If you want to go directly to another section of our guide to car insurance, you can click on one of the links below:

Part 1 - Car insurance explained
Part 2 - Where your car insurance premium goes
Part 3 - Liability and legal requirements
Part 4 - Car insurance jargon buster
Part 6 - Optional extras
Part 7 - Cutting the cost of your car insurance
Part 8 - Shopping around for the best car insurance quote

We all know that car insurance costs can vary greatly. However, what determines these differences? Our guide will explain the contrasts in car insurance expenses.

Why does it cost so much?

· Age/sex – Younger drivers and learner drivers are less experienced and therefore considered more likely to be involved in an accident. Some companies now also offer lower premiums for women, who statistics have proven are involved in fewer accidents than men.

· Insurance Group – Most cars are given an insurance group ranking based on the level of risk involved with each car type and group (often based on likely repair costs). Generally, high-powered performance cars will be in the highest group (up to ‘20’), whereas a small car will be generally lower ranked and therefore should receive cheaper car insurance.

· Cost of vehicle – If you drive a classic or performance car you can expect to pay a higher premium as these cars generally cost more to repair than others.

· Engine size – The more powerful the car the more likely it is to be involved in a high-speed accident.

· Your occupation – If you are driving as part of your job you are more likely to be involved in an accident than someone who, for example, only drives at weekends.

· Where you live – Higher density of traffic and higher crime rates can make your car more susceptible to an accident or theft respectively.

· Your history – The more accidents you have, the more expensive your cover is likely to be.

Now move on to part six to decide which additional benefits are right for you.