Lower insurance groups render a reduction in annual car insurance premiums, so if you don’t know how car insurance groups work it’s a good idea to read on.
Insurance bands 1 to 12 are the lowest paying bands, sitting in tax bands A to E. Insurance bands go up to 50, which is where the highest insurance costs lie.
Which band are you in?
When a customer wants a car insurance quote, insurance companies look at the group ratings for the initial lowdown on the cost of their services.
Every car model available on the market is assessed and giving a group rating; the rating is affected entirely by its likelihood of getting damaged and exactly how much it would cost should a repair need to be enforced. Your car is put into an insurance group according to these factors:
- Security levels – locks, alarms and overall resistance to break-ins.
- Price or car and price of any replacement parts.
- Fuel efficiency and general performance.
What can save you money?
Plenty of factors affect which insurance group your car is ultimately placed into. These factors reduce the cost of insurance:
- Few or no previous claims, tickets or drink-driving related offenses.
- If you have an older, less flashy car. Expensive cars have a much higher insurance cost.
- If you live in a low-crime, low claim area of the UK. Those who live in the countryside tend to shell out less for insurance.
- If you have a good credit score.
- If you’re over 25, you won’t see your age increase your premium.
- Taking a Pass plus course.
However there are many other factors that could save you money, for example, one insurance company in Ireland, 123.ie, showed that 87% of men could save money by switching to them since the new equality laws that have changed in Ireland.