Car Insurance Groups
Car insurance groups are sections of the driving population that have common risk elements. Target groups play a large part in determining your car cover costs. When you apply for car insurance, the carriers evaluate in which major group they qualify you, then present a premium quote for that target group. One carrier may base your quote on a different risk factor than another, and the premiums can vary widely between providers, depending on statistical data of accident risk.
Request quotes from multiple insurers. Depending on their classification of your data, you might get denied by a few companies; don’t be discouraged: They simply don’t specialise in your group. Others, however, will present their cover’s premium bids. Evaluate the premiums offered and compare auto coverage options and seek every possible means to gain discounts. Obtaining multiple bids for evaluation in this competitive field benefits you, the driver, not the insurance companies. You will find quality cover at a rate that you can afford.
When you buy or lease a vehicle, you shop with capabilities in mind. You might prefer a high-performance vehicle, or you want a particular modified vehicle or a luxury model, for instance. You might want an economical car with lower emissions or a vintage car. The car you choose and its risk factors greatly impact the insurance premiums you will pay for that vehicle, in addition to your own driving record and other personal information.
Some cars carry higher risks than others. A luxury auto mobile, for instance, is more coveted by car thieves than an economical commuter vehicle. Repairs cost more for some vehicles than they do for others. Performance cars, for example, are statistically more prone to being driven unsafely than vans. Your driving record may not reflect that, but insurance is a cost-sharing venture: Vehicle types influence premiums.
Insurance companies evaluate and categorise drivers similarly to cars. Statistical records show people trends that influence rates. Licence penalty points, age, mileage, occupation and residence, for example, influence your insurance costs. Different companies place different stresses on these factors, however, which is why you can receive widely differing insurance premiums on the plan type you want. Compare several quotes as you search for your best and affordable rate.
Your postal code plays a part in risk evaluation. You can have a spotless driving record, travel only a few miles every day, drive an economical vehicle and still pay more for a policy than your sibling with identical factors but who lives in a safer area. The crime rate in your area will automatically escalate risk in your vehicle cover. Safety and security measures can help reduce those risk, though. Parking out of sight in a secured garage, engaging immobilisers and using anti-theft and tracking devices can influence rates in your favour.
Motorists who complete policy periods without traffic violations or filing a claim may often qualify for a no-claims discount. The discount will lower premiums on the next cover period. Your safe driving record is rewarded by reducing the risk category on your vehicle. Use every opportunity to reduce those premiums to stretch your premium pounds.
Lowering Your Rates
As noted above, there are things you can do to reduce your risk factors and your premiums. Increasing your voluntary excess is one sure-fire way to lower your premium costs. If you are in a high-risk group, car alarms, stronger door locks, anti-theft devices like wheel immobilisers and even parking in a secured area at night all positively influence your auto mobile rates. Reducing mileage is another method. Paying lump sums or allowing automatic recurring payments may be another.
Because every mile that you drive increases risk of traffic violations or of an accident, reducing your mileage can help reduce your insurance rates. A fuel-efficient vehicle reduces more than your petrol expenses as well. Both factors reduce risk, affecting your risk group for the good.
Regardless of the car insurance groups to which carriers assign you, you can often find cheaper cover with multiple rate comparisons from a variety of carriers than you would opting for the first one you find. Insurers compete for your business, and that competition means lower rates. Don’t sacrifice your budget: Buy cheap cover that fits insurance needs and still drive legally.