We use cookies to give you the best possible service on our website. If you continue, we'll assume you're happy for your web browser to receive all cookies from our website. See our cookie policy for more information on cookies and how to manage them.

Your car insurance price explained

There are lots of different factors that affect your price. Some are specific to you and others are as a result of our constantly changing world. We use our experience and expertise to analyse these factors, and calculate an insurance price that’s specific for you. We are continuously reviewing our prices. Our view of how to price each policy may differ from other insurers.

There are numerous factors specific to you that we use in calculating your price.

Since 2015, the average car insurance price has increased

We've broken this down to help explain what makes up the average price:

78
%
Claims costs
the amount we pay out in claims
10
%
Operating & marketing costs
costs such as online support
10
%
Insurance Premium Tax
2
%
The profit
that Quote Me Happy makes

As you can see, claims make up the biggest part of the average price so here's a breakdown of the cost of car insurance claims:

49%Third party personal injury
e.g.whiplash claims
22%Own car damage
2%Windscreen damage
23%Third party car damage
3%Theft
1%Fire

How far you drive

If you’re on the road more, you’re more likely to make a claim, as you’ll be driving more miles. Also, the nature of your journeys could affect your price. For example, if you use your car to commute to work when traffic is busy, insuring your car may cost more than if you only used your car socially.

Where you live

We’ll take the neighbourhood you live into account when we’re working out our premium. We assess each postcode and address individually, looking at claims, traffic, theft and malicious damage together with the frequency of accidents in your area. More accidents tend to result in more claims, so it could cost more to insure vehicles in those areas.

The car you drive

The kind of car you drive could lead to a different price. We look at all cars individually, using our industry experience and looking at the make, model, the age of the car, fuel type, transmission and engine size to determine the price you pay.

Your No Claim Discount

If you don’t claim, that tells us you’re a safer driver, and we factor that in to your price.

Your previous claims

Before we generate your premium, we look at your claims history, including accidents and/or claims in the last four years. For an additional cost, you can protect your no claim discount (NCD) and reduce the impact that a future claim could have on your next renewal price.

Your driving convictions

We consider your driving convictions to help determine your price. Our experience shows that people with driving convictions are more likely to claim, and this is why your price is likely to increase.

Who will drive your car

When reviewing your price we consider the drivers age, convictions and claims experience. Statistics show that younger drivers are a higher risk and it is therefore more likely to cost more.

Severe weather

We all know how extreme weather can affect the UK. Prolonged periods of cold weather or rain can increase the amount and severity of claims that we receive. Ice and wet weather can lead to more accidents as people don’t always change their driving behaviour for the conditions. Like other insurers, we regularly review the likely level of future claims costs resulting from severe weather.

Parts and repair costs have gone up

It’s getting more expensive to buy car parts and pay for repairs, which increases the cost of providing insurance and the price you pay.

Change in the nature of claims in the market

If the variety of claims we receive changes, our customers’ prices will also change. For example, the number of personal injury claims including whiplash have risen significantly over the last decade, and this drove the cost of car insurance up across the market. We estimate how much we’re likely to pay in claims in the future, before incorporating this cost into customers’ prices. Third party claims also have an affect.

Changes in the law

All insurers have to meet government and industry regulators’ rules. When new laws or regulations are introduced this can sometimes affect the price we charge. For example, in the 2015 Autumn Statement, the government proposed to remove compensation for minor whiplash and remove lawyers from minor injury claims. In 2017 we intend to pass on 100% of the savings from these reforms to our customers. Future legislation could have similarly wide-ranging impacts.

Change in the number of claims in the market

We settle thousands of claims each month. If the number of claims increases, for example due to extreme weather events, this might increase our costs, and could lead to higher prices.

IPT increase and other costs

Every price includes a contribution towards administrative and running costs, such as staff and buildings, as well as Insurance Premium Tax (IPT). Throughout 2015 and 2016 The Government announced increases in IPT from 6% to 10%, and prices rose to allow for this increase. The price our customers pay includes some costs which go towards providing the services available, such as our UK based claims team, and online customer support, as well as investing in future products and services. Our self-service insurance means you manage your policy online which means we keep our costs low and pass these savings on to you.

