Car Insurance Group
Auto mobile insurance is protection against financial risk. Car insurance companies devised a risk assessment categorisation for various risk factors. Each category is called an insurance group. Vehicle risk entails the statistical likelihood that any particular vehicle will be in an accident, vandalised or stolen. The higher the incident risk, the higher the financial risk for both the driver and the insurance company. As with any insurance, the higher the risk, the higher your insurance premiums will be. Vehicle risk factors include engine size, top speed, availability and cost of spare parts, repair times and abundance of qualified repair technicians. All these elements and more are taken into consideration when assessing vehicle risk.
Drivers also present risk factors that are based on statistical data. A driver can be involved in more than one insurance group, all of which influence the final rate quote for coverage. Your age, gender, driving history, claims history, mileage and even postal code impact your car cover cost. Motorists who live in high crime areas are more inclined to have their vehicles vandalised or stolen, which translates to higher risk for the insurance company. High-risk neighbourhoods cause higher insurance rates than those in low-crime areas. However, young drivers, mature drivers and senior drivers can influence rates in their favour, nonetheless.
Parking in a secured garage at night will reduce your premiums noticeably. If that isn’t possible, park off the street in a well-lit area. Whether parked inside a structure or under the open sky, using Thatcham-approved security devices like car alarms, immobilisers and vehicle tracking devices can reduce your insurance costs as well. Avoiding accidents and citations may qualify you for a no claims bonus as well. Over time, a no claims bonus can reduce even first-time car insurance rates as much as 70 per cent or more as the driver gains experience and extends a safe driving history.
Risk Groups and Auto Cover Costs
Based on the vehicle risk factor list, above, insurance companies have excellent statistical risk profiles of makes and models of vehicles. Those factors were compiled into a risk ranking list by the Insurance Group Rating Panel. Each vehicle was assigned a risk value from one to 50. Low-risk vehicles have lower numbers, and of course, high-risk vehicles are assigned the numbers near or at 50.
Low-risk cars that usually cost less to insure are the smaller, more fuel-efficient models that have smaller engines incapable of operating at “race car speeds.” Sports hatches, small sedans and minivans are three common, low-risk vehicles. Sports cars and high-performance cars with larger, more powerful engines and that weigh more are much higher on the risk list and can cost significantly more to insure.
When you compare first-time driver insurance quotes online, you will probably see a wide difference between auto insurance quotes: Although every car insurance company has the same statistical data, not all companies place the same importance on elements within that data. Some insurance providers will charge more for a sports car, whilst others don’t look at the car as harshly but stress other factors instead. Some providers offer low insurance rates, regardless of the insurance groups are involved. With most carriers, however, women over 50 years of age are considered the safest drivers and often are presented with the lowest standard in policy pricing. Women motorists and drivers over 50 years old, two separate insurance groups, are the safest groups, and when a driver qualifies both both groups, the savings can be quite nice, all based on statistical probabilities.
Auto Insurance and Theft
The risk of theft or vandalism plays a major role in determining car insurance quotes. If you live in a postal code that has a high crime rate, the risk of damage or theft of your vehicle is elevated: That higher risk translates into higher insurance premiums than if you lived in a low-crime area. However, there are still ways to reduce your vehicle’s risk and your insurance premiums. The best risk reduction comes from parking your locked vehicle in a secured garage at night. The next-best option is to park off the street and use approved security devices. If that’s not possible, park in a well-lit area and use Thatcham-approved devices, such as a car alarm, high-performance locks, immobilisers and vehicle tracking devices. All these methods and techniques can reduce your insurance premiums considerably.
Thatcham is a not-for-profit organisation that researches car security and devises possible solutions that combat vehicle theft. Thatcham partnered with leading insurance companies to create a vehicle safety and security chart that rates cars’ theft deterrence. Those vehicles that are manufactured with above-standard security devices are rated “Acceptable” or “Excellent” and are usually recipients of lower insurance rate factors than those deemed “Deficient.” Some vehicles are so easily stolen that they are rated as “Unacceptable,” and you may not find insurance that will allow driving legally in the UK.
Before you purchase a vehicle, determine the devices on board that are approved by Thatcham to reduce the risk of theft. You won’t pay as much to insure it with even temporary insurance for your test drive. Longer-term insurance will also be cheaper after buying your car. The greater security you provide for your vehicle, the lesser the risk of break-ins or theft, and that’s excellent news for your car cover costs. Add no claims bonuses, and your total car insurance bill can drop as much as 75 per cent over time!
Lowering the Cost of Cover
If you drive a performance car, a modified car or a vintage car, you will probably need a special insurance policy. Unfortunately, those premiums are usually high, reflecting the elevated repair costs and theft and accident risks. Although a special policy is required for those vehicles, speciality providers who often like the same kinds of vehicles may offer lower cover costs than a standard-view insurance provider. Seek cover quotes from those speciality providers for quotes often on the lower end of the price scale, then consider increasing your voluntary excess and increase the security for the special vehicles to maximise your discount potential.
Car insurance groups allow auto mobile insurance providers to make fast decisions on car cover quotes. Use both technology and the highly competitive nature of the car insurance industry: Obtain multiple quotes online, using our free tools to compare quotes, plans, options and features to examine each closely. Find the best and cheapest plan for your driving situation from the comfort of your own home.