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Insurance groups explained

If you have never had the insurance group for cars explained to you, you may not be aware that whoever you insure your car through, certain models of car will always cost more to insure than others. Finding out about car insurance groups before you purchase a new car will prevent any nasty surprises when you come to buy insurance.

What are insurance groups?

When you take out insurance for your car, there are lots of things the insurer will look at in order to determine your premium. Most people are aware that factors such previous accidents and how long you have been driving for are taken into consideration, however fewer people are aware of the various UK insurance groups that are used to determine how much you should pay.

An insurance group for cars lumps together cars with similar characteristics by the Group Rating Panel, made up from various people within the insurance industry. There are currently fifty groups that cars fall within, based upon things such as the safety of the vehicle, security features, how much the car costs new and the cost of repair, in terms of parts, labour, and time taken.

How insurance groups work

Insurance groups are not the only thing used to work out the cost of your insurance. Whilst it is important to bear in mind the various insurance groups, it is important to understand that insurers use them along with other factors when determining your premium. Even though a car could be in a low group because it has a relatively low cost of repair, if the insurer’s past experience shows that the particular model has a higher than average probability of the owner making a claim, you can expect to pay a higher premium.

Details of the person driving the car will also be used to help determine your premium in conjunction with the insurance group and make and model of vehicle. Even the lowest insurance group cars can be costly to insure if the driver is seen as somebody with a high risk of making a claim. This is why having vehicle insurance groups explained to you before you choose which car to buy is important, as even within the lower groups, a car that is cheap for one person to insure may be significantly more expensive for somebody else.

Cars in insurance group 1

The number of cars in insurance group 1 is fairly small, and you will also need to be aware that there are several versions of each model which could fall into higher insurance groups. Cars such as the Citroën C1, Fiat Panda, Skoda Citigo and Vauxhall Corsa hathback are all popular cars with versions falling into insurance group 1.

Cutting car insurance cost

Before buying a car, ask the dealer what insurance group the car falls into – they should be able to tell you. Alternatively click here and enter the make and model of the car to find out what group its in. Whilst it is true that insurance companies take your previous driving experience into account when determining your premium, the general rule of thumb is the lower the insurance group, the less you will have to pay for your policy.

There are a wide range of companies out there offering car insurance, so shop around until you find the cover that suits you. Whilst cutting the cost will be a big factor when choosing an insurance company, make sure that you look closely as to what is covered – for example, if you live close to your place of work, a courtesy car might not be worth paying extra for, however if you work somewhere further away or difficult to access on public transport, paying a few pounds extra to know that you will have another car to drive whilst yours is being repaired can be worth it for the peace of mind. So always check the policy finer points, after all you wouldn’t take out Travel Insurance and not know what you were and weren’t covered for would you?

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