Auto insurance » Motor Insurance

Car Insurance Groups Explained

admin — Wed, 29 Dec 2010 15:31:02 +0000

If you have your own car you will want to save as much money as possible on your car insurance premiums. There are many factors that can affect how much you are likely to pay for insurance and your car insurance group rating is one of the major considerations.

This year sees the migration of the traditional ratings to a much broader system. Instead of the groups being based from one to twenty they will now be based on a system from one to fifty. The reason for the change is because of the ever growing choice list of cars now available on the market.

How are Car Insurance Groups Calculated?

Understanding how the car insurance groups are calculated can help you with an informed decision when it comes to choosing your next vehicle. When a new car comes onto the market it is given a car insurance group rating depending on a number of factors.

For many years most new cars fell into an insurance group which was rated from one to twenty. A group one vehicle is seen as the lowest risk and the group 20 the highest.

A group one car, such as a very small petrol car, would be the cheapest to insure and a group 20 vehicle would be a prestige vehicle costing potentially thousands to cover.

Who Calculates the Groups?

The groups are decided by the Insurance Group Rating Panel. The panel is made up of members of the Association of British Insurers (ABI) and Lloyds Market Association (LMA). Around seventy per cent of the information used by the panel to assign a rating is based on research by the Motor Insurance Repair Research Centre – (Thatcham).

The panel usually meets monthly to recommend an insurance group for each new UK specification passenger car.

What affects the car insurance group of a car?

According to the Association of British Insurers, the cost of motor vehicle repairs accounts for over half of all the money paid out in motor insurance claims. This is the main reason why repair costs feature strongly in how the groups are defined.

The insurance group for a UK specification car will take into consideration the following factors:

1.The cost of a new car
2.The repair costs to a vehicle, including parts and labour, after a standard crash tests performed by the research association
3.The performance of a vehicle (0-62 timings etc.) Acceleration and top speed are important factors.
4.The costs of a body shell replacement because they are essential for certain accidental damage repairs.
5.Car security is also a major factor. Standard alarm systems as well as shielded locks provided by manufacturers can help reduce insurance claim amounts.

Security in detail:

E – Exceeds the security requirement for the insurance group
A – Acceptable. The car meets the standard requirements.
P – Provisional – Not enough data when the model was launched.
U – Unacceptable. The security of this vehicle is significantly below the requirements and could result in a security upgrade.

In summary, with motoring costs rising almost on a monthly basis, it may be wise to use the car insurance group of a vehicle as an indicator of future costs.

By: Adrian Kelly

Car Insurance? Don’t Just Accept The Renewal Quote

admin — Thu, 29 Jul 2010 07:30:09 +0000

Many millions of insurance renewal, bills will be sent out over the next two weeks, you should consider if it’s a good idea to just accept the quote. On the other hand, maybe you should shop around to see if you could find a better deal.

Huge numbers of motorists will be in severe shock when they discover how much their premium will have risen since paying their insurance a year ago.

In the UK, new number plates are issued during the month of March; it is also the month with the highest number of car sales. So obviously, as a side effect is also the month, the highest amount of car insurance policies arranged.

So for many millions March will be the happy anniversary of the purchase of their brand spanking new car. Unfortunately, it will also be the anniversary of taking out their new insurance policy.

Renewal time is an excellent opportunity to look over your policy, and consider, could you get the same cover and pay less money?

A good place to start is by going through all the boring terms and conditions. You may find that in your rush to get into your new motor last year. You did not consider exactly what insurance conditions you needed for you and your vehicle.

You may find that their are some conditions that don’t apply to you what you no longer need, removing small pieces of cover can significantly reduce your insurance premium.

The floods last summer had a huge effect on the cost of renewing household insurance because of the massive number of claims. People do not realise that huge numbers of cars were also damaged or destroyed by the floods, which have contributed to an increase in car insurance costs.

The AA has released its latest index of quarterly insurance costs. The survey concludes that there’s been a large increase in the number of personal injury claimants on motor insurance companies. The knock-on effect of this has been a 2.5% increase in the cost of insurance cover. The index covers quotes from more than 80 large and small insurers, and found that the average comprehensive insurance premium is now nearly

Car Insurance – Payout Problem Areas

admin — Sun, 25 Apr 2010 11:04:17 +0000

According to the Financial Ombudsman Service there has been a 70% increase in motor insurance complaints over the past six months.

With the value of cars rising, motor insurers are choosing to repair cars as appose to writing them off. This has resulted in the majority of disputes between consumers and insurers being based on bad quality repairs and valuations.

Repair costs for cars that are worth

Car Insurance – Flood Advice

admin — Mon, 05 Apr 2010 08:28:01 +0000

With heavy rain predicted across the UK, the newspapers and television reports warn us of impending flood dangers. A majority of such reports tend to focus on the damage sustained by homes and businesses.

Flooding can also affect vehicles, sometimes leading to thousands of pounds worth of repairs needed for flood damage. Road users are also at a risk, even those who don’t live in areas at risk of flooding.

But there are steps you can take in order to prepare yourself, your vehicle and your finances in case of flood damage:

Check that your car insurance policy will cover you in the event of flood damage. Most fully comprehensive policies will cover flooding as standard. However those on ‘third party, fire and theft’ policies may find themselves having to pay a little more for flood damage cover.
If a flood warning has been issued in your area and you’re unsure as to your cover, contact your motor insurance provider to double-check any details before setting off on a journey.
If a flood warning is issued in your area, try and store your vehicle on higher ground if you are able to.
If you need to travel during flood conditions, be sure to leave plenty of time for your journey.
Make sure you let someone know of the planned itinerary of your journey, including departure times and an approximate return time – this information can be valuable to emergency services should you become stranded.
Keep a watchful eye and ear on your local radio and TV weather and travel reports, take time to research alternative routes in the event of road closures in flood-prone areas.
Pack a small bag with a change of clothes, food and drink and a fully charged mobile phone in case of emergency.

When driving during flooded conditions it is important to take precautions, both before and after your journey:

Drive slowly and cautiously, leave plenty of space between yourself and the car in front, remembering that braking distance is reduced in wet conditions.
Drive very carefully around flooded parts of the road, keeping to the highest possible point. Do not attempt to travel through flooded patches if you’re unsure of the depth.
If you have to travel through flood water, drive at low speed and be vigilant for any debris or other obstacles that could cause damage to your vehicle.
Once clear of the water, use gentle braking to dry your brakes, but ensure it is safe to do so before taking this step.

If your car has suffered flood damage, do not attempt to switch on the ignition, and check the outside of your vehicle for any damage.

It is important to get your car examined by a qualified mechanic at the earliest opportunity following floods to assess the damage caused by flood conditions. It is also advisable to contact your motor insurance company to check if you’re eligible to claim for any damage.

By: David Collins