Car insurance is a must-have for anyone who owns a vehicle. One of the factors that determine your annual insurance premium is Car Insurance Groups. Knowing how these groups impact your premium is key to saving money.
Insurance groups range from 1 to 50, with bands 1 to 12 being the most affordable and classified under tax bands A to E. The higher the group number, the more expensive the insurance.
When insurance companies calculate your quote, they look at the group rating of your car model. This rating depends on how likely the vehicle is to get damaged and the cost to repair it. Here are some elements that go into this calculation:
– Security features like locks and alarms, and how resistant the car is to break-ins.
– The cost of the car and the price of replacement parts.
– Fuel efficiency and overall performance.
There are several ways to reduce your insurance costs. These factors, which influence the insurance group, include:
– Having a clean record with few or no previous claims, tickets, or alcohol-related offenses.
– Owning an older, less expensive car, as flashy cars often come with higher insurance prices.
– Living in low-crime areas that have fewer insurance claims, such as the countryside, which generally leads to lower costs.
– Maintaining a good credit score.
– Being over 25 years old, as this usually results in lower premiums.
– Completing a Pass Plus course.
Additionally, other strategies can help you cut down your insurance expenses. For example, an Irish insurance company, 123.ie, found that 87% of men could save money by switching to them due to new equality laws in Ireland.