REVEALED: How your lifestyle really impacts your car insurance
13/11/2024
The real impact lifestyle factors can have on car insurance premiums have been revealed – from marital and residential set up, to the number of children drivers have.
New data from Quotezone reveals the factors leaving households most out of pocket.
According to the experts, single people, those with more than two children and those with no driveway, are likely to be experiencing the biggest financial hit when it comes to car insurance.
Insurance companies use lifestyle factors to tailor car insurance quotes to each individual – in order to create a more accurate risk profile for potential policyholders.
And whilst it’s widely understood that elements such as driving habits, age, occupation, and location play a significant role in determining premiums, insurance experts at Quotezone say that marital status, residential set up and even the number of children you have can also have a significant impact.
Marital status can actually alter the annual price of insurance, the average single person aged between 35 and 44 will likely pay around £45 more than a married person of the same age, as insurers often view single drivers as more risky.
Families with one child could pay around £92 more annually than those with no children, with premiums typically increasing with each child thereafter – from as little as £5 to as much as £181 on average per additional child per year.
When it comes to where drivers live and how they store their car, those with a private driveway could save £268 compared to those that park their car on the road outside their house.
Working from home is another significant lifestyle factor that can produce big savings. Those that are working from home could save £331 compared to those that commute into the office, with a social and commuting policy averaging £1,127 compared to a social only policy at £796.
Commenting on the data, savings expert and Quotezone CEO Greg Wilson, said: “Insurance providers are increasingly recognising that lifestyle factors play an important part in their risk analysis and forming an accurate picture of customers changing lives and their associated risk potential.
“It’s worth noting that each person’s insurance premium is quoted based on their individual circumstances, whilst analysing averages is useful to help find savings, each person’s premium and potential savings will vary.
“Marital status, residential set up, working arrangements, and even the number of children a driver has can significantly influence car insurance premiums.
“For example, married couples often benefit from lower rates because insurers could perceive them as more stable and less risky than single drivers. Similarly, families with children tend to see a gradual increase in their premiums, reflecting the added risk associated with more passengers in the vehicle.
“This nuanced understanding of individual circumstances allows insurers to create more tailored quotes, ultimately leading to fairer pricing for all policyholders.
“Fortunately, drivers can still save money on their insurance premiums by shopping around for the best deals, as prices can vary significantly between insurers.
“It’s also possible for everyone to bring car insurance premiums down by maintaining a good driving record to build the no claims bonus, reviewing excess amounts, increasing vehicle security and reducing mileage – also opting for smaller cars with smaller engines should create substantial savings.”
Lifestyle factors that could impact your insurance:
1.Marital status
Your marital status can alter the price of your insurance by as much as £236. Single people are hit hardest as the average cost of an annual policy is £1048, which is a whopping 29% more than divorced people who typically have the cheapest annual premiums at around £812.
Insurers often view married couples as more stable and less risky compared to single drivers and statistically, married drivers tend to be involved in fewer accidents and make fewer claims, resulting in cheaper premiums.
| Marital Status | Age 35-44 |
| Single | £1048.67 |
| Civil Partnership | £1024.80 |
| Married | £1003.78 |
| Cohabiting | £881.61 |
| Separated | £856.26 |
| Divorced | £812.54 |
2.Number of children
The number of children you have can also impact your car insurance because it influences your risk profile as a driver. Drivers with children, especially younger ones, may face more distractions in the car, increasing the likelihood of accidents. Having children may also mean more driving, such as school runs, extracurricular activities, or family outings, leading to higher mileage which statistically raises the risk of incidents.
As a result, premiums generally increase with the number of children you have. Families with one child can pay around £92 more annually than those with no children. Premiums typically increase with each child thereafter – from as little as £5 to as much as £181 per additional child per year.
| Number of Children | Average Annual Premium |
| 0 | £931.60 |
| 1 | £1,024 |
| 2 | £972.78 |
| 3 | £1,079.41 |
| 4 | £1,138.66 |
| 5 | £1,320.05 |
| 6 | £1,324.97 |
| 7 | £1,443.69 |
3.Vehicle usage
The more you drive and the more time you spend on the road in riskier conditions, the higher your car insurance premiums will likely be. For example, if you use your car to drive to and from work or school, insurers see this as high risk because commuting often happens during peak traffic hours, increasing the likelihood of accidents.
Premiums for social and commuting usage policies are typically around £330 more than social usage only policies (£1127 compared to £796), whereas commercial travelling policies can be as much as £2044.
Those people working from home and using their cars for social only, could enjoy up to £330 of savings, compared to those who use their cars to commute to work.
| Residential Status | Average Annual Premium |
| Commercial travelling | £2,044.50 |
| Business for all drivers | £1,298.86 |
| Social, commuting | £1,127.11 |
| Social | £796.34 |
4.Parking arrangements
The safer you can park your car, the cheaper your car insurance premium is likely to be – this normally means the closer to your home, the better. Premiums for on the road and parked away from home tend to be much more expensive than parked on a private driveway, locked in the garage or under the carport next to your front door.
| Where Parked Overnight | Average Annual Premium |
| Road away from home | £2,298.21 |
| Locked Compound | £1,640.65 |
| Secure Car Park | £1,311.16 |
| On the road | £1,136.34 |
| Residential Parking | £1,049.60 |
| In a locked garage | £1,049.15 |
| On a private driveway | £868.04 |
| Carport | £799.99 |
Quotezone helps millions of UK drivers every year compare car insurance quotes and find essential savings across all sorts of products including car, van and motorbike insurance.
Reference: The Quotezone data is based on a sample of 100,000 car insurance policies from January-September 2024.
This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.