Car Insurance Groups

Car Insurance Groups

Car Insurance Groups

The car insurance industry is one that is entirely based upon risk. Insurance companies are really just numbers shops, with people working hard to put a number on the risk that you pose to the company. With that in mind, the insurance companies have to have a certain way of grouping cars based upon their level of risk. This is a very important part of the process that makes things much easier on companies as they provide car insurance quotes. So how do the car insurance groups work? That system has recently been changed to something that is quite easy to understand.

Grouping based upon value, power, and performance

Though a lot of things go into determining your level of risk, one of the most important factors is the value, power, and performance of your vehicle. When determining the level of risk posed by the car itself, the insurance companies rate cars in groups 1-50. This system was introduced in 2010 and is used by all of the major insurance companies. Depending upon how much your car is worth, how fast it goes, and things of that nature, the insurance company will put it into one of the groups. The most expensive and highest performance cars get a rating of 50, while the lowest performance and value of cars get a rating of one.

What makes a category one vehicle?

You might be wondering what sorts of vehicles are put into this low-cost group. After all, it would be nice to drive one of these things, right? If you are willing to sacrifice value and engine size, then you might get a vehicle grouped around the bottom of the scale. Vehicles with small engines are less likley to be involved in an accident, so they often bring about lower rates. This is the lowest value of the car insurance groups and having a car grouped here will save you money for many years to come. You will want to think about this when you think about which car to purchase.

The six factors involved in rating vehicles

So how do the car insurance companies determine which vehicles get the cheapest car insurance quotes? The insurance companies consider the value of what it would cost to repair a car and they consider how long it would take to get that car fixed. Likewise, they consider the cost of the parts, the brand-new value of the car, the car’s performance, and how secure it is against theft. These factors work together to produce the rating, so if you are looking to keep your car’s insurance costs down, you should think about these things when you compare car insurance.

Checking the car’s insurance group rating

One thing that you will want to do as you compare the market is to check the car’s insurance group. You don’t want to get surprised when you find out that your car is in the highest of the car insurance groups. There are ways to check this stuff out online, so do that before you make a purchase. It will matter in the long run, so don’t allow yourself to enter into a purchase agreement until you figure that out.

Finding low cost insurance regardless of your car’s group

There is more to insurance than just the car you drive. There may be several factors working in your favor, so you need to compare the market in order to get the cheapest car insurance quotes. Doing a car insurance comparison will only take you a few minutes and it will save you a lot of money in the end. Use a car insurance supermarket site to find cheap car insurance and to get the information that you need.