Research suggests the average cost of car insurance in the UK is around £561 per year, based on data from the Association of British Insurers for the first quarter of 2023. But that doesn’t tell the whole story. Thanks to a range of factors insurers have to take into consideration, prices can vary massively from driver to driver and no two car insurance policies are the same. 

Even two people driving the same model of car may see differences in their premiums and cover for all sorts of reasons.

It goes without saying that the type of car you choose to drive will affect the cost of your insurance, whether it’s because of engine size, power or the perceived risk of theft. A Ferrari, for example, will probably cost more to insure than a Fiat Panda, and there are several reasons for that.

Insurers use car insurance groups to determine how the type of car you drive impacts the price of your premium. Generally, the more expensive, powerful, and rare your vehicle, the higher the insurance group it will fall into, and the bigger impact it’ll have on the cost of your premium.
  
Factors that affect car insurance group placement include the likelihood of an accident (statistically speaking), the size of the car’s engine, how much it would cost to replace, and the average price of parts and repairs for your specific vehicle.