have a 30-day policy, you could save money by switching to an annual policy. 

An annual policy not only keeps your price the same for a full year, but with our premium finance option, you can still spread the cost of your insurance across monthly payments rather than one up-front payment. With one renewal each year, annual policies can also be simpler and less hassle compared to renewing your policy every 30 days.

Plus, as a new driver to INSHUR, an annual policy allows you to earn your No Claims Discount without a break in cover, meaning you could get a better price when you renew (if you’ve made no claims on your policy).  Drivers who renew their 30-day policy monthly also build No Claims Discount, but only if they renew their 30-day policy 12 months in a row with no breaks in cover. An annual policy means you don’t have to worry. 

Additionally, INSHUR offers a loyalty bonus on annual policies meaning you could benefit even more at your next renewal.

How to keep your costs low when buying insurance

Go green

INSHUR are constantly working on improving our offering to EV drivers, with a focus on making prices more competitive for customers.

For those thinking about going green, this could be a great incentive, knowing we have insurance options for you. 

Dates matter!

Keep an eye on the expiry date of your policy. If you’re a private hire taxi driver or an Uber driver, quoting early, not leaving it until the last minute, could save you money on your premium. 

Adds-ons

And lastly, consider our add-ons. Motor Legal Expenses Insurance (available from June 2025) could save you in the long run if you ever have to make a claim that involves hefty fees. 

Our multi-driver insurance for private hire taxi drivers allows you to add another licensed private hire taxi driver to your policy, so there’s no need for two separate policies on one vehicle. 

Need More Information?

For more details on how insurance pricing works across the industry, check out this guide from ABI.

By understanding what affects your quote, you can make informed decisions to keep your costs as low as possible while ensuring you have the right insurance for your needs.

Access your policy, quote and renew from your online Dashboard.

For any INSHUR specific questions, check out our Helpcentre, available 24/7.

ABI Repair Costs Jump in 2024

Admiral - why has car insurance gone up?

**Think Insurance convicted drivers