Drivers have been warned that a certain type of driving licence can add over £1,000 extra onto their car insurance.
While driving gives you the freedom to get to A to B, it also comes at a cost. Along with road tax, MOT, petrol - insurance adds up to a hefty total of owning a car. Unfortunately some people will find their insurance more expensive that others.
Insuring your car is an expense you can’t avoid, however, research from GoodBye Car has found that it’s more costly for some than others and it's something to watch for if you have a new car. This comes as a new law has been put in place to tackle the back log of driving licence applications.
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The motoring experts looked at the average insurance price of a typical British driver and compared quotes using Compare the Market. The driver’s profile was created using sources including the Office for National Statistics and NimbleFins.
Here are seven factors that can affect the cost of insurance.
Employment Status
Disabled and retired drivers pay almost double that of those in employment. While risk is surely a factor that goes into setting insurance prices, it’s disappointing to find that arguably the most vulnerable in society are charged more for their car insurance.
A person of retirement age can expect to pay almost double that of a homemaker, while those who are not employed due to a disability or illness will pay over £830 more for their car insurance.
Education
Student nurses are charged the most for car insurance. It isn’t a surprise to learn that nearly all students have a higher insurance price than those in employment.
But what is unusual is that many of the students that you would typically consider to be more responsible are charged higher prices. For example, a student nurse living away from home can expect to pay almost £400 more than an undergraduate student living in uni accommodation. Similarly, an undergraduate student living at home will be charged just over £250 more than a school student.
Driving licence type
EU licence holders are charged over £1,400 more for car insurance. It stands to reason that a full UK licence will result in cheaper car insurance in the UK compared to an EU licence – but the price gap is significant, with EU licence holders being charged over £1,400 more than UK full licence holders.
Again it stands to reason that car insurance for those with a UK provisional licence is more expensive than those with a full licence, but it’s surprising to find that UK automatic licence holders are expected to pay almost £700 more. With the change to electric vehicles that are all automatic, this discrepancy in price appears outdated.
Additional driving qualifications
Additional driving qualifications can increase your car insurance quote by over £450. Those that undertake additional driving qualifications may be honing their skills on the road, but instead of being rewarded for their extra knowledge, they can expect to pay over £450 more than a driver holding a standard UK licence.
Medical Conditions
Medical conditions or disabilities can increase car insurance by up to £865.
Reportable medical conditions or disabilities can increase the cost of your car insurance If the DVLA is aware of your medical condition or disability, you’ll be expected to pay an additional £460. If the DVLA hasn’t been made aware, the cost rises by another £405. However, there’s a surprisingly small difference between those with a restricted licence and those that haven’t made the DVLA aware. If the DVLA is aware and has restricted your licence, you only save £25 compared to if you’d never declared your condition or disability at all.
Previous insurance policy
A bad insurance policy history can cost you over £1,000. If you have ever had an insurance policy declined, cancelled, voided or had special terms imposed, it could cost you over £1,000 to insure your car.
A spotty history with car insurance tips the insurance company off that you may be an unreliable customer, and they impose a large penalty for this risk.
Criminal convictions
Those with criminal convictions can see an extra £1,000 add to their car insurance
While it’s expected that motoring criminal convictions would result in a much higher cost for car insurance, unspent non-motoring-related criminal convictions will also push prices up. The penalty for any criminal conviction is a rise of over £1,000 to insure your car.
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