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Car Insurance

Insurance Groups for Cars

Understanding the correlation of insurance groups for cars and how they influence your vehicle insurance rates can greatly influence both your choice of cars and your choice of car insurance. The type of car you drive represents to an insurance company the risks of theft and accident. If you choose a high-risk vehicle, its rating on the risk scale lies closer to the maximum of 50; low-risk cars lie closer to the scale minimum of one. The higher the risk number, the higher the risk of theft or accident.

Whether you are looking for new driver car insurance or for mature driver insurance, insurance groups for cars are just as important to you as they are to insurance companies. As you are looking for a new car, the groups can be even more influential before your purchase decision. The new performance car certainly looks sleek and flashy, but you know its risk factor is rather high. The lighter economical car on the next row will cost less to own and to insure. Knowing the risk factors can save you money, whereas, not knowing them might cost you a considerable sum.

Risk Factors and Insurance Groups

Some cars pull higher insurance premiums than others. Regardless of age, gender, postal code or driving record, high-risk cars always generate high insurance premiums, simply because it carries a high risk of theft, of being in an accident. Its repair times and cost are also computed into the insurance premium.

The performance car is among the most expensive to insure. It has a very powerful engine and can accelerate and run at high speeds – both of which are major influences in risk ratings. They are also high on thieves’ watch lists. If damaged, performance cars usually take longer to repair than a sports hatch, and its parts are usually more expensive. Combine the theft threat, the acceleration rate, the engine size, the vehicle weight and the repair expense, and you have the risk rating for the vehicle.

Larger, faster vehicles cannot stop as quickly as lighter, slower vehicles. They are heavier and cause more damage and greater injury upon impact. The more specialised a high performance car is, the harder it can be to find a qualified mechanic to repair it. If parts must be ordered, repair times are extended. Insurance companies don’t assign higher premiums to performance cars – or any other car – arbitrarily. The damage potential, the repair expense and the threat risk all combine into a low-to-high risk factor group.

Vehicles in low risk groups are considered safer to drive: They are lighter in weight, stop much more quickly and cause less damage and injury. They are usually cheaper and faster to repair with commonly available parts. They are usually easier to manoeuvre and have slower acceleration and travel. Low-risk car owners enjoy the bonus that low-risk cars are usually more fuel-efficient than higher-risk cars are, and they have a lesser threat of theft. They still can be stolen, but the low-risk cars aren’t as high on a thief’s priority list. Low-risk auto mobiles are safer to own in both low- and high-crime areas because of that reduced theft risk.

How Insurance Groups Affect Premiums

If you have even a rudimentary understanding of how insurance groups for cars are determined, you are in a much better position to evaluate and purchase a vehicle, knowing the impact of the choice on your insurance premium. You are better able to determine which is a truly cheap insurance deal for a performance car or one that hides its lack of coverage benefits behind a cheap price tag.

High-risk drivers, motorists with a history of traffic violations and accidents, will find they receive far cheaper insurance rates with low-risk cars. High-risk cars driven by high-risk motorists always equates to extremely high insurance rates. Young drivers are high-risk drivers until at least age 25. Their lack of driving experience causes the risk category, and only time and safe driving will counter the insurance rates.

Low-risk vehicles also improve your chances of finding quality cover at competitive prices. Parking your locked vehicle inside a locked garage greatly reduces the chance of theft and vandalism. It that’s not available, park off the street in a well-lit area. If all else fails, park on the street away from trees, shadowed or unlit areas. Always use Thatcham-approved security devices, regardless of where you park. Young drivers benefit from the Pass Plus course when most insurance companies reduce rates upon completion.

Insurance groups for cars are not the only factor insurance companies engage when determining insurance rates, but the safety and security bands, complemented with theft and repair issues, all play significant roles in that premium’s equation. Compare rates from several top providers to determine the best coverage rates with discounts, bonuses and safety and security rewards.

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