Car Insurance Groups
A large part of your car insurance premium is calculated based on the car that you drive. Each car is assigned an insurance grouping and prior to 2007 these insurance groups ranged from 1-20, this has now been expanded to 1-50. In most cases the lower the insurance grouping, the cheaper a car will be to insure.
The insurance group a car is given is determined using the following:
- The cost of parts and labour to return the vehicle to its pre-accident state after a 15KMPH impact.
- The new car cost and how much the settlement would be in a “total loss” claim.
- The performance of the car, including acceleration and top speed.
- The cost of parts from a list of 23 common parts.
- The cars security equipment.
Cars With Small Engines Have Lower Car Insurance Groups
Up until only a few years ago cars with a small engine would often have a lower insurance grouping and be cheaper to insure than cars with larger engines. However, with recent engine developments many car manufacturers are making smaller engines more powerful in attempt to reduce emissions. With these enhancements there are now cars with small engines that are as powerful as cars with much larger engines. You should always find out exactly what car insurance group a car has rather than estimating based on its engine size.
My Car Has A Low Insurance Group But My Insurance Is Still Expensive
The car insurance group is only a part of your car insurance premium, other factors such as your postcode can have a larger effect. Take a look at our car insurance postcode risk list to see if your postcode is seen as high risk by insurance companies.
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