Why Changing Your Vehicle Can Increase Your Premium
When you update your policy with a new car, Marshmallow recalculates your premium based on the details of the new vehicle. This recalculation often results in a price increase due to how insurance risk is assessed.
Factors That Influence Premiums After a Vehicle Change
Several aspects of the new vehicle can contribute to a higher insurance premium:
1. Vehicle Value
Higher-value cars cost more to repair or replace, increasing the risk for insurers.
2. Engine Size and Performance
Cars with larger engines or faster acceleration are often considered riskier to insure.
3. Safety and Security Features
A lack of modern safety or anti-theft features may increase your premium.
4. Car Type and Usage
Sports cars, high-end models, or cars commonly involved in accidents or thefts are flagged as higher risk.
5. Insurance Group Rating
All cars in the UK are assigned an insurance group (1 to 50). The higher the group, the more expensive the insurance.
Example: Switching from a 2012 hatchback to a 2022 SUV might increase your premium due to the higher vehicle value, advanced electronics (costlier to repair), and increased theft risk.