How insurance works

To work out the price of your insurance, we weigh up many factors. Some of these are specific to you, whereas others are to do with the world around you and what’s happening in the insurance market.

Everyone who buys insurance pays into a central pot and, if you make a claim, we pay it out of that pot. If the numbers and costs of claims increase, the pot needs to go further, which means prices can go up.

But whatever happens, we constantly review the way we calculate the cost of car insurance to make sure we offer you the most accurate price.

On this page, we’ve explained some of the factors which can affect your price.

Your car insurance renewal

Before your current policy comes to an end, we’ll send you a renewal invitation. It will show two prices – last year’s price and a price for continuing cover for another year.

As you’re already a customer with us, your price to renew your cover will be the same as or lower than the equivalent price for a new customer. Your price might be quite different this year because of recent changes in regulation which affect all insurance providers.

If the specific cover you have with us isn’t available to new customers any more, we’ll compare your renewal price against the new customer price of the policy which most closely matches yours.

Frequently asked questions

Why isn't last year's price what I paid?

I haven’t made any changes, why has my premium changed?

Does this price include my no claim discount?

Why have I found a better price from you on a price comparison website?

How events affect your car insurance price

total number of claims

Total number of claims

More claims overall in the market can lead to an increase in our costs, and therefore lead to higher premiums in general. We’re very open and transparent about our customers’ claims experience — our average rating left by our car insurance customers was 4.6 out of 5 (as of 9 February 2021).

more expensive repari costs

More expensive repair costs

It’s getting more expensive to buy car parts and pay for repairs. This increases the cost of providing insurance and therefore the price you pay.

changing claims market

Changing claims market

Numbers of personal-injury claims, such as whiplash, have increased over the last decade, driving up the cost of car insurance for everyone. We work hard to predict how much we’re likely to pay in future claims, and factor this into customers’ prices. Third-party claims also have an effect.

changes in the law

Changes in the law

Changes in government laws and industry regulations can affect prices. For example, in 2021 new whiplash reforms were implemented by the government, removing compensation for minor whiplash, and also commission for lawyers for minor-injury claims, during 2021 we have passed on 100% of savings from these reforms to our customers, and will continue to do so.

rising taxes and other costs

Rising taxes and other costs

In 2017, the Government raised Insurance Premium Tax from 10% to 12%, forcing up prices across the market. Your premium also includes costs for customer services, such as contact centres and online support, and the cost of investing in future products and services.

severe weather

Severe weather

Severe cold or wet spells can increase the amount and severity of claims. Ice and water can lead to more accidents and, like other insurers, we regularly review the predicted level of future claims costs resulting from severe weather.

How you affect your car insurance price

Of the hundreds of different factors that we use to price your motor insurance policy, some are more directly connected to you. They also form part of an overall picture of how likely you are to make a claim, and how expensive that claim is likely to be. These play a major role in shaping your price when you first take out insurance, but tend to have less impact on your renewal price. These are the top considerations.

Where you live

Where you live

Your postcode has a major bearing on your premium. We look at claims, traffic, theft and malicious damage in your area. More accidents, so more claims, in your area may drive up car insurance costs.

Your age

Your age

How old you are can have an impact on your price. We constantly review claims stats and apply age-related risk factors accordingly.

Your mileage

Your mileage

How far you drive can affect your price too. There’s not a simple formula here, but it can combine with other factors to build an overall picture of your risk.

Your vehicle

Your vehicle

The make and model are important. If you own an expensive car, it’s likely to cost more to repair and having a desirable car increases the chance of theft. The age of your car is a consideration too.

Who drives your car

Who drives your car

It’s not just your own age and driving history that affects your price — any drivers you name on your policy can have an impact too. 

Your driving history

Your driving history

Our data shows that customers with recent driving convictions and claims, especially in the last four years, are more likely to be involved in an accident or make a claim, and their price will reflect this.

How to manage your policy online

MyAviva is a secure online portal, where you’ll find all the details and documents for your car insurance policy, so you’ll always know where everything is. It’s also where you’ll make changes to your personal information or your policy. You can do this at any time through your laptop, tablet or mobile.


What you can do in MyAviva

  • Renew your car insurance policy
  • Update your details
  • Make changes to your policy 
  • View, download and print policy documents 

Save money on car insurance

Aviva MultiCar

  • Save 10% when you add extra cars. Discount doesn't apply to extra protection
  • Up to five vehicles on one policy. All cars must be registered at the same address
  • You can buy cover for two cars online. To insure three or more, call us on 0800 046 2722