02 Dec

Are Lower Insurance Groupings Cheaper?

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Insurance guides

Can you get cheaper car insurance by understanding Insurance Groups?

Getting cheaper car insurance can be a complicated process. There are a great many variables and options that go into determining the price of your insurance quote. While many factors, such as where you live, what you do for a living and your history with car insurance all affect your premium, your car’s Insurance Grouping has a major impact on the price you will pay. What are insurance groupings, and how do they affect the price of car insurance? Finally, is there a way to get cheaper car insurance by understanding the range of insurance groups?

What are Insurance Groups?

All cars have an Insurance Group. This is an estimation of how expensive a car is to insure. They range from 1 (being the cheapest to insure) to 50 (the most expensive to insure). These groupings are determined by the Group Rating Panel. The intent behind the groups is to estimate how much it would cost insurers to pay put on insurance claims. This refers to the cost of repairing or replacing parts if necessary. Insurers often use these insurance groups when they determine how much to charge for a policy.

What do Insurance Groups Consider?

There are a number of features and concerns that Insurance Groups cover. They include, but are not limited to:

Cost of replacement parts

Repair costs – Cars that have higher potential replacement or repair costs are likely to cost the insurer a lot more if they need to pay out on a claim. This leads to higher insurance premiums.

Car Values – The price that a new model of the car sells for impacts on the potential insurance premium price.

Performance – the speed and performance of a car have an impact on its Insurance Grouping. This is because faster cars tend to have more insurance claims than slower cars.

Safety – Cars that are safer, and less likely to have serious accidents, tend to have lower insurance groupings.

Security – Cars that have more security features, such as high security locks, alarms and immobilisers, are harder to steal. As a result, they tend to have lower insurance groups.

Lower Insurance Groupings

Choosing a car with a  lower insurance group is a good bet to get cheaper insurance. However, it is not definite. Other factors, such as where you live, what kind of job you have, your insurance history and more can have an equal or greater impact on your insurance premium.

Instead, one of the easiest ways to save money on your car insurance is to consider how long you really need to be insured for. Regular car insurance policies generally cover you for a whole year. However, if you do not drive consistently, or only use a car occasionally, then a year’s car insurance is an unnecessary waste of money. Temporary car insurance from GoShorty covers you for between 1 hour and 28 days. This way, you can cover yourself for just the time that you need, and not waste money on cover you aren’t using. Temporary car insurance is fully comprehensive cover that gives you all the same protections that a year long policy would – it just doesn’t cover you for an unnecessary length of time.

Get a quote today, and see how much you could save on your insurance.