Car Insurance Groups Explained
It is quite important to save as much money as you possibly can when it comes to car insurance. There plenty of things that you must look into detail about when determining how much you will end up paying on car insurance. The rating for the car insurance group that you are partnered with is one of the many things that you must first consider.
A little about current ratings
Current ratings for this year of 2013 are quite different from what they were in previous years. The ratings are simply seen on a broader system nowadays. Instead of being based on a scale of 1-20 they are now based off of a scale of 1-50. This major change has occurred because there are more cars available to purchase.
Car insurance groups—how they are calculated
It is important to understand the way that car insurance groups make their calculations per vehicles. When there is a new vehicle manufactured it receives a certain calculation according to many factors that pertain to it. People had been used to vehicles being in the 1-20 rating. One is known to be the lowest rating with twenty being the highest. A vehicle that belongs to group one would be a vehicle that is small in size and uses the least amount of gas compared to other models. You can only imagine that a group 20 vehicle is one that will be larger and uses more petroleum.
Who are the groups calculated by?
The Insurance Group Rating Panel is the people who are responsible for choosing which group certain vehicles fall under. The members are known as the Association of British Insurers, as well as the Lloyds Market Association. Research is performed for the determination of each type of vehicle as well as which group they belong in. Each month the group meets up for a new car that has been developed in the UK.
What factors affect which insurance group a car belongs too?
As far as what the ABI is concerned, the amount of money that is used towards repairing motor vehicles consumes over half the amount of money that is paid for motor insurance claims. Basically with that being said, the repairs of a damaged vehicle play a huge role in which category certain vehicles belong to.
Specification considerations for cars in the UK
There are plenty of them to take into consideration, as you can see below:
- How much the car costs?
- Costs to repair particular vehicles that are damaged (includes labor, tests, performance, etc.).
- Acceleration ability of the vehicle.
- Cost of replacing the body shell of a vehicle.
- Security alarm systems that are placed within the cars (these can help to reduce the group insurance costs).
With that being said, if you don’t own a car and you plan to lease one, you should take all of the above into consideration. You can also check out the leading provider of lease cars to find some of the greatest prices on leasing plans offered.
Category: Car Lease
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