Car Insurance Groups: An Overview

Warning: Invalid argument supplied for foreach() in /home/redboxne/ on line 139

The term “car insurance groups” is used to refer to the suggested group numbers assigned to all car models by the Association of British Insurers that are based in the United Kingdom. Based on these numbers, car insurance companies are able to more accurately calculate the premium coverage for all the insurance policy packages that they offer their clients. You can opt to pay your chosen premium coverage monthly, quarterly, or annually depending on the availability of these options.

What the Numbers Are For

These “suggested” insurance group numbers standardize the process of calculating insurance premiums among the various car insurance companies. These group numbers are critical for the clients not to feel cheated by their chosen insurance company. Hence, it is vital that you choose an insurance company that strictly incorporate the use of these rating for car insurance groups in estimating the premiums that their clients will be paying in the event that they enroll themselves in any of their insurance packages.

How These Numbers Are Computed

Being knowledgeable about how car insurance groups are evaluated and assessed will help you come up with an informed decision when it comes to choosing your car. Many factors and criteria are considered before finally a brand new car is given its rating and before it is actually launched out in the market. For many decades now, new cars and vehicles are given their respective group number depending on the rates and rankings they get, which should be a number between 1 and 20. Each car in group 1 belongs to the least feasible risk group, while those in group 20 are the top most feasible risk group. So if you have a smaller automobile running on fuel being designated as part of group 1, it will be sold the cheapest when it comes to insurance package; while a vehicle designated as part of group 20 will most likely be a high-end car that will be sold more expensively in terms of insurance coverage.

What Points Are Considered

There are various points that are taken into consideration before designating cars and vehicles their respective car insurance groups. The car maintenance feel almost always account for more than half of all the money for the insurance claims. Hence, these fixing charges are considered one of the major factors that determines to which insurance group a vehicle or car will belong to. Some of the other vital points that are considered in determining the group number for a particular car are the following:

Your vehicle’s make is a determinant for its insurance group rating. Well-known car companies include Isuzu, Ford, Alfa Romeo, BMW, Chrysler, and Suzuki, just to name a few.
Your vehicle’s model will also matter. Ford, for example, has various car models like Aspire and Crown Victoria, and each of these car models will have its own insurance group rating.
Your vehicle type will also be considered. Whether your car is small or large, a sports or luxury car, it will be designated its very own insurance group rating as well.
The cubic capacity of your vehicle will likewise be considered such that a rise in your vehicle’s cubic capacity will mean higher mileage and higher grouping and, of course, a higher premium price.
Other points that are assessed to determine the car insurance groups ratings include the vehicle’s gearbox type, the door plan, the body type, and the fuel type.

Nadya Joy Ador is a work-at-home mother of two lovely daughters. She has been doing freelance work for more than three years now, catering to more than twenty clients from across the globe. When she’s not writing or editing, she keeps herself busy playing or shopping with her two angels.

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.

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.