Your home insurance price explained

There are lots of different factors that affect your price. Some are specific to you and others are as a result of our constantly changing world. We use our experience and expertise to analyse these factors, and calculate an insurance price that’s specific for you. We are continuously reviewing our prices. Our view of how to price each policy may differ from other insurers.

There are numerous factors specific to you that we use in calculating your price.

In 2015, the average home insurance price increased

We've broken this down to help explain what makes up the average price:

67
%
Claims costs
the amount Quote Me Happy pays out in claims
18
%
Operating & marketing costs
costs such as online support
10
%
Insurance Premium Tax
5
%
The profit
that Quote Me Happy makes

As you can see, claims make up the biggest part of the average price so here’s a breakdown of the cost of home insurance claims:

29%Water leaks
11%Fire
5%Frozen pipes
16%Storm
10%Accidental Damage
e.g dropping a tin of paint on the carpet
5%Subsidence
12%Theft including burglaries
8%Flood
4%Other

Number of bathrooms

‘Escape of water’ is one of the biggest types of household claims. More bathrooms mean more pipework. More pipework means a greater chance of something going wrong – it is also more difficult and costly to trace where an escape of water originates from within your home.

Where you live

We rate each postcode and address individually and this will reflect the price you pay. Several factors are taken into consideration including the average claims costs together with the future claims we expect to see in your area. Increased claims will mean that it may cost more to insure your home in particular areas.

How secure is your home

An alarm doesn’t always lead to a lower price; even if it’s a condition of your cover. So, depending on the crime levels where you live or if you want to insure your home for a large sum; we may ask about alarms and locks, but this might not result in any further reductions in the price.

How busy is your home

Someone’s in during the day.
Being at home more during the day might put you at a lower risk of theft. However, it does mean there’s more chance of other claims, such as accidental loss or damage, fire, or plumbing problems – which could increase your price.

Household numbers

The number of people living in your house has a big impact on prices, as more people means more belongings and more potential claims.

Your previous claims

To generate your price we take in to consideration your claims history which includes accidents, claims and or losses in the last five years.

Type of building

We assess detached, semi and terraced houses differently, just as we do flats and other types of homes.
There are lots of reasons why. For example, terraced houses suffer less subsidence, so may cost less to insure than a semidetached one in a high risk subsidence area, regardless of its size or value.

Building materials

The way your property’s been built is likely to affect your price. Mainly, it comes down to the fire risk. As a result, timber framed and slate roofs will see higher prices based on their potential fire risk.

How the world around you affects the price

Explore the features in detail below

Severe weather

We all know how extreme weather can affect the UK. Prolonged periods of cold weather or rain can damage homes – most often resulting in burst pipes. However, it’s flooding claims that have really risen over the past few decades and, like other insurers, we regularly review the likelihood of future claims resulting from it.

Repair costs have gone up

From TVs to tablets, state-of-the-art kitchens to lighting, the products in your home are getting evermore expensive. Naturally, it’s also getting more expensive to fix them, which increases the cost of providing insurance and the price you pay.

Change in the nature of claims in the market

If the variety of claims we receive changes, our customers’ prices will also change. For example, leaking pipe claims averaged £2,500 in 2015. If that figure went up or down, it’s likely home insurance prices would too. We estimate how much we’re likely to pay in future claims, and incorporate this cost into customers’ prices. Escape of water makes up a large part of your premium.

Number of claims

If the number of claims increases significantly, for example due to extreme weather events, such as floods, this can lead to higher prices. Our claims lines are available 24/7 and we’re proud to accept over 93% of claims.

Insurance Premium Tax (IPT) increase

Every price includes a contribution towards administrative and running costs, such as staff and buildings, as well as Insurance Premium Tax (IPT). Throughout 2015 and 2016 The Government announced increases in IPT from 6% to 10%, and prices rose to allow for this increase.

Other costs

The price our customers pay includes some costs which go towards providing the services available, such as our UK based claims team, and online customer support, as well as investing in future products and services. Our self-service insurance means you manage your policy online which means we keep our costs low and pass these savings on to you.