How do the car insurance groups work?
How do the car insurance groups work?

How do the car insurance groups work?

The car insurance coverage is usually charged in different categories of groups. The group starts from 1 which is the cheapest up to 50 which is the most expensive rate.

There are two options which the insurance companies use when charging for their rates. The first one is based on the rates that are set by the Group Rating Panel and the insurance companies can also set up the charges according to their preferences.

What are the cars found in group 1 of insurance?

According to a report presented by the Association British Insurer, the total amount paid for a repair is estimated to be over half of the total amount that is paid in the motor insurance claim. Therefore, the charges for the insurance are defined by what the insurance groups are.

The following are the cheapest cars to insure on sale.

  • Vauxhall Corsa Hatchback.
    This is the most used car by first-time owners especially those who are below 25 years. It is quite easy to maintain since the fuel consumption is low and it also comes with excellent interior design consumption is low, and it also comes with great interior design options and various extras too.
  • Fiat panda.
    What makes this car stand out is the positioning of the gear and the dashboards which are both located in an excellent area for easy access by the driver. This also makes it easy and simple to drive the car, especially by first-time drivers.
  • Citroen C1.
    This is a cheap car that is affordable to many, and it has an engine of 62.8 MPG. The car can be found in different colours plus you may be given one-year free insurance which is quite beneficial to a young driver.
  • Nissan Macra.
    The car is ideal for youngsters since it has great interior and other features that they may find beneficial. Aside from being economical in fuel consumption, the car is also designed with Bluetooth and USB input.

The lowest car insurance group

Although it is quite easy to determine the kind of car models that are easy to insure, the difficult part is determining the group of insurance that is cheap to use. As we saw earlier, the insurer uses the group panel or they can sometimes use their ranging to set up the insurance rates.

There are a few things that you can do to lower your chances of paying a high premium. For example, you can request someone to add you as the benefactor in their policy. But when choosing such method, make sure to select someone who has good driving history and has good driving experience as well. Choose someone who is 25 years and above.

The other method to use is the installation of the black box in the car. The box works by recording all your road trips and the happenings n the road. These records can help the insurance company determine if you are a good driver or not. The box helps in lowering your insurance charges by the company.

How many insurance groups are there?

The groups that are available range from 1 to 50. Group one is the lowest while 50 is the highest and most expensive as well. The high quality and performance cars such as the sports car are the most expensive since they tend to cost more in case the insurance company gets a claim from the owner. Therefore, you may be required to pay high rates for such cars.

According to a report by the ABI, around 50 percent of all the money paid for the insurance premium is used to cover for repair and other damages caused by that vehicle. But there are other essential factors that the insurance look at when setting up the insurance charges.

The following are the cheapest cars to insure on sale.

They include;

  • The damage and the parts cost.
    The amount of money the car will need to get repaired is considered by the insurance company. Also, the availability of the spare parts, their cost is put into consideration. So the cheaper these two factors are to acquire, the lower the rates of the car insurance radium.
  • Repair costs and time.
    If the car takes longer to repair, then it will be placed in the higher insurance group category. The other things in this situation include the kind of paint and other finishes that the vehicle may require in future.
  • The new car value.
    The amount of money that the car sells is also put into consideration since it helps the insurer to gauge the prices of the spare parts of that particular car.
  • Car performance.
    If the car is moving at high speed, it is prone to get damaged easily as compared to a slow-moving car. Therefore, the insurance company also puts into consideration the speed of the car when rating the insurance group.
  • Safety.
    All the cars that are fitted with AEB as the standard are always charged lower in insurance covers since the standard is ideal for reducing the movement speed.
  • Bumper compatibility.
    If your car’s bumper is compatible with the insurer’s criteria, you have an opportunity of getting a low charge as compared to others.
  • Car’s security.
    If your car has various security features fitted, then this may help in reducing the insurance cost from the insurers. Some of the features considered are the security door locks, alarm or even glass etching.

The best used cars which are the cheapest to insure.

The old car models are mainly bought by people between the age of 17 to 25 as their first car. Well, although these cars may cost you less when purchasing, the maintenance services may cost you much more than you had expected. There are constant services required, tax, fuel and also the insurance covers for such cars is also high. But you can still get a good second-hand car that has low insurance rate. Some of these cars are;

  • Peugeot 107 model 2005-2014
  • Ford KA 1996-2006 and above
  • Vauxhall Corsa 2006-2009
  • Toyota Yaris 2006-2011
  • Suzuki Swift 2005-2011
  • Ford Fiesta 2002 onwards

The best cover for the second-hand cars is the comprehensive cover since it takes care of most damages and costs that you may incur in future with the car. Also, make sure to follow all the rules of the road, and drive safely as these are some of the bases that the insurers use when charging their rates.

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