The way car insurance premiums are worked out is partly determined by the car insurance group that they fall into. In the UK, there are in total 50 car insurance groups. These will band cars from the ones that are cheapest to the ones that are dearest to insure. This is certainly the system that one sure insurance will use to work out the premium for your car insurance policy determining how much you pay for car insurance.
How Much You Pay For Car Insurance: What Makes a Car More Expensive to Insure?
So, factors that make a car more expensive to insure will include how powerful it is, how expensive or rare the car is, and how much the repairs are likely to be for that make and model of vehicle. With luxury cars that are larger for comfort or high-performance cars, the engine size will generally make the car more expensive to insure.
New car values will be a guide for insurers. Invariably lower-priced parts mean that a car finds its way into a lower insurance group. A list of 23 common parts will be used in determining this. Different part costs will be compared against one another. Longer repair times will also influence how much a vehicle will cost to repair and be a key consideration of insurers.
To decide whether a car is a high-performance vehicle will be not just about its engine size, as a van would have a higher engine size, but also be about acceleration and the top speeds possible with a particular car. There is no doubt that high-performance vehicles are a greater risk to insurers. Past claims have provided proof of this. There are reasons for this, too. One is that the types of people owning these vehicles will have a love of speed and it is the speed that will likely create more damage where accidents do occur. That is write-offs as opposed to minor vehicle repairs, meaning that the full cost of a vehicle is funded by an insurer, less a comparatively small excess paid by the policyholder.
It is not all bad news with the more expensive vehicles in terms of their grouping because they can often come with safety features that can also lower their group. These will include AEB (autonomous emergency braking). Bumper compatibility in terms of alignment and structure can also mean a lower insurance group.
In terms of vehicle security, more protection will also come as standard with the more luxurious vehicles and so this can reduce insurance. They will likely be fitted with high-security door locks in most cases. You should, however, be aware that in exchange for these, which will lower car insurance, it will cost you more should a key fob be lost.
So, a lot goes into working out an insurance group and deciding what makes vehicles less or more of an insurance risk compared to another when it comes to the risk of accident, fire, or theft.
Who is Responsible for the Car Insurance Groups?
The system of rating cars by groups when it comes to insuring them is run by a research institution the insurance companies all pay for. This is just for those companies that are signed up to it, of course. Most insurers are as it is, after all, useful in calculating premiums in terms of the likely risk owners of certain makes and models of vehicles will present.
It is a good idea to seek out an insurance group checker online to determine your insurance group before purchasing the vehicle if you are on a budget. Also, obtaining an insurance quotation in advance of purchase is a good idea. It may well be the reason why the previous owner is selling the vehicle – they cannot keep up with the insurance premiums. Buying a car second-hand can, after all, mean that performance vehicles can be purchased with some affordability. But then, you also need to consider how much replacing the parts will be, how much more fuel it will use, and what the insurance cost will be. It is therefore advisable not to match these higher performance vehicles with younger drivers, as a parent, and try to persuade your son or daughter in the early years of driving to go for a vehicle with a smaller-sized engine, as well as thinking of the insurance cost.
Choosing a Vehicle
So, what car should we go for to save on our insurance premium?
If you are a new driver, it is sensible to choose a car that you can better handle while you gain experience. This means going for a smaller car, which will invariably have a smaller engine. This then almost automatically puts it into a smaller insurance group. It is a good combination for the younger driver who pays more insurance already because of their age and assumed inexperience.
Avoid choosing vehicles that are larger than you need, as this will keep insurance premiums down. It is amazing how many people you see driving around in large vehicles that rather surprisingly do not have a family to have to transport around. This situation is costing them more in insurance and fuel bills.
Be prepared that, if you go for high performance, it will cost you dearly in insurance premiums, no matter how good a driver you are. You will pay for the insurance record of other drivers of such vehicles. Think carefully with your vehicle choice and just why it is that you want such a vehicle. Having said that, there are many advantages to buying a high-performance vehicle. Insurance is only one aspect of our decision, although an important one.
In conclusion, know what makes your car more expensive to insure and how much you pay for car insurance by thinking about the above when making your vehicle choices. Insurance groups matter and are directly related to what you pay in terms of insurance premium.
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