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Why is my insurance so expensive?
Why is my insurance so expensive?

How insurance premium is calculated

Andy Barnes avatar
Written by Andy Barnes
Updated over a week ago

When you book a car with us you have to use our special insurance that covers peer to peer car sharing. This is not a sales tactic to make you spend more (we earn £0 from your insurance as this goes directly to the insurer), it is because standard motor insurance does not cover car sharing. 

We look at over 30 data points when calculating insurance premium to make sure it is fair so lower risk drivers pay less. We also split out the insurance cost so you can clearly see the amount before you confirm.

There is a number of factors that impact the cost so here is a quick overview. 

Motor insurance market

Insurance underwriters write policies for lots of motor clients and their experience across their markets all impact each other. So even though we may not have many claims here at hiyacar, our pricing may still be effected by their other customers. 


Young drivers statistically account for a higher volume of claims so pricing will always be higher. There is not anything you can do about your age but if you use hiyacar on a regular basis and are safe driver then we will offer incentives.

Driving history

The length of time you have been driving and your history are key factors. If you have been driving for a long time and have a clean licence then your pricing will be lower vs a younger driver with a speeding conviction for example. 


We look at the claims data for every postcode in the UK. This constantly changes so our pricing will move too. If there has been a high number of claims in your area then pricing will go up accordingly and vice versa. 

The car

The car you choose has a big impact on the insurance price. Cheaper value cars are usually offer better value insurance as they are cheaper to repair and usually less powerful so have few accidents. If your insurance pricing looks high then try a cheaper car to see if your cost is reduced. 

Book in advance

For some reason, members who book in advance get into fewer scrapes, so we have priced accordingly. 


Your job title also plays a part. It is illegal to put the false information down but select your occupation carefully making sure it really fits what you do. 

Most of the above is based on historical data that insurers use but we also add layers of our own data to give pricing based on our experiences too. We aim to reward regular, safe drivers by adjusting their insurance premium in their favour as often as we can. 

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