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The Cost Of Insurance

Why is my car insurance more expensive this year ?
  • Insurance premiums have increased significantly across the market this year due to the impact of inflation on car repairs and the shortage of replacement vehicle parts.
How insurance premiums are calculated.
  • Hughes Insurance is a Broker, which means that we work with a panel of insurers who offer a range of covers and prices and we will offer you our best price for your insurance quotation.
  • When you buy a policy through Hughes, your insurance will be underwritten by one of our panel members.
  • When you get a quote with Hughes, our panel members will each return a price, and we will offer you our most competitive price while also ensuring it meets your needs.  Insurers set their prices based on a range of factors that influence your likelihood of making a claim, and the possible cost of a claim.
Some examples are:
  • The car you drive: Cars are grouped into categories based on a range of factors including their size, value, desirability, and cost of their parts for repairs.
  • Your age and driving experience: These factors can influence the insurance premium you pay.
  • Your driving history: As you build up experience and your No Claims Bonus, your insurance premium will reduce over time.
  • Where you live: Insurers rates are based on postcodes and addresses, and the history of claims in your area.
  • Where you keep your car, and how secure it is.
  • The number of miles you drive in a year: Mileage can influence the insurance premium you pay.
  • Your occupation: Your driving patterns are likely to be influenced by the job you do, such as the hours you drive, and this may impact your overall quotation price.
  • The other drivers named on your policy: The driving experience and driving history of your named drivers is also factored in to the insurance premium you pay.  For example, if the named driver has had any claims or convictions.
  • The cost of parts and labour: As the costs of parts and labour rise, insurance premiums will also increase in line with this to cover the cost of potential claims.
  • Insurance premium tax (IPT): The government sets IPT and this can change.
  • Regulatory changes: Changes made by the government and regulatory bodies, for example, changes to the regulation around payouts for personal injury claims.
  • Insurance claim trends: General patterns such as traffic levels, volume of claims, and cost of claims are all factored in to insurers prices.
  • Voluntary excess: If you opt for a higher voluntary excess, it may bring down the cost of your insurance.

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