Car insurance is a must for anyone who owns a car. One of the factors that determine your yearly insurance cost is the Car Insurance Group your vehicle falls into. Knowing how these groups affect your premium can help you save money.
Insurance groups range from 1 to 50, with 1 to 12 being the most affordable and classified under tax bands A to E. As the group number increases, so does the cost of insurance.
When you request an insurance quote, the company looks at the group rating of your car model. This rating depends on how likely it is for the car to get damaged and how much it would cost to repair. Factors in this evaluation include:
– Security features like locks and alarms, and how well the car can resist break-ins.
– The car’s price and the cost of its replacement parts.
– Fuel efficiency and overall performance.
There are several ways to cut down on your insurance costs. Factors that can help lower your insurance group include:
– Having a clean driving record with few or no past claims, tickets, or alcohol-related offenses.
– Owning an older, less expensive car, as fancy cars tend to have higher insurance rates.
– Living in areas with low crime rates, like the countryside, which usually means fewer insurance claims.
– Keeping a good credit score.
– Being over 25 years old, as age can lower your premium.
– Completing a Pass Plus course.
There are numerous other strategies to reduce your insurance bill. For example, an Irish insurance company, 123.ie, found that 87% of men could save money by switching to their service due to new equality laws in Ireland.