Manual or automatic? It’s a choice that goes beyond driving style. Each has its own perks and quirks. Manuals are often seen as more engaging to drive and cheaper to buy. Automatics, on the other hand, offer ease and comfort – especially in stop-start traffic or for those with mobility issues.
But when it comes to insurance, does your gearbox really make a difference? Let’s look under the hood of how premiums are calculated.
Which costs more to insure?
Is it true that automatic drivers pay more for insurance? On average, yes. But the size of the gap depends on who you ask.
A popular comparison site had the average premium for a manual car in the UK is £360, while it was £499 for an automatic. That’s a 39% difference.
One insurer found that premiums for automatic cars were 5.63% higher. What’s more, claim frequency for automatic drivers reportedly 46% higher.
But another had an 86% difference, with the average premium for a manual licence holder at £696, while for automatic licence holders it was a staggering £1,296.
It shows just how valuable it is to work with a broker – someone who doesn’t just look at one number but takes the time to understand you. A broker, like Howden, can match your personal circumstances with a wide range of insurers, so you get cover that’s not only competitive, but actually right for you.
Why automatics can cost more
Let’s start with the basics. Insurance premiums are calculated using two key factors:
- Your likelihood of risk
- The cost of getting you back on the road
Automatic cars tend to be more expensive to repair. Their gearboxes are more complex, and replacement parts can be pricier. That’s especially true for older drivers with larger engine sizes, say, over 1.4 litres.
So if you’re driving a high-spec automatic, insurers may see you as a higher-cost risk. That doesn’t mean you’re a bad driver; it just means your car could be more expensive to fix.
The claims angle
There’s also a difference in the types of claims insurers see from automatic drivers. One common scenario? Low-speed rear impacts.
In an automatic, when you take your foot off the brake, the car moves forward. That can lead to bumps in traffic or car parks – especially if you’re not used to the way automatics behave.
This is different to rear-end collisions for manual drivers, where misjudging braking distances or late reactions are more common. So while both types of drivers have risks, they’re not the same.
Experience matters
Another factor that’s often overlooked? How long you’ve had your car.
Drivers who’ve owned the same vehicle for years tend to be more familiar with its size, dimensions and quirks. That familiarity can reduce the likelihood of accidents – and insurers take that into account.
If you’ve recently switched to an automatic, your premium might reflect that adjustment period. It could also reflect other factors associated with that car, such as the make, model, and age. So don’t leap to buyer’s remorse – stick with it and your costs could come down over time, especially if you have a lengthy No Claims Bonus.
Does that mean should you avoid automatics?
Not at all! Like everything in life it’s all about personal choice. Automatics are becoming more common, especially with the rise of electric vehicles, which don’t have traditional gearboxes at all.
And while some automatics can cost more to insure, it’s not a universal rule. Your age, driving history, location, and car model all play a part.
In fact, some insurers don’t differentiate at all between manual and automatic. Others might offer better rates for automatics if they come with advanced safety features.
How to keep your premium down – whatever you drive
- Choose a car with good safety ratings and low repair costs.
- Build up your no-claims discount.
- Avoid unnecessary extras on your policy.
- Consider telematics if you’re a careful driver.
- Keep your car secure, with steering wheel locks, alarms and immobilisers.
Need help finding the right policy?
Your gearbox isn’t the only thing driving your premium. It’s part of a much bigger picture – one that’s unique to you.
At Howden, we look at the full story. Whether you drive manual, automatic, or something in between, we’ll help you find cover that fits. Get in touch with your local Howden branch or visit us in person to discuss your insurance needs.
Sources: Cinch, Go Compare, Admiral Insurance
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This is a marketing blog by Howden Insurance.