Here’s a guide to some of the factors that affect prices from one year to the next, including how your changing needs can cause your premium to go up or down. 

Insurance is all about risk, so insurance providers constantly analyse and assess everything they can to evaluate this risk. This is why it’s important for you to keep the details outlined below up to date via MySaga so we can give you our best price for your current circumstances. 

Type and age of vehicle

Every year older your vehicle gets, it potentially moves into a difference risk category. And if you change your car, this could also affect your price. The make and model, engine capacity, weight, fuel type, transmission, safety features and the cost of repairs are all relevant.

Who's driving your car?

Any change in the number of named drivers or to their circumstances may affect your premium. Your age and the age of any named drivers also change the risk, as driver experience is one of the main factors that determines the price.

Change of usage or occupation

If you use your car for business purposes, you’re likely to pay more for cover, as you may be driving when the roads are busier. Your annual mileage is also relevant – after all, the more you drive, the more likely you are to be involved in an accident.

Policy changes 

If you make a change to your policy during the year – particularly if it’s made towards the end of the term – this could affect your renewal premium in the following year.

Claims and convictions

A loading may be applied to your policy due to the number and/or severity of claims and/or convictions incurred by you or any named driver. Claims within the last five years can still affect the premium along with multiple claims.

Where you live

You’ll normally pay more where the risk of accidents is greater – such as in densely populated areas – or where there are high levels of vehicle crime.


If you have our Saga Plus cover level, your price is fixed for three years. So if nothing changes, your price won’t. Find out more about Saga Plus here.

Changing circumstances in the wider world

There are other influences on the cost of your car insurance that are not a result of anything you’ve done personally. From nationwide and regional statistics to the state of the economy, these external factors all contribute to changes in your price:

Insurance Premium Tax (IPT)

Your car insurance is subject to Insurance Premium Tax, which has doubled to 12% since 2015 and can change with every government budget. 

Local statistics

Newly published data can affect the cost of your car insurance. This might be public information about reported crime figures, traffic data, theft and malicious damage statistics, together with the frequency of accidents in that area.

Cost of repairs

Repairing damaged cars is becoming more expensive as the cost of parts and labour increase. There are also the legal costs associated with handling claims and the size of awards for injury claims and medical inflation.

Operating costs

Insurance businesses have overheads so, naturally, each policy contributes to that. Any increases in the cost of office space, staff wages or operating systems may also affect the cost of your insurance.

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