Car Insurance Groups Explained

Car insurance groups explained – Introduction

How are car insurance groups explained? Each car insurance company categorises vehicles using insurance groups. They use this information when giving quotes to requesters. There are many factors to take into consideration when these companies determine the group of each vehicle. The cost of replacement or repair is the most important factor that insurance companies take into consideration. These firms may give you information about what they think is the amount of premium you will pay. You can request this information prior to purchasing the vehicle.

Car insurance groups explained – How are they calculated?

The cost of your policy takes into consideration the rating of the group. This is the most important aspect of all. The ratings of each group different from country to country, but in the UK, the groups are between one and fifty. Cars in the group one pay the cheapest policy; the most expensive policy is for cars in the group fifty. The Association of British Insurers or ABI decides the numbers of the Car insurance groups and the cars that must be in each one of them.

Car insurance groups explained – Factors to consider

The Association of British Insurers uses these factors to determine the status of a vehicle in these groups: The amount of damage that a car would stand in case of an accident and the cost of spare parts are important factors. Clients make a claim when they have a car accident or in case of theft. The time that is required to repair the car is essential for the insurance company.  Some cars take longer to repair than others. High performance vehicles have more probability of an accident than conventional cars. The engine characteristics of a car is a crucial factor. You will need to pay high rates in car insurance for a car that has a fast engine and high acceleration rates.

Car insurance groups explained – More factors

Security is another factor to take into consideration. The standard security features of a car are important.  Car alarms and security systems reduce the probability of theft in cars and other vehicles. Thus, your insurance group can be in the first numbers. For instance, a 2010 Ford Focus with a 1.4 litre engine might be in the group six, and another car of this same model but with a 2.0 litre engine can be in the group 19. It is very useful to know the group of your vehicle. Thus, you can save money when you calculate the future cost of your car insurance. Most of us do not consider the following costs upfront:  fuel costs, taxes and insurance costs. Many times, we do not believe our high bills, but we need to consider these factors every time we buy a new vehicle.

Car insurance groups explained – Final words

These are other important factors:

1.    Cost of the body shell. This is important for some accidental damage repairs.
2.    Cost of the car.
3.    Labour cost. The insurance company performs crash tests for every vehicle.
4.    Repair costs.
5.    Top speed and acceleration of the vehicle.

We hope that having car insurance groups explained helps in your understanding of the factors involved in the cost of your car insurance.