Car Insurance Groups – How To Save Big Bucks On Your Car Insurance

Car insurance groups are a standardized system for rating automobiles for insurance risk purposes. Car insurance providers, in order to arrive at the premium you will pay to insure your car, will take into account a number of factors. For instance your age, sex, where you live, what sort of work you do, etc will all be a consideration when formulating your insurance coverage rate. Not surprisingly the make and model of your car will also be a significant factor in the insurance provider’s quote.

In order to simplify this process and standardize a reliable method of determining rates within the insurance industry a system of car groups has been developed. The car insurance groups typically range from 1 to 20, although in some cases the range is actually from 1 to 50. In any case car insurance groups start with group 1 as the cheapest car insurance group and progress in cost as the numbers increase.

The various groups are determined by the Group Ratings Panel, which is appointed by an association of automobile insurers and underwriters and whose job is to rate each car available in the marketplace to a car group. The Group Ratings Panel must take into account a number of factors to determine into which group an individual car most appropriately fits. The Group Ratings Panel will consider such things as the cost to replace the car at current prices, the cost of various combinations of parts and labor to make repairs as well as all car’s performance in crash testing and it’s ability to resist damage from various types of mishaps.

Obviously the more resistant a vehicle is to damage and the lower the cost to repair damage will result in a group with a lower number and therefore a lower rate of insurance.

In addition to the basic calculations for repair there are considerations given to the power and performance of a vehicle since high-performance automobiles are more likely to be involved in situations calling for major repair and even total replacement not to mention the fact that the more desirable a car tends to be the more likely it is to be stolen.

Security is also an important consideration, such things as locking and immobilization systems, manufacturer serial numbering and vehicle identification numbers and even hi-tech tracking systems all contribute to lowering the risk of theft and loss and therefore play an important role in the assignment of car insurance groups.

For most of us, the cost of insuring the car we are about to buy is an important consideration. Although it’s possible to have a ballpark idea of the cost of insuring a vehicle based on its value, make, model and performance, good sense dictates that determining a car’s insurance group prior to purchase can prevent a possible gut-wrenching surprise. Luckily there are a number of reliable sources available on the Internet that provide access to databases containing all the necessary information necessary to determine the exact insurance group for the make and model of car you’re interested in purchasing.

Considering the fact that car insurance is one of the most expensive aspects of owning an automobile, the wise purchaser should always “look before they leap”, as they say, before putting their money down.

Martin Oro, with several years experience in the automotive business, has been writing and blogging about various aspects of the automotive industry for some time now.

Van Insurance Groups and Ratings

Van Insurance Groups work in the same way as Car and Motorcycle Insurance Groups – and it is these that the Insurance Industry use to calculate the classification of your commercial or non-commercial vehicle.

With Insurance costs increasing by over 22 percent in 2010/2011 – it is no surprise to learn that many if not most vehicle manufacturers are trying to find ways to lower the Van Insurance Group classifications to get their vehicle more competitive in this difficult financial market.

With Vans and Commercial Vehicles alike, the Insurance Categories issued to the manufacturers is set by the ABI (Association of British Insurers) and Thatcham – the security accreditation specialists. All Van Insurance Groups are between 1 – 20. The lower the number, the less concerning it is for the insurance companies to insure the vehicle at a lower rate.

Unlike cars and motorcycles, the humble van has a guide only insurance rating due to the amount of uses which commercial vehicles can be used for. Even though this is unique to the commercial vehicle industry, it also passes on to cars and motorcycles where the usage is classified “for commercial use.”

Another prevailing part of calculation is based on the security of the vehicle, and the classification which is set by Thatcham. Should your vehicle have a factory fitted alarm and immobiliser your Van Insurance Group will be lower than a vehicle without. Most if not all new commercial vehicles now have factory fitted immobilisers fitted as standard.

The last factor which could make your insurance costs increase is the town or county of where the vehicle is parked or used on a daily basis. This is the largest factor when Insurance Companies calculate the premium of your Van Insurance, followed closely by the value of the vehicle and the commercial usage. Each year the insurance industry will create the analytical data supplied by the insurance companies to re-evaluate the groups of all commercial vehicles based on claims made by companies and individuals.

Summary: Always check the Van Insurance Group before you purchase a new or pre-owned vehicle – and when looking to renew your insurance, always remember to re-calculate the value of the vehicle. This is something that the insurance company will not do on your behalf, and can add between 2.5 and 5 percent to your renewal premium. When a vehicle becomes a total loss through accident or otherwise, the insurance company will only ever pay the market value, not what you have insured the vehicle for.

Never forget to read the terms and conditions within your Van Insurance summary when you take out a policy. You have a “cooling off” period should you find something which was not explained to you correctly at the point of initiation.

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Everything You Need to Know About Car Insurance Groups

Car insurance groups and the rating is one of the main factors that will decide how much premium you would have to pay on your car. Basically, for every insurance customer, the company would decide the category in which he/she would fall based on ratings and group calculations. Understanding how these groups are calculated will provide you a better understanding of how much you would need to pay towards the insurance of your car.

How are these Calculated?

Learning how car insurance groups are normally calculated will help you make an informed decision about selecting your new car. There are several factors which decide the rating that any new car will get whenever it is introduced in the market. For several years the new cars had been designated to a particular group depending on the ranking that it received from 1 to 20. Any car in group 1 is a lowest possible risk group with 20 being the highest risk group. A small car running on petrol belonging to group 1 would be the cheapest in terms of insurance while a group 20 car would normally be a luxury car that will cost you quite a lot in terms of insurance.

Factors that Affect the Rating of a Car

There are several factors which decide the car insurance groups that most cars will fall into. The cost of car repairs will normally account for more than half of all the money that is normally paid for insurance claims. For this reason repairing costs are considered to be one of the main factors that will decide which group a particular car will fall into. Given below are some of the main factors that are considered while assigning ratings to a particular car:

• The price of a car
• Repairing costs for a car, including labor and parts after various standard tests are performed by a designated association
• Costs of body shell replacement for the car since these are very essential for various accidental repairs
• The performance of the car like top speed and acceleration are very important factors
• Security that a car offers. The shielded locks and standard alarm systems that may be installed by the manufacturers will reduce the claim amounts.

There are various groups in which the security of a car would be divided into. If the vehicle is acceptable or exceeds the normal security requirements, the amount that you would have to pay for insurance premium would be lower. However, unacceptable or provisional security features in a car would be considered high risk. Knowing the basic details about car insurance groups will provide you with a better understanding of what type of car you should select to enjoy lower insurance premiums.