Car Insurance groups explained!

Car Insurance groups - explained!

Posted by We Are Marmalade on 20 December 2017

The different groups that cars are put into when it comes to insurance can be very confusing. If you’re worried about what it all means then look no further – we’ve got everything you need to know all in one place!

How are the ratings determined?

To make it simple, every car is assigned a group number, between 1 and 50. The higher the number, the higher your insurance premium will probably be. The rating of a car's insurance group is based on a number of things:

heartRepair costs and times

If your car doesn’t cost a lot to repair, and can be done within the hour then the group for this car will be lower. However, if it is nearly impossible to source parts for your car and may take mechanics days or weeks to repair, then this will bump up the insurance group and therefore the cost of your insurance.

pound Car value

The cost of your car from new, also informs the decision of insurance group. Your insurer needs to know how much it would cost to replace, in the case of it being a total write off.

trophy The performance

If you want to keep your insurance costs low, it may not be the best idea to buy a car that goes from 0-60mph in around 2 seconds.

protect Safety and security

Have you ever applied for insurance, and been asked if your car has locks, alarms and immobilisers? This is to determine how safe your car actually is. While not all insurance companies take this into account, it’s worth keeping in mind – the more security the lower the premium could be.

increasing-insurance-premiums

It’s not the be all and end all

Whilst the insurance group of your car is taken into account, it’s not the biggest factor. Your car may be in the lowest insurance group, but there are a few things that will make the price bump up.

Where you live

A common misconception is that it's only where the car is parked overnight that matters, however, that is not the case. If you happen to live in a built-up area, if there is more traffic or more car accidents then this, unfortunately, will affect the price of your insurance, as it is all down to the risk value. Even if you’re surrounded by brand new Mercedes and Jaguars, this can also be taken into consideration – as it is more likely someone will try and steal the cars from your area.

Your driving

If you’ve had claims or accidents in the past, this will also affect the price of your insurance. You should disclose all claims and convictions at the time of application so that you are offered a correct price for your policy. If you decide you don’t want to offer up this information, insurers will be able find out anyway. There is a huge database with every claim and conviction, so whilst your word is taken in good faith if you haven’t disclosed anything that is needed – you may end up with a larger premium, or even having your policy cancelled. So, the moral of the story is – honesty is the best policy.

Choosing a car

Buying a car comes with a lot of questions - insurance being just one of them! If you're on the hunt for some new wheels then our Cars for Young Drivers offers a fantastic selection of cars in low insurance groups, with a year's tax included, and 12 months' FREE insurance on most models - that should help with the decision making